Consumer credit in France is entering an unprecedented phase of regulatory transformation. Ordinance No. 2025-880 of September 3, 2025, which transposes European Directive 2023/2225, redefines the scope of products subject to borrower protection rules. Its entry into force is scheduled for November 20, 2026.
At the same time, over-indebtedness rose again in 2025, according to the report from the Banque de France presented on February 17, 2026. Understanding credit and its stakes now requires integrating these concrete developments.
Split payment and mini-credit: products soon to be regulated like traditional credit
“Buy now, pay later” schemes have multiplied in recent years on online shopping sites. Presented as simple payment facilities, they had until now escaped the legal framework of consumer credit. The reform of November 2026 changes the game.
Ordinance No. 2025-880 includes mini-credits, certain split or deferred payments, free credits, and loans between 75,000 and 100,000 euros within the protective regime. These products will have to comply with a standardized pre-contractual information and undergo a borrower creditworthiness assessment. For consumers, this means that every commitment, even of a small amount, will be accompanied by a document detailing the cumulative cost and deadlines.
The main risk of split payments lies in the multiplication of small commitments that weigh on the monthly budget. Three or four simultaneous split purchases can represent a significant fixed charge, without the borrower always being aware of it. You can find information on the Blueprint For Safety website that details the mechanisms of credit and their practical implications.
Creditworthiness assessment: what the reform imposes on lenders
Creditworthiness assessment is not new in French law. Credit institutions were already required to verify repayment capacity before granting a loan. The reform extends this obligation to players who were not previously subject to it, notably split payment operators.
In practice, the lender must analyze the borrower’s income, expenses, and existing debts before granting financing. The goal is to limit situations where credit is granted to a person whose budget cannot absorb the repayment burden.
The limits of creditworthiness assessment
This system relies on information declared by the borrower and on data available in the Banque de France files. A credit in progress with another institution may not be immediately visible. Field feedback varies on the actual effectiveness of these checks, especially for small amounts.
The reform does not create a centralized positive credit file in France. The absence of such a tool remains a recurring point of discussion among sector players. Without a comprehensive register, each lender has only a partial view of a borrower’s total indebtedness.
Rising over-indebtedness: factors that disrupt a budget
The 2025 report from the Banque de France confirmed a rise in over-indebtedness situations. This development reminds us that financial difficulty does not solely result from poor budgetary choices.
- Job loss abruptly removes the ability to repay, while credit deadlines remain fixed and due each month.
- A separation or divorce divides household income while maintaining or even increasing current expenses (rent, credits, children’s expenses).
- A health issue can generate unexpected expenses and a simultaneous drop in income, creating a double effect on the budget.
These three factors, often combined, show that over-indebtedness is more a result of life accidents than irresponsible management. Prevention involves having a safety margin in the monthly budget, what professionals call the “remaining amount to live on” after paying all fixed charges and credit installments.
APR and total credit cost: reading a loan offer without mistakes
The annual percentage rate (APR) remains the central indicator for comparing two credit offers. It includes the nominal interest rate, application fees, the cost of mandatory borrower insurance, and any additional fees. Two offers displaying the same nominal rate can present a very different APR.
The total cost of credit, expressed in euros, complements this reading. It corresponds to the sum of all interest and fees paid over the duration of the loan. The longer the duration, the higher the total cost, even if the monthly payment decreases.
What the APR does not say
The APR does not reflect the risk of variation in your future charges. It does not take into account inflation, which erodes purchasing power and can make an initially viable budget tighter over the months. It also says nothing about your actual ability to absorb a financial surprise during the loan term.
A loan with a low APR but a very long duration can cost more than a higher-rate loan repaid quickly. Comparing offers solely based on the monthly payment often leads to underestimating the actual cost of the commitment.
- The APR allows for comparing offers with each other, but not for assessing whether the credit is sustainable for your budget.
- The total cost in euros provides a concrete view of what you will pay beyond the borrowed amount.
- The repayment duration is the lever that weighs most on the final cost, more than the rate itself in many configurations.
The reform of November 2026 will strengthen the standardization of pre-contractual information, which should facilitate comparison between offers. Borrowers will have access to a more readable format, including repayment scenarios. It remains to be seen whether this increased transparency will be enough to reverse the trend of over-indebtedness, in a context where life accidents remain the primary factor for tipping.
