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Current Account Switch
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Altior said:I'm an accountant so to me a debit balance is asset positive. Perhaps as it's terminology I have used practically every working day. Yes that extra letter is all important, but if it read 'debt', that would have been be more logical! Even better if they had just written overdrawn.
My reasoning is that I think of debit is what is due or owed. I read that letter is it the bank was due or owed anything, but that's just my reading of it.
Let's Be Careful Out There2 -
I accept that technical accounting terminology may be different but in common parlance a current account being 'in credit' would signify a positive balance and therefore a debit balance would mean overdrawn - given the context of a current account switch, it would be pretty odd if the ceding bank was instructing switchers to clear down a positive balance while remaining silent about how to deal with an overdraft!4
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Altior said:I'm an accountant so to me a debit balance is asset positive. Perhaps as it's terminology I have used practically every working day. Yes that extra letter is all important, but if it read 'debt', that would have been be more logical! Even better if they had just written overdrawn.I think that's standard, they all say to settle overdrafts i.e. debit balances before a switch.1
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Yes that was my conclusion after taking the screenshot and reading the letter again. Basically as it does not discuss clearing a credit balance! I appreciate that the majority of people might not interpret it like I did, but it could be written with less ambiguity. Still seems jarring to me to couch a liability as a debit balance!1
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Altior said:Here's the letter
A debit balance is when you are overdrawn.
A credit balance is if you are not overdrawn.
May be Lloyds should have explained this.
It certainly is not necessary to withdraw your credit balance before a switch.1 -
@Digital_Payback
https://www.currentaccountswitch.co.uk/The Current Account Switch Service - your guarantee to a successful switch
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friolento said:Altior said:Here's the letter
A debit balance is when you are overdrawn.
A credit balance is if you are not overdrawn.
May be Lloyds should have explained this.
It certainly is not necessary to withdraw your credit balance before a switch.
Lloyds wrote 'if your account has a debit balance'. Not theirs. If my account has a debit balance, it means I have a positive asset. It's a very poorly written line in my view, which I assume is sent out to thousands of their customers.1 -
I just leave this here (and won’t respond to claims that CHATGPT got it wrong)
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If you had a personal balance sheet for your own finances (I do), and you have a positive balance on your current account, where would it sit?
(mine are listed under current assets).0
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