The “track record” of banking establishments charging the highest rates when the account is in negative is known.
€232: this is the average monthly overdraft amount for 10 million French people. Every month, one in five adults spends more than they have in their bank account, mainly due to rising prices, an already fragile financial situation or even because of a major unforeseen expense (Panorabanques study, 2023). A financial gap that is (very) expensive because banks charge fees to customers who are already unable to make ends meet.
Except that the law does not really regulate these practices and even offers generous action to banking establishments. It’s simple: if, over a period of three months, the average overdraft is less than €400, the banks apply a flat rate which goes beyond the usual banking rules in force, while being perfectly legal. This bill is called “flat minimum interest charge” by bankers. Concretely, these are the minimum fees paid for an overdraft, whatever it may be, between 1 cent and €400, during a quarter.
Banks do not display it large in the windows of their branches or on their website. To find these hidden details, you have to delve into the contracts, in the part generally called “Overdrafts and credits” to find the line… When it is clearly mentioned. For example, BNP and Banque Populaire publicly display prices, while Crédit Agricole simply states that a “flat minimum” will be charged and that you have to go to the agency for details.
Between banks, the prices of this “fine” vary between €1.50 and €16. The Banking Rates Observatory has ranked establishments from least expensive to most expensive:
Every three months, these amounts can therefore be charged to you for the slightest overdraft (unless otherwise provided in your contract). However, by applying these packages, banks earn much more than they should receive in these overdrafts.
Let’s take a simple example: I am a customer at the Banque Populaire du Nord. On the 20th of the month, I am €200 overdrawn and the rest until the 31st inclusive. The next two months, I am not overdrawn. The bank will invoice me at the end of the quarter €9.90 in agios fees, whereas the traditional calculation should have resulted in fees of €1.11 (calculation carried out on the basis of the bank’s brochure) .
On the other hand, if, over the same period, my overdraft is €401, the other calculation method applies and costs me much less: the Banque Populaire du Nord only charges €2.22.
A “gruesome” and “scandalous” situation for the UFC-Que Choisir, which asked the Ministry of the Economy to change the law on these minimum deposits below €400 overdraft.
It should be noted, however, that for people in a situation of financial fragility (registered in the central check file of the Banque de France or declared eligible for the over-indebtedness procedure), provisions exist to limit the fees applied by banks in the event of any payment incident.
