Crédit Mutuel launches the 1 euro account

Daniel Baal, CEO of Crédit Mutuel Alliance Fédérale, has announced a major measure to help the most vulnerable people cope with rising prices. The aim is to go beyond the existing measures relating to regulated accounts by lowering the rate on regulated accounts to 1 euro and eliminating incident fees.

FACTS

• The banking group will launch Facil'Accès 1€, a bank account with management fees reduced to 1 euro net per month, without incident fees.

• Crédit Mutuel's package covers an unlimited number of SEPA direct debits and bank cheques, as well as a second bank card at no extra cost in case of a joint account.

• In addition, an authorised overdraft of up to €225 can be added to this offer.

• This tariff will be applied from 1 August 2022.

• This offer is aimed at the 50,000 customers who currently benefit from the specific regulated offer for people in a situation of financial fragility.

• Until now, this offer was charged at EUR 3 per month, with incident fees legally capped at EUR 20 per month and EUR 200 per year.

• The cost of this operation is 1.2 million euros per year, not counting the absence of charges for incidents.

CHALLENGES

• Establish a clear positioning in favour of vulnerable populations: Crédit Mutuel and its subsidiaries, such as CIC, had already struck a blow last autumn by abolishing the health questionnaire for its most loyal customers wishing to take out a property loan. The status of a company with a mission, a status which commits us to be there to work for a more united, more sustainable society. (...) It is about showing our solidarity with the most fragile customers", explains Daniel Baal.

• Re-launching the debate on bank charges: Since 2014, French banks have been obliged to systematically offer customers in fragile situations this 3 euro per month offer, for which incident fees are capped at 20 euros per month and 200 euros per year. According to the French Banking Federation (FBF), the results are convincing: nearly 700,000 customers have chosen to benefit from this specific offer in 2021, i.e. an 80% increase in the number of holders since 2019. Incident fees are automatically capped at 25 euros per month. These measures have made it possible to reduce the average annual amount of incident fees by 17%. 4.1 million individuals now benefit from a framework for bank incident fees. The Minister of the Economy, Bruno Le Maire, who had opened a round of discussions with economic actors before the legislative elections in order to "fight against inflation", asked the banks for new efforts at the beginning of June.

PUTTING IT INTO PERSPECTIVE

• In the United States, too, the subject is at the centre of discussions. A dozen major banks have recently reduced or even eliminated overdraft fees. Democratic lawmakers continue to push for legislation that would curb the practice nationwide.

• Last June, Bling proposed a cash advance concept for individuals that presents itself as an alternative to bank overdrafts. Since then, the application has also been criticised by the association UFC Que choisir for its hidden fees and usurious rates.

• Facil'Accès 1€ is the 15th commitment of Crédit Mutuel Alliance Fédérale as part of its mission statement.