Unwanted credit for windows cost an extra ?10,000

A Coldseal salesman quoted £10,000 to install windows in our bungalow. He could tell from our response that this was out of our range.

He tapped out figures on his calculator, mumbling about discounts and special offers, and came up with £8,500 cash. We wanted to pay cash but he said we may as well keep the money in the bank and pay by standing order. If we chose Coldseal Goldcard credit, the price would be £6,630. We were asked to sign a credit agreement with First National Bank 'as a safeguard' but he said as soon as the installation was completed, we could cancel the direct debit to First National and pay by standing order over 24 months.

When we tried we were told that Coldseal had no knowledge of the instruction and we were committed by the credit agreement to pay £16,926 over 10 years. We contacted First National Bank, which said that by law it was under no obligation to honour a cancellation request but, as a gesture of goodwill, would cancel the account if we paid £6,630 plus a £165.75 cancellation fee.
KC, Bristol

First National says its home improvement loans should be offered only to people who want credit. It insists that the terms were clearly explained in the agreement and that you could have changed your mind during the cooling-off period. That overlooks the fact that you acted on the salesman's advice, which was nonsense.

So, too, was the assertion that you had no legal right to cancel. First National confirms that you have a statutory right to repay a loan early. It says that charging you only £165 left you well off as, in effect, you paid £165 to cut the price of your windows by £1,800. Coldseal says the salesman no longer works for the company, but it admits selling is geared towards promoting Goldcard over cash as it includes extra services.

As a gesture of goodwill, and without admitting guilt, Coldseal has agreed to refund the £165 you paid for credit you did not want.

No-claims bonus: Late running

My car insurance with Vauxhall has increased from £416 to £741, partly because my no-claims bonus has been withdrawn. No action has been taken since a truck rammed our caravan in Belgium last May. We replaced the caravan with the insurance money and had the car repaired, but Vauxhall has done nothing to recoup the no-claims bonus from the Belgian guilty party.
DJ, Buckhurst Hill

No-claims discounts are refunded only when your insurer receives the money from the driver responsible for the accident. Your Vauxhall policy is underwritten by Norwich Union, which insists it has been trying to recover the cost from the other driver's insurer but says it takes longer to deal with overseas companies.

Norwich Union admits the delay is unacceptable and is immediately reinstating your no-claims discount.

Pension problem: Wound up

My employer went into administration last November and I have been trying to get information about my pension. I could not speak to the former trustees. In February the administrator, KPMG, sent the name of an independent trustee but the trustee said it would be weeks before it could give me any information.
DM, Penarth

You have highlighted a gap in pensions legislation which can leave pension scheme members stranded for years. The length of time taken to wind up final-salary pension schemes when companies cease trading is disgraceful. Members are entitled to information but it can be slow and patchy. Pri mary legislation is on the way to strengthen the regulator's powers, but it is unlikely to arrive before next April. Even then it will apply only to schemes that have already been in wind-up for some time, perhaps seven years. Opas, the Occupational Pensions Advisory Service, publishes a leaflet on winding up pension schemes on its website www.opas.org.uk

Penalty: Loan moan

We had a Woolwich mortgage, tied until January 2002. Last year my husband was transferred to the Midlands. The Woolwich said that if we took another loan, the redemption penalty would be refunded. With my husband's relocation package, we needed £15,000. The Woolwich agent said we would not get any refund on such a small amount so we should borrow £30,000 on an open plan offset mortgage and use the extra to buy a car. When we claimed the refund, we were told it applied only if we had taken an identical loan. I have written countless times to the Woolwich, mostly without reply.
DW, Burbage

The Woolwich says head office has received an unprecedented volume of correspondence recently which is why it has not been replying more promptly. Its investigation confirms that you were wrongly told you would avoid the penalty, so it is refunding £1,162.50.

Writeback

The Woolwich is not the only institution that is
slow to communicate. SS of London reports: 'I
applied to the internet bank Smile on 24 March
for a student current account. The website says
acceptance takes only a few minutes but I did not
receive the decision until two days later. I then
had to send in documents which, four weeks after
applying, they admitted they had lost.'

ES of Hemel Hempstead: 'I applied for a
Tessa-only Isa with Birmingham Midshires on 4
April. I have still not received any
documentation.'

CM of London: 'In early January I responded to
Halifax's adverts promising 4 per cent on current
accounts "as easy as signing my name". In late
April, I was thanked for my 'recent' application
which would take eight weeks to process. It will
have taken over six months to open the account.
Halifax has offered ?25 compensation if I wish to
withdraw.'

• 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.