Nat West Bank Loan

[fruitsalad]

If a loan is taken out to pay off an old loan and then balance of new loan is set up in a new loan account why would it be showing the balance amount but with a minus against the amount.

[Peter Pedant]

a loan to pay off a loan.....

really really bad news

I hope this is another of frooties hypothetical questions

[ubasses]

I am not sure what you are describing, but normally you would take out a new loan for £x on a new loan account. The total amount would go into your current account, that account would then be debited with the total outstanding on the old loan and the old loan closed with a nil balance as fully repaid.

[Peter Pedant]

hi you base

I couldnt work out if the negative was under the old loan to show the loan had been paid off
kinda 100-100 means no deficit in that account now

or else it was the first entry on the second account (!) -100 to show she didnt have a credit of 100 to spend but was already in debt for 100

[fruitsalad]

Yes PP it's not my loan, but I was ask why, if loan was approved yesterday old loan has been paid off the balance of new loan is showing in a new loan account, but with a minus against it, I suggested to said person maybe it doesn't clear until next working day, which in this case would be Monday.

[Old_Geezer]

I'd have thought that showing money owed as negative, would be a valid system.
Probably need to ask the lender to explain.

[Islay]

Natwest does not update again until Monday night so it will be Tuesday before it is showing as correct.

[fruitsalad]

Islay oh I see, I thought they updated overnight every night.

[Islay]

No unfortunately not, so the balance on your screen may not be correct.

so for example mine currently says I have xxxx balance but xxxx available, but it does not show in transactions what I have spent since Friday.