Minor claims meant major costs

I know car insurance premiums are increasing, but KwikFit Insurance Services has tried to up my premium by almost 250 per cent.

Last year I paid £350; the renewal form asks for £1,210. During the year, my car was broken into twice while parked at night, once outside my home and once outside a friend's. The total cost of the damage, £700, was less than the extra premium. Why do I lose four years' no claims bonus for two relatively minor incidents beyond my control?
JH, London

Your experience highlights the severe penalty for making two claims in one year.

Kwikfit acts as broker and says that if you had not claimed, your premium would have fallen to £339.

Even though you were not to blame, you are heavily penalised because the insurer, Fortis, has not reclaimed the cost from the thieves, making them 'no refund' rather than no-fault claims. It would be helpful if insurance clerks pointed out the risk when accepting small claims.

At Kwikfit's suggestion, Fortis has agreed to offer this option now. If you repay the £700, it will reinstate the no claims discount.

Timeshare resale nightmare

I own a timeshare with RCI. I decided to sell it and was approached by Trend Properties in Marbella who said it had a purchaser. I signed an agreement with Trend Properties and paid a fee of 160,000 pesetas (£630). The purchase price should now have been paid but all attempts to contact the company have proved unsuccessful.
IW, Penrith

The sale agreement showed an illegible signature for the purchaser, who had allegedly paid a 320,000 pesetas fee (£1,260) and £7,000 purchase price. But there were no contact details or address for the buyer or Trend Properties.

The European Timeshare Directive does not cover resales and unfortunately, Trend Properties did not join the Organisation for Timeshare in Europe (OTE), otherwise the trade association could have taken up your case. Its code of ethics bans members for soliciting fees from vendors by falsely suggesting that it has a buyer waiting, willing and able to buy the timeshare. It will still try to help if you write. OTE publishes a list of specialist solicitors: 15-19 Great Titchfield Street, London W1W 8AZ; email: info@ote-info.com. Tel 020 7291 0901 or fax 020 7291 0910.

When Amex does not do nicely

In July I paid my American Express credit card account in full as usual but Amex blocked my card when I tried to pay for lunch, claiming I had not paid my account. I gave details of the cheque and was told they would reactivate my card.

They did not and a few days later said they could not find the payment in their unreconciled accounts. In August I sent in my bank statement and the cheque as proof of payment. I have been £845 out of pocket for eight weeks and cannot get through to speak to anyone.
TB, Tonbridge

American Express asked you to stop the 'missing' cheque but now realises it had already cashed it. Amex admits it failed to warn you your account had been blocked. It has now refunded the £845 and sent £150 as a goodwill gesture.

Adviser who failed to advise

When I bought a flat in 1995, a financial adviser suggested a mortgage with Newcastle Building Society and an endowment with Winterthur. I decided to change to a repayment scheme only a couple of days later but the adviser failed to instruct Newcastle. I have now been paying an interest-only mortgage without endowment cover for five years. Newcastle agreed to pay £1,000 to my mortgage account and not charge for changing to a repayment mortgage.

Winterthur denies any responsibility and claims there was no evidence its adviser was at fault. If my mortgage had been set up correctly, I would have paid £4,500 off the capital.
KL, London

Winterthur says your complaint has been investigated and it was not guilty of mis-selling. That misses the point that someone failed to carry out your instructions, which has cost you money.

Take your complaint to the Financial Ombudsman Service on 0845 080 1800 or online at www.financial-ombudsman.org.uk.

• Email Margaret Dibben at money.writes@observer.co.uk or 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. The newspaper accepts no legal responsibility for advice.