Wind of panic. The entry into force of the ordinance transposing the European directive on consumer credit has raised numerous concerns and misleading interpretations regarding the future operation of bank overdraftsc. Are these fears justified, when 45% of French people find themselves overdrawn at least once a year, according to the Panorabanques comparator? Here are some answers.
Will overdrafts be prohibited?
No. Maître Laurent Denis, lawyer specializing in banking law, is categorical: “The upcoming legislation ‘does not prohibit’ overdrafts. Some of these simply change legal category.” The main novelty is actually of a legal nature: all overdraft authorizations, including those of less than 200 euros or less than one month, now fall into the consumer credit family.
These discoveries “will indeed be subject to new obligations, but may continue to be granted”specifies the French Banking Federation (FBF) in a decryption published on October 30 on its site. The rules concerning overdrafts (going beyond the authorization granted) are not modified, even if, “today as tomorrow, you must always obtain approval from your bank” to exceed your authorized overdraft, reminds the Federation.
Will it be more difficult to obtain an overdraft?
A priori no. The real change brought about by this legislation is the systematization of the solvency analysis of individuals for the granting of any overdraft authorization, even the smallest (less than 200 euros or for less than one month). So far, “the solvency analysis for overdraft authorizations was already an obligation for all overdraft requests greater than 1 month or 200 euros”specified the Bercy press service during a briefing organized this Thursday, October 30.
And according to Laurent Denis, “more analyzes before granting overdrafts in 2026 does not mean fewer overdrafts” granted. Indeed : “Banks already had the obligation to carry out a solvency study proportionate to the amount and duration”points out the FBF.
Also, “the impact for customers should therefore remain limited”underline the Bercy services. For low overdraft amounts, an analysis of income and expenses will be carried out, “but it could be simplified and proportionate to the amount requested”according to the French Banking Federation. Moreover, “the State will remain vigilant so that these measures do not introduce unnecessary complexity for customers”tries to reassure the Ministry of the Economy.
When will this new legislation come into force?
The ordinance relating to the operation of overdrafts results from the transposition of a European directive (2023/2225). This directive was voted on by MEPs in October 2023. The transposition order was published in the Official Journal on September 4, 2025, and concrete application by banks will begin on November 20, 2026.
The implementing decrees and orders are currently being finalized by the government. The FBF reminds “that overdrafts already set up before this date will not be impacted by the new regulations”.
Will this have an impact on obtaining a mortgage?
Yes, an indirect impact is possible “on the ability of borrowers to obtain real estate loans”warns lawyer Laurent Denis. Indeed, by integrating overdraft authorizations of less than 200 euros into the legal category of consumer credit, these will enter into the calculation of the borrower’s debt ratio. This calculation takes into account all of a household’s expenses (including the monthly payments of all credits) and divides them by its income. We thus obtain as a percentage what the household “owes” in relation to what it earns.
However, this calculation is crucial, because it is governed by the rule of the High Financial Stability Council (HCSF) which imposes a maximum effort rate (debt) of 35%. In short: the total monthly payments of all credits and charges must not exceed 35% of income. So, “from 2026, overdrafts will eat up this ceiling effort rate”notes Laurent Denis. However, the lawyer wants to be reassuring : “The bank also looks at the client’s profile and solvency, as well as their ability to save, and using their overdraft is not prohibitive.”
What will change in summary
A European directive which will come into force from November 20, 2026 will modify the legal nature of part of the new authorized overdrafts. Overdraft authorizations of less than one month or 200 euros will now fall into the category of consumer credit. Which implies that for the latter, banks will be able to carry out more in-depth investigations to ensure the solvency of customers before granting them.
However, “banks already analyze the solvency of people using overdrafts. No overdraft is therefore granted “automatically”recalls lawyer Laurent Denis. The Ministry of the Economy insists today on the fact that “this development should have a limited impact”at least as far as overdraft authorizations are concerned. On the other hand, this could have an effect on the ability of households to take on debt, and to obtain a mortgage loan in particular. Because consumer credits are included in the calculation of the maximum debt ratio, which is limited to 35%.
