Don't take a punt on currency refunds

During a visit to Ireland in February, I bought a watch using my Co-operative Bank Gold Visa card. I found that the watch was faulty and returned it the next day for a refund. When the transactions appeared on my statement, the refund was less than the debit by an amount that was too much to attribute to currency fluctuations.

Initially the bank claimed the discrepancy was due to currency fluctuations, but later admitted that the 2.75 per cent charge had not been refunded. They have now reimbursed the discrepancy but I think this sort of thing should not happen. They are also ignoring my requests for compensation for the time I spent bringing it to their attention.,br>• PW, Guildford

• Holidaymakers should be alert to the danger of foreign currency refunds on their credit cards. Banks promise refunds will be the same in sterling as the original cost, but inevitably statements show a different figure, partly because of exchange rate fluctuations but more because banks deduct, and fail to refund automatically, the fee for foreign currency transactions. Some blame Visa or Mastercard; others say they have no way of identifying refunds. Customers do not get their full refunds unless they contact the banks to ask for the money. This is highly unsatisfactory and customer pressure may persuade banks to improve the service.

Co-op says it reimbursed your missing £1.25 immediately you phoned so, even though the bank initially gave you the wrong explanation, I think your case for compensation is weak.

Name on the loan causes concern


I have an unsecured loan with Abbey National and recently wanted to increase it. The adviser agreed that the loan was being repaid by direct debit from my bank account, but said he could not talk to me about the loan because it was not held in my name. Moreover, if I ceased payments, I would be in no way liable for it. Eventually I discovered that the loan was in my ex-husband's name.

He has never banked with Abbey, but does have a mortgage with them. I asked Abbey to dig out the original paperwork but it refused, saying such investigations can be carried out only at the request of the person named on the loan account.

The adviser suggested I sort it out with my ex-husband, but I am not in contact with him. Even so, I cannot bring myself to cease payments and let them chase him for a loan that is not his. What can I do to convince Abbey that I am being honest?
S-LW, Bath

• There is nothing more you could have done. Abbey admits that most customers in these circumstances would simply have stopped making the repayments. The bank would have chased your ex-husband and, when he denied responsibility, presumably finally dug out your application form. But by then you could be marked down as a defaulter.

At Money Writes' request, Abbey did look out the original documentation and discovered that your unsecured loan had been wrongly bundled with your ex-husband's mortgage. This has now been untangled and Abbey confirms that it is happy to lend you the extra money you want. It is also sending you £50 compensation.

Releasing shares without probate


My father, who died recently, owned his bungalow and savings jointly with my mother, the sole beneficiary. No need for probate, we thought. Unfortunately, he had bought electricity shares on privatisation and did not sell them. The registrars for National Grid are happy to release the 56 shares without probate but Computershare, the registrar for Scottish & Southern, in which he had 180 shares, refuses to do so when the total estate exceeds £20,000. My 87-year-old mother now has to go to the expense and effort of obtaining probate, for little net gain, because of this arbitrary limit.

Many people of modest means bought these shares and I am concerned that this could be a problem quite unforseen when privatisation was popular. Am I unreasonable in wishing that Computershare would adjust its procedure?
LC, Lyndhurst

• The Probate Office says there is no set figure for the size of estates on which assets can be released without probate. Institutions can choose their own level, although £5,000 is often accepted and this is the figure that banks and building societies usually take when agreeing to release funds without probate. National Grid releases shares held by estates worth less than £234,000, which is also the starting point for inheritance tax.

Scottish & Southern says it pitches the level at £20,000 because this follows the Association of Chartered Secretaries and Administrators' guidelines. However the company has agreed to treat your father's estate as a special case and is getting in touch to say it will accept a letter of indemnity instead of insisting on probate.

What's the word on Wesleyan?


As the result of a newspaper advert, last year I took out a Guaranteed Growth Bond with the Wesleyan Assurance Society

I was informed by a representative of Wesleyan Assurance Society that the company outperformed most other societies but have never seen it recommended in the newspapers. I have no doubts about my decision, but is it a reliable company?
JM, Brighton

• Getting an independent view of insurance companies is difficult. You can make sure it is properly authorised by phoning the Financial Services Authority (FSA) on 0845 6061234.

The FSA will publish impartial comparative information on pensions, endowments, investments and mortgages in the first half of next year. These will show the main features of each product and how different providers compare for price and flexibility. The FSA says it will not include past performance tables because it does not believe that is a good guide to future performance - but companies and advisers furiously disagree.

An independent financial adviser, if you use one, may give a view, although few keep a close eye on every insurance company.

Read Which? magazine surveys and specialist personal finance magazines, including ones such as Money Management, aimed at financial advisers. Look for past issues and special reports on this subject. Wesleyan is a small and good mutual company.

Interest fixed but not guaranteed


I see that permanent interest-bearing shares quote quite high interest rates. I am a reasonably cautious investor, aged 72, looking for short-term investments lasting one to three years.The rates on these seem attractive, but I have no idea what they are. Could you please enlighten me?
PN, London

• Permanent Interest Bearing Shares, or Pibs, are loans, similar to undated gilts, but issued by building societies instead of governments. They are not shares, nor are they building society savings accounts.

Being permanent means that they carry on indefinitely, and building societies never have to repay the loan unless the society is taken over or wound up. By contrast, dated gilts are repaid on a certain date.

Pibs-holders are repaid only after all other debts have been repaid in full, so there is a chance you may get nothing from a society in deep financial trouble, but it is likely it would have been rescued before then.

If the building society becomes a limited company, its Pibs convert from shares to perpetual subordinated bonds, which can have a higher credit rating and are thus less risky. The changeover makes no difference to investors.

Pibs investors earn interest which is fixed but not guaranteed and there is the small risk that societies may miss an income payment which they do not have to make up later.

• Write to Margaret Dibben, Money Writes, The Observer, 119 Farringdon Road, London EC1R 3ER and include a telephone number. Do not enclose SAEs or original documents. Letters are selected for publication and we cannot give personal replies.