They are considered to promote over-indebtedness: the rules are changing for consumer credit in France

This order , which transposes a European directive updated in 2023, will allow " better protection of borrowers , a reduction in the risk of over-indebtedness and greater harmonization of standards applicable within the European market" , according to a report from the Ministry of Economy and Finance accompanying the text.

According to the Bank of France, mini-loans - loans of a few hundred euros - and installment payments are leading more and more French people into over-indebtedness.

These types of credits were significantly less widespread in 2008 , when the previous version of the European directive was being developed. But with technological developments and changes in consumer habits, they have seen strong growth in recent years.

Credits without fees, credits of less than 200 euros, split and deferred payments, consumer credits between 75,000 and 100,000 euros and rental contracts with purchase option... all these products will therefore be more regulated in the future, by being integrated into the scope of European regulations protecting consumers taking out credit contracts.

At the same time, the order transposing the European directive of October 18, 2023 will strengthen the rules governing advertising on credits .

Advertising framework

For example, it will be prohibited to highlight the ease of obtaining credit in an advertisement.

Awaited by the sector, this order also provides for an "optional consultation" of the national file of incidents of repayment of credits to individuals during the analysis of solvency for credits whose repayment period does not exceed three months (without interest or fees or of a negligible amount), as well as credits of less than 200 euros.

It also adapts the amount of information to be provided for credit contracts of less than three months with negligible costs or an amount of less than 200 euros .

Consumer credit - a term that covers personal loans, revolving credit, earmarked credit, lease-to-own, installment payments, and mini-credits - is marketed by both start-ups like Alma and Younited and established players like Cofidis (Crédit Mutuel) and Cetelem (BNP Paribas).