Starting on November 20, 2026, France will implement new regulations governing consumer loans, as mandated by a recent decree published in the Official Journal. This initiative is designed to mitigate the risks associated with over-indebtedness, ensuring that loans—particularly those allowing for deferred payment—are subject to stricter oversight. The decree marks the transposition of a European directive concerning consumer credit agreements that was adopted at the end of 2023.

The forthcoming regulations will specifically target various consumer lending products, including interest-free loans, loans below 200 euros, and credit agreements between 75,000 and 100,000 euros, as well as contracts involving lease-to-purchase arrangements. Key requirements for lenders will include providing clearer information to borrowers about the terms and conditions, thereby promoting transparency and informed decision-making when taking out loans. This reform represents an effort to align French legislation with European standards in consumer protection.

These regulatory changes are critical in light of increasing concerns over consumer debt levels in France. By tightening the rules around accessing credit, the government aims to prevent financial pitfalls that can lead to significant debt crises among consumers. As such, the measures underscore a broader commitment to enhancing financial stability and ensuring that lending practices are conducted in a fair and responsible manner.