A friend arranged to pay me pounds 2,500 via PayPal for scuba diving equipment that I sold him. I was charged pounds 85.20 by PayPal. Its fees policy states that receiving funds is free for a personal account, or charged up to 3.4 per cent for a Premier/ Business account. But my account is for personal use only. I feel duped. KS, Berkshire.
PayPal is an online payments system, operated by the internet auction company eBay. It is free to open a PayPal personal account, and the PayPal website states it is free to receive a funds transfer from another person, providing that transfer is not funded by a credit card. But PayPal also charges fund recipients a fee if the transfer is funded by debit card; PayPal tells us this is specified in its detailed terms and conditions. As this is not very obvious, an individual charged for a debit card transfer may be able to challenge this and we have told PayPal we believe it should make its terms more transparent. In the case of your transaction, it is not clear what method of payment your friend used. He told you that it was conducted by bank transfer; PayPal tells us it was financed by credit card, and your friend declined to answer the question when we asked him. Your friend's reticence may tell you what you need to know.
My fixed-rate mortgage deal soon expires. Should I roll up my mortgage and credit card debts into a One Account with Royal Bank of Scotland? I understand its interest rate is 5.85 per cent and I would have to repay about pounds 100 more than I currently pay each month. PO, Edinburgh.
Ray Bolger of Charcol brokers says: "The interest rate on One Account's current account mortgage depends on the LTV [loan to value]. The lowest rate of 5.85 per cent is available for LTVs up to 50 per cent. There are seven interest rate tiers, with the highest, 6.7 per cent, available up to 99 per cent LTV. All rates are higher than on One Account's fully flexible mortgage, which offers better value. Offset mortgages work on the same principle as current account mortgages and are available at Newcastle BS, Coventry BS, Bristol & West and Scottish Widows at rates lower than the current account mortgage.
To justify using the One Account current account mortgage, you would have to have large savings compared with the size of the mortgage, or a volatile income, or both. But the benefits can be achieved more cheaply with the right offset mortgage, or with a fully flexible mortgage. Your credit card borrowing could be included in most types of remortgage. Your first decision is whether you want a fixed or variable rate. Both are available with an offset mortgage, but the rates are typically 0.5 per cent higher than on ordinary mortgages."
I asked Norwich Union to convert my three Section 32 pensions into a single annuity, based on a quote it provided. Three months later, I still await my first payment. Norwich Union has wrongly calculated the protected rights value, widow's portion and guarantee. To make matters worse Norwich Union reduced annuity rates in August, so I will get less per annum - and the long-term fixed interest rates have fallen, so the tax-free cash will earn less. My IFA and I have been unable to get Norwich to resolve this. AE, by email.
NU apologises for the poor customer service it has provided. It has agreed to revert to the original quote, backdated it, paid interest on the tax-free cash from August, and maintained all the guarantees and widow's portion as originally offered.
DBS Assurance sold me a Legal & General endowment policy in 1993 to cover a loan of pounds 32,500, which is now projected to fall short by pounds 9,500. I cannot afford this loss. What can I do? JD, Leicester.
DBS Assurance has become part of the Sesame network of IFAs. We arranged for Sesame to consider your formal complaint of mis-selling on the grounds that you say you were not advised that the endowment was a share-based product, with a risk of not meeting its projected return; and that you were not advised it contained life cover that was not relevant to your then needs as a single person.
It took several months for Sesame to consider your claim, which it has rejected, on the grounds that its paperwork does not confirm your version.
The DBS salesman recorded that he advised your then fiance that an endowment was an investment based on shares.
In the company's fact find, signed by your fiance, it was recorded that your joint attitude to risk was "balanced".
Sesame says that the client agreement form "clearly indicated" there was a risk of the endowment under-performing. It adds that it was a requirement of your mortgage lender to have life assurance.
The Financial Ombudsman Service (FOS) would consider other factors, including your understanding of financial products, your income and whether you previously had savings. We suggest you lodge a complaint with the FOS.
I face a shortfall of pounds 5,000 on two endowment policies that mature in 2009. I am claiming compensation for mis-selling on both, but am anxious the potential deficit should not get larger. Should I start putting money away into an Isa to cover the shortfall, or can I convert my recently arranged interest-only mortgage into a repayment mortgage? If I do this, will I have to pay much in extra charges? DO, Derry.