Nadia Antonin
The Banque de France is sounding the alarm: according to the latest monthly barometer of financial inclusion published on 11 December 2025, the number of over-indebtedness files filed with the Banque de France increased by 8.9% over the first eleven months of 2025 compared to the same period in 2024. This increase intensified in November 2025, with an increase of 12.8% compared to November 2024.
In addition, according to the Banque de France’s 2024 typological survey published in February 2025, nearly one in two debt files (43%) includes at least one consumer loan.
The rise of consumer credit
In view of technological developments and changes in consumer habits, consumer credit has experienced strong development in recent years. It is an essential lever for French households. It allows them to finance personal projects such as a car, a trip, household appliances, or to overcome cash flow difficulties. In addition, it represents a strategic activity for banking and financial organisations.
Consumer credit is credit granted to individuals for the purchase of a manufactured object, as opposed to production credit granted to the manufacturer.
It concerns transactions other than those related to real estate. Its amount is between €200 and €75,000 and its repayment period is greater than three months.It is governed by the Consumer Code, which lays down a set of rules relating to the content and conclusion of the contract.
There are several forms of consumer credit:
– the personal loan which makes it possible to finance a project without having to justify the use of the funds;
– the assigned credit linked to the purchase of a specific good or service;
– revolving credit consisting of a credit line, accessible at any time and which is renewed over the course of repayments;
– the lease with purchase option which makes it possible to rent a property (for non-professional use) with the option of buying it at the end of the contract at a price fixed from the start;
– personal microcredit, which concerns people who do not have access to traditional bank loans, due to low income or a situation of financial precariousness.
Consumer credit and over-indebtedness
Appearing to be attractive, consumer credit can quickly become a financial trap if you do not understand how it works. It is considered to favour over-indebtedness, that is to say a situation in which a person (or a household) is no longer able to honour their debts (monthly loan payments, bank overdrafts, rents, etc.).
Over-indebtedness developed in the late 1980s following the lifting of credit controls in a context of strong growth in consumer credit. Despite the passing of the Neiertz law in December 1989 to combat over-indebtedness, the number of filings has continued to grow. Faced with the growing flow of cases, the government adopted the Lagarde law on 1 July 2010, which imposes strict regulations on consumer credit for amounts between €200 and €75,000 and with a minimum duration of 3 months.
To circumvent the Lagarde Law, two new types of loans, not subject to the provisions of the Consumer Code, have appeared: the “split payment”, which consists of paying for a purchase in 3 or 4 instalments, and the “mini-credit”, which is a loan of a few hundred euros. These rapid payment facilities, often perceived as harmless, have led more and more French people into over-indebtedness. In 2024, 17% of over-indebtedness files contained a mini-credit or a split payment, compared to only 1% in 2022 and 7% in 2023 (Source: Observatory of Banking Inclusion).
This sharp increase in over-indebtedness prompted the French government to transpose, by order of 3 September 2025, the European Directive (EU) 2023/2025 of 18 October 2023 on consumer credit agreements.
Tightening of conditions for access to consumer credit
This new reform, which is due to come into force on 20 November 2026, aims to more strictly regulate access to credit and strengthen the protection of borrowers. The new provisions are as follows:
– an extension of the scope of consumer credit regulations: until now, only transactions between €200 and €75,000 were regulated. The new rules will apply from the first euro up to €100,000, and will include split payment, mini-credit, bank overdraft and lease with option to purchase within the scope;
– a careful study of the borrower’s solvency and a consultation of the Banque de France’s Personal Loan Repayment Incidents File (FICP) before any signing of the contract;
– highly regulated advertising. This must be “clear, fair and not misleading”;
– a strengthening of information obligations before signing the contract. The standardised preliminary form for the issuance of the offer (FIPEN) given to the borrower will have to describe precisely the characteristics of the contract;
– support for the borrower experiencing financial difficulties. The lender will have to support them by offering solutions around renegotiation, rescheduling, spreading, extending the duration of the loan, etc., and directing them towards advisory services;
– a new sanctioning power: control and sanctions will now be entrusted to the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF).
This new reform of consumer credit to combat over-indebtedness has thoroughly modernised the provisions applicable in France in order to protect borrowers and harmonise the rules at European level. It introduces a requirement for transparency, ethics and accountability.