A bank has the right to refuse to open a bank account. There may be several reasons for refusing to open an account, but the bank is not obliged to explain the reasons for its decision. Companies domiciled in France can apply for free basic banking services from a bank designated by the French State Bank (Banque de France), provided the company does not already have a deposit account.
Refusal by a bank to open an account
If a bank refuses to open an account for a company, it must provide the company with a written statement or letter of refusal to open an account.
In the event of refusal, it is possible to obtain the opening of a business account by applying to a branch of the Banque de France for the right to an account. The right to an account enables entrepreneurs to ensure the continuity of their business.
For this purpose, the company can either visit a branch of the Banque de France or send its request by post with acknowledgement of receipt, together with all the documents required.
On receipt of the supporting documents, Banque de France automatically designates a bank, which is obliged to open a deposit account within 3 days of receiving the required documents.
The bank consults the Banque de France’s Central Cheque Register and the Personal Credit Incident Register (FICP). The aim is to check that the entrepreneur or his associates have not encountered any banking difficulties in recent years.
Basic banking services
Even if the entrepreneur is banned from banking, the bank designated by the Banque de France will open a deposit account in the company’s name, with the following free basic banking services:
– Account opening, maintenance and closure
– 1 change of address per year
– Issuance of bank identity statements (RIB) on request
– Direct debit and collection of bank transfers
– Monthly statement of account transactions
– Cash transactions
– Cheque cashing
– Payments by direct debit, interbank payment orders or bank transfer
– Remote account balance inquiries
– Over-the-counter cash deposits and withdrawals
– 2 bank cheque forms per month
– Pre-authorized payment card
Overdraft authorization is not available.
Account closure by the bank
If the account holder wishes to obtain services other than basic services, and the bank accepts, these services will be invoiced in accordance with the conditions set out in the agreement entered into with the bank.
If the bank that opened the account wishes to close it, it must give the customer 45 days’ notice, then inform Banque de France, giving the reason for the closure.
In this case, Banque de France will, if necessary, designate a bank where another business account can be opened under the same right-to-account procedure.
