Your problems

In May, my bank told my mortgage provider, Cheltenham and Gloucester, that I had cancelled my direct debit. I discovered that C&G had mistakenly switched another customer's bank details to my mortgage in March and, when it tried to take payment from that person's account, was rejected - leaving my mortgageunpaid in April and May. I was not told.

In March I had applied for a £5,000 top-up mortgage but heard nothing. Eventually C&G told me it would not make an offer while my account was in arrears. It had given me a bad credit record. After many phone calls trying to put this right, C&G took the two months' back payments earlier than agreed but wrote to an old address to tell me. A day later it took a further three months' payments, sending my bank account £940 overdrawn.
AK, Manchester

Unreserved apologies, disappointment that some staff were less than helpful, but no adequate explanation for the catalogue of disasters. There is not much else that C&G could say. It assumed you would want to move your mortgage elsewhere and agreed to waive the early redemption charge. Instead, as you have decided to stay, it is discussing a new mortgage deal with you and sending £500 to underline its regret for the distress and inconvenience you suffered. It has corrected the information on your credit reference agency files, although I recommend you check these in a month's time to make sure it's been done.

Search for a big, simple mobile phone

My father's O2 mobile phone number has been withdrawn. As he has arthritis, he needs decent-sized buttons and a basic handset. Where can he buy a similar phone?
MC, Tunbridge Wells

Large, basic mobile phones are hard to find these days but O2 believes the Nokia 3220 might be suitable for your father. It has sent him one free with a new Sim card and credited £15 to it.

02 credit lost and found after supply cut

I have an O2 phone and discovered that the service had been stopped on 1 July. I had not seen the ads, so rang O2. The operator told me the £20 credit on my pay-as-you-go phone was lost and I could not get it back.
NL, Linlithgow

Of course credits should be refunded and it is disturbing that several readers have been told otherwise. O2 has sent you a cheque for £20, and a further £10 compensation for causing annoyance.

... and what is your favourite colour ?

Halifax asked what I wanted to do with the money from my matured Reserve Bond. I phoned and, as requested, gave the account number, my mother's maiden name, my date of birth and address, as forms of identification. The man then asked for our Halifax mortgage details. My husband found them and gave the information but the man said he would deal only with me. My husband told me the details which I relayed over the phone. The man said this was not good enough and I needed to know the details myself.
KB, Radlett

Halifax says it had not recorded this phone call so cannot say whether the questions were in line with procedures. I think your account of the conversation makes it quite clear. Your new investment would be registered with the same details as Halifax already had on file for you. Common sense says that reciting your mortgage details off the top of your head was irritatingly unnecessary, given the identity proof you had already provided. Someone needs retraining.

Safeguard against over-protection

In April, I borrowed £4,000 from Virgin with no repayments for four months. As I knew I would repay the loan before then, I did not want protection insurance. After being bullied into taking it and 100 per cent reassured that it wouldn't cost me anything if I settled the loan early, I was shocked to find I had to pay £266 for the interest accrued since April plus charges for insurance. To top it all, they also charged me £25 for a late payment on my credit card. I am overcharged for paying early and for paying late.
AA, South Croydon

Repaying the loan before the end of the four-month concession does not mean you avoid interest charges in that time. It was not an interest-free period. But charging you for payment protection insurance is more of an issue. The Virgin loan is run by MBNA, which insists that you were not mis-sold the policy because you were under no obligation to buy it, had signed the application form sent after the phone conversation and did not complain at the time. That overlooks the sales pressure you suffered. MBNA does now accept that you never wanted the insurance and has refunded the £186 premium. As an extra gesture, it has cancelled the £25 late payment charge on your credit card even though this has nothing to do with the loan.

· Email Margaret Dibben at money.writes@observer.co.uk or write to Margaret Dibben, Money Writes, The Observer, 3-7 Herbal Hill, London EC1R 5EJ 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.