French Bank Loses Interest and Fees After Judge Spots Missing Overdraft Authorization
In France, a woman born in Morocco and her husband were being sued by their bank over an overdraft of nearly 7,800 euros. Neither appeared in court in Strasbourg. However, the judge found an irregularity that deprived the bank of its interest and fees.
Banque Populaire Alsace Lorraine Champagne was seeking exactly 7,788.22 euros from the couple, with interest at 8.51%. The account, opened in November 2020, had remained continuously overdrawn since August 2023. After sending several formal demands for payment, the bank launched legal proceedings in June 2025.
On Bladi.net : Paris Court Erases €24,544 in Debt, Ending Seven-Year Repayment Plan
The two customers, whose wife was born in Morocco in 1997, did not attend any of the hearings and were not represented by a lawyer. The bank, for its part, maintained its claims through the final hearing in September 2026.
But at the hearing on January 20, the judge had raised on her own initiative a possible irregularity concerning the interest being claimed. An examination of the documents would prove her right.
No overdraft authorization to be found
The bank claimed it had granted the couple an authorized overdraft of 7,600 euros. However, the account agreement made no mention of an authorization for that amount. Nor was there any document signed by the customers confirming the agreement.
The overdraft had continued for more than three months. In this situation, the bank was required to offer another form of credit and comply with certain information requirements. It did not provide the documents needed to prove that it had done so.
In its ruling of October 9, 2026, the court therefore denies the bank the interest and fees associated with the overdraft. The debt is reduced to 6,852.34 euros, 935.88 euros less than the amount originally claimed.
The judge also rejects interest at the statutory rate, finding that applying it would allow the bank to recover an amount too close to the interest it has just been denied.
The customers’ absence therefore did not prevent their case from being examined. In another recent case, a couple born in Morocco were even considered absent after being sent to the wrong courtroom, before being granted a new hearing.
In Strasbourg, the spouses remain jointly and severally liable for repaying the 6,852.34 euros. They must also pay 300 euros in legal costs and bear the court costs, while the bank had initially sought 1,000 euros for those costs.
