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Over the past few months, various amounts have been deducted through my Barclays debit card by someone fraudulently using my number to credit a Vodafone mobile phone. I cancelled my card and had new ones issued four times, but Barclays noted that all the deductions had been made using the original number. All the card changes have caused severe inconvenience, and the frauds have pushed my account further into overdraft. Barclays has refunded the deductions but I still want the extra overdraft interest I paid.
SC, Leeds
Several readers have reported fraudulent debits, usually on credit cards, from thieves funding mobile phones. Barclays confirms that transactions can still go through on a cancelled card if the amount taken is less than the amount below which retailers need not check with the issuer before processing the transaction.
'Hot card files', listing those lost and stolen, are sent to retailers but staff rarely plough through the list before accepting a card.
Barclays says the fraudulent deductions on your Connect card did not push you beyond your overdraft limit, which you use anyway, and that you incurred only a 50p extra overdraft charge. It acknowledges that this should be refunded as well and, for your inconvenience, is crediting your account with £25 in total.
Credit card debt: Will it die with me?
In my seventies with limited income, I sometimes think my credit card debts will outstrip my income and my capital. Someone told me that card debts die with you. Is this true?
VD, Broadstairs
Money you owe when you die must be repaid from your estate. Some debts take priority, such as mortgage and tax, but, if there is not enough to pay everyone, your debts are wiped clean.
A surviving husband or wife does not have to pay the other's debts, although the deceased's half-share of a house could be taken. This does not apply to joint debts, where you are both equally liable: the survivor must continue paying. Credit cards are different, though, because, even when two people share one card, it is not jointly held. One person is the cardholder and the other an additional cardholder; only the cardholder is responsible for the bill.
Pension puzzle: Must I pay more?
I work part-time for an education authority and co-run a small business; I have a pension with each. London Life says my personal pension is suffering 9 per cent initial fees, and I should either raise my monthly payments from £25 to £50 to cut the charge to 5 per cent, or cancel it.
I know I need to increase my pension contributions in some way but am confused. Should I take out AVCs, increase or cancel my London Life contributions, switch to a stakeholder pension when they're available, or forget those and invest in an Isa?
DW, Warley
You should certainly avoid paying so much. London Life says it imposes the high initial charge to discourage small contributions, but is reviewing its fees. On top of the initial charge, you pay 0.9 per cent on London Life unit-linked pension contributions and 0.5 per cent for the with-profits fund. Stakeholder pensions will cost at most 1 per cent every year, with no initial charge.
Your first decision is between some sort of pension contribution and an Isa. You get tax relief on contributions to a pension, but payouts are taxed, and you are committed to buying an annuity. Isas give tax-free income, and you can do what you like with your money. If you stopped the London Life contributions, you would face a confusing choice and should get advice on your particular circumstances from a financial adviser.
Tax-free saving: Tessa is trailing
Sixteen months ago, I opened a Skipton Tessa account. The interest rate has drifted down and is now 6.35 per cent. The Skipton Isa pays 7 per cent.
When I asked if I could convert the Tessa to an Isa, I was told I would have to close the Tessa, and Skipton would recalculate the interest at its ordinary account rate, 1.75 per cent. I thought that if you closed a Tessa, you simply paid tax on the interest.
SA, Leeds
Tessa providers can make their own rules on interest rates. Skipton says its leaflets made clear that closure is not allowed but, if you really had to, the Tessa would retrospectively revert to an access account. This effectively locks you in, although you would earn 4.35 per cent rather than the 1.75 per cent you thought.
Skipton admits its Isas pay more than Tessas to attract new Isa customers, but claims the differential is greater with other providers. In February, its Isa rate increased by more than its Tessa's, on the assumption that base rates would rise again a month later and the Tessa could fall into line. This has not yet happened.
Writeback: plane dealing
Two readers have told of losing
possessions which were in an airline's
control. This should encourage others to
fight firms which refuse to compensate
travellers for missing items.
MK of Birmingham writes: 'I had my bag
stolen in Cuba. I saw it offloaded in Havana,
but it did not reach the luggage collection
area. No one from the airline, Cubana, was
interested. I could not buy shoes or clothing
there. I am an extra-large size and there are
few shops in Cuba. I claimed on my insurance
and took Cubana to Birmingham County
Court for a ruined holiday. In May, I won ?500
compensation plus ?50 costs on top of my
claim from the insurer.'
CF of Beverley found a rare airline which
immediately accepted its responsibility: 'I
arrived in Durban to fly to Cape Town last
November to find that I had been put on a
later flight. Nevertheless, I booked in my
luggage. Later, I noticed that my electric
razor was missing. On my return to the UK, I
wrote to the carrier, South African Airways,
without much hope of success. I received a
sympathetic response asking me to buy a
new razor and send them the receipt. I did so
and was reimbursed.'
• Write to Margaret Dibben, Money Writes, The Observer, 119 Farringdon Road, London EC1R 3ER. Include a telephone number, but not SAEs or original documents. Letters are selected for publication and we cannot give personal replies. The paper accepts no legal responsibility for advice.
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