French banks tighten rules on third‑party savings transfers and overdrafts

French banking institutions have begun enforcing stricter rules on two consumer‑finance products. Transfers from a third party into a Livret A, LDDS or Livret Jeune are now blocked; the practice, once common for grandparents gifting money to grandchildren, is rejected by an increasing number of banks to improve traceability and comply with European anti‑money‑laundering standards.

In parallel, a new regulatory framework will take effect on 20 November 2026, extending consumer‑credit protections to current‑account overdraft facilities. Overdrafts will be treated as short‑term credit, with banks no longer obliged to grant them and required to offer an amortizable consumer‑loan if a negative balance persists for more than three months. The changes also aim to make costs clearer, applying the same disclosure rules as for other consumer credit products.