8. Overdrafts in France

An overdraft in France is called a découvert.

As a general rule, French banks take a tough line on unauthorised overdrafts.

Unless you receive the prior authorisation, you will not be allowed to go into debit.

Accordingly, if you issue a cheque without sufficient funds in your account, you face the risk that it will not be paid.

However, it is not as cut and dry as it often seems. If you have a good relationship with your bank it may be paid, provided they are confident that funds will be deposited to regularise the account.

If you want a regular overdraft facility each month, pending the receipt of funds into the account, then you need to ask for a facilité de caisse.

The best time to ask for one is not when you find yourself in difficulty, but when things are going well!

If you require a more specific ongoing overdraft then you will need to obtain a découvert autorisé.

Overdraft facilities can be expensive with current rates of authorised overdrafts around 15% pa. If it is unauthorised, then expect 17%+.