New rules for small overdrafts in France

As of November 20, 2026, even small bank overdrafts of less than 200 euros will be subject to mandatory solvency checks. This new measure marks the end of a long period of flexibility for consumer credit in France.

Previous flexibility for small overdrafts

Until November 20, 2026, banks are not required to check the repayment capacity of customers for overdrafts under 200 euros or less than a month in duration. This flexibility allows managing financial emergencies such as unexpected bills or delayed wages.

Financial risks for low-income households

Banks benefit from this situation by applying fees often exceeding 15 % per year, without assessing the solvency of customers. This system generates income for financial institutions while exposing low-income households to increased debt risks.

European reform introduces solvency checks

The European directive of October 18, 2023, incorporated into French law by ordinance on September 3, 2025, now requires banks to assess customers' income and expenses before authorizing an overdraft starting November 20, 2026. According to BFM TV, this measure aims to better protect borrowers and reduce the risk of over-indebtedness, while harmonizing credit standards across Europe.

Solvency checks at account opening

The solvency assessment will be conducted at the time of account opening or upon request by the customer, without verification at each transaction. An initial refusal to authorize an overdraft could deprive some people of this financial option.

Transparency in overdraft costs

Banks will also have to clearly display the costs associated with overdrafts, which will facilitate the comparison of offers, although this does not guarantee real accessibility for households excluded from this convenience.

Vulnerable groups at risk

According to Clémence Guetté, France Insoumise MP, in October 2025, more than 22 % of French people are overdrawn by mid-month, relying on authorized overdrafts for their finances. These households, often without emergency savings, risk having their financial balance threatened by the removal of current exemptions.

Impact on precarious workers

Precairies workers, self-employed individuals with irregular incomes, single-parent families, and young workers without a solid banking history are among those most likely to face a refusal of an overdraft, leading to bank fees and a deterioration of their credit.

Existing overdrafts remain valid

Overdraft authorizations granted before November 20, 2026, will remain valid. However, banks may cancel them under certain conditions, with notice and possible spreading over 12 months.

Preparation for the new rules

The time is ripe to renegotiate or change banks to obtain better conditions. Roland Lescure, minister in charge of coordinating the reform, has organized meetings to clarify the new rules. Banks are preparing to adjust their evaluation processes, and some may be more flexible before the end of the current regime.