An unauthorised overdraft does not trigger a universal legal countdown. No law sets a specific number of days to bring a negative balance back within the overdraft limit granted by the bank. The actual timeframe depends on the account agreement signed when the account was opened, the bank’s practices and how long the balance remains negative.
Unauthorised overdrafts and time limits: what the Consumer Code provides
The key distinction is how long the overdraft lasts, not whether it is authorised. French law classifies overdrafts into three categories based on their duration, each of which entails different obligations for the bank.
| Overdraft duration | Legal classification | Bank’s obligation |
|---|---|---|
| Less than 1 month | Cash facility | Information about the applicable debit interest rate |
| Between 1 and 3 months | Occasional overdraft | Prior information about the rate; a credit offer if the overdraft continues |
| More than 3 months | Consumer credit | Mandatory reclassification as consumer credit |
Reclassification after three months changes the situation: the bank must offer credit that complies with the Consumer Code, at an interest rate no higher than the applicable usury rate. If it fails to do so, it loses the right to charge overdraft interest for the period concerned.
To find out what to do if you have an unauthorised overdraft, the first step is to check your account agreement, which sets out the terms for exceeding your limit and the timeframes for bringing your account back into balance at your bank.
Overdraft interest and excess fees: the true cost of an unauthorised overdraft
An unauthorised overdraft costs more than an authorised one, and the difference is not limited to the interest rate. Several types of fees can add up as soon as your balance exceeds your authorised limit.
- Higher overdraft interest: the rate charged on the excess is higher than the rate for an authorised overdraft, but it is capped by the usury rate published quarterly by the Banque de France.
- Intervention fees: charged for each transaction processed while over the limit, these are capped at €8 per transaction and €80 per month for standard customers. For customers experiencing financial hardship, the cap falls to €4 per transaction and €20 per month.
- Payment rejection fees: if the bank refuses a direct debit or cheque due to insufficient funds, additional fees apply, capped at €30 for a rejected cheque and €20 for a rejected direct debit.
The danger lies in the fees adding up. An account that remains overdrawn for several weeks can incur dozens of euros in intervention fees on top of overdraft interest, without the account holder realising it day to day.
What the bank can do without warning
The bank is under no obligation to accept transactions presented on an account with insufficient funds. It can reject a card payment, direct debit or cheque at any time. A payment can be rejected without prior warning, making it urgent to bring the account back into balance as soon as it goes over the limit.
November 2026 reform: what changes for small overdrafts
The European Consumer Credit Directive (CCD2), transposed into French law, comes into force on 20 November 2026. The reform changes the rules for accessing small overdrafts.
Until now, many banks automatically granted an overdraft facility when opening an account, sometimes without the customer requesting one. The reform now requires an assessment of the customer’s creditworthiness before any overdraft is granted, including for small amounts.
Existing overdraft facilities will not be affected by the reform. However, new customers and renewal applications will be subject to this assessment. This change will affect a considerable number of bank account holders.
Direct impact on unauthorised overdrafts
If a customer is refused an overdraft facility following a creditworthiness assessment, any negative balance will automatically be treated as an unauthorised overdraft. The bank may then charge excess fees from the very first euro below zero, whereas an authorised overdraft would have provided some leeway.
Lower-income households, which used small overdrafts as a cash-flow buffer at the end of the month, could lose access to them and find themselves over their limit without authorisation more often.
Bringing your account back into balance quickly: practical steps to prevent the situation from escalating
Waiting for the bank to send a formal demand letter is the worst strategy. The time between the bank identifying the excess and starting debt recovery proceedings varies by institution, but contacting the bank within the first few days is the most effective way to negotiate a repayment plan.
- Make an immediate transfer from another account: the quickest option if you have funds available elsewhere.
- Ask your bank adviser for a repayment schedule: most banks prefer instalments to debt recovery proceedings, which also cost them time and money.
- Debt consolidation or a microloan: if the overdraft becomes a recurring problem, consumer credit at a regulated rate often costs less than higher overdraft interest accumulating over several weeks.
Your account agreement may specify a timeframe for bringing your account back into balance, often ranging from a few days to a month. After that period, the bank may close the account and register the customer with the Banque de France’s central cheque register if cheques have been rejected.
An unauthorised overdraft is not a loan: it is a temporary concession that the bank can withdraw at any time. The repayment period is therefore not a right, but the outcome of negotiations between the customer and their bank. The sooner you act, the more room you have to negotiate.
