Consumer Credit and Bank Overdrafts: The New Rules That Change Everything

Starting November 20, 2026, consumer credit is changing shape in France. A reform stemming from a European directive will expand the scope of protected loans, strengthen solvency checks, and closely regulate bank overdrafts. Millions of households are affected, often without realizing it, by mini-loans, installment payments, or simple overdraft authorizations.

This reform is based on Ordinance No. 2025-880 of September 3, 2025, which transposes into French law the European directive on consumer credit adopted in 2023. It takes effect on November 20, 2026, and significantly changes the rules that had until now governed traditional consumer credit.

A significantly broader scope

Until now, loans under 200 euros and installment payments spread over three months or less largely escaped protective rules. That is no longer the case: they now fall fully within the scope of consumer credit. The upper threshold is also changing, as the system will now cover loans up to 100,000 euros, compared with 75,000 euros previously. Lease-purchase agreements and deferred debit cards are also included.

In the site's Money section, this development is part of a series of recent reforms affecting household daily life, such as the regulation of installment payments and mini-loans already tightened in 2026.

Bank overdrafts under tighter scrutiny

The law also targets overdrafts. Any overdraft authorization exceeding 200 euros will now be subject to the same obligations as a traditional consumer credit loan: banks will have to check the customer's solvency before granting or renewing the authorization, even for short periods. Flat minimum overdraft fees are being eliminated, and when a bank reduces or cancels an authorization, it must now offer repayment spread over twelve equal monthly installments, with no additional fees. A two-month notice period is required for open-ended overdrafts, and at least thirty days for fixed-term overdrafts.

This heightened vigilance on the part of lending institutions echoes other recent protective measures for banking customers, such as the requirement for immediate reimbursement in cases of bank fraud, which took effect earlier this year.

More transparency before signing

Credit advertisements will now have to display a clear warning: “Warning! A loan costs money and must be repaid.” Lenders who fail to comply risk a fine of up to €7,500. Borrower consent must be explicit, as pre-checked boxes are now prohibited.

• Withdrawal period unchanged: 14 days after signing.
• If pre-contractual information was not provided correctly, this period can extend up to 12 months and 14 days.
• Funds can be disbursed as soon as the offer is accepted, without waiting for the previous 7-day period.
• Installment payment platforms (such as “buy now, pay later”) will have to better explain how the credit works and verify repayment capacity.

This strengthening of pre-contractual information complements other transparency requirements recently imposed on businesses, such as the mandatory notice on the legal conformity guarantee.

Why this timeline and this goal

The goal stated by European authorities is to harmonize legislation across member states and curb over-indebtedness, as consumption patterns have evolved with the rise of online mini-loans and installment payments at retailers. Financial institutions and the platforms concerned must have adapted their solvency-check procedures before the law takes effect on November 20, 2026. Consumer advocacy groups largely welcome this strengthening, while reminding borrowers that it is also up to each of them to carefully read the new mandatory disclosures before signing, whether for a traditional loan, a multi-installment purchase, or a simple overdraft authorization.

Frequently Asked Questions

When do the new rules take effect?

The law takes effect on November 20, 2026, in France, under Ordinance No. 2025-880, which transposes the European directive on consumer credit.

Does my bank overdraft count even if it's under 200 euros?

Yes. Banks will now have to assess the customer's solvency for every overdraft, including those under 200 euros or lasting less than a month, which was not systematic before.

What actually changes for a mini-loan or an installment purchase?

These forms of financing, until now loosely regulated, now fall fully under the protective regime of consumer credit: solvency checks, enhanced pre-contractual information, and the 14-day withdrawal period now fully apply.

Sources

• Selectra — Consumer credit and overdrafts: what changes on November 20, 2026
• Léo Lagrange Consumer Advocacy Association
• La finance pour tous — Consumer credit: new rules

This article was written with the help of artificial intelligence. Editorial policy