A Question of Money

It cannot prove this, because the last entry in the passbook is July 1986 and the bank does not have detailed records going back that far. It does, however, point out that you opened a Special Reserve account in 1988 (which you closed five years later) and it could well be that the savings from your passbook were transferred to this account.

As a gesture of goodwill, and in view of the inept way it handled your earlier query, it is giving you £75. I realise, however, this is not wholly satisfactory from your point of view.

Many people have experienced similar problems. Most banks and building societies abandoned the passbook system for savings back in the 1970s or 1980s but did not require that the old books were handed in or cancelled, leaving customers with the impression that they still had savings that in reality were not there.

At present, a bank is obliged to keep a record of all “live” accounts indefinitely, but it does not have to keep records of closed accounts for so long. You are entitled to make a complaint to the Financial Ombudsman Service, but in the absence of any other evidence, I’m afraid it is unlikely to uphold it.

Gallery is billed for two electric meters

CB writes: We opened a small art gallery last August and after taking advice decided to get our electricity supply from Bizz Energy. When we took over the premises, there were two meters installed, one of which was not in use. Bizz Energy billed us £552 for estimated use on this unused meter and, despite numerous phone calls, it has still not refunded this money.

You now have your money back and a letter of apology. It was, said Bizz Energy, purely a result of human error on its part. “We do try really hard to get things right,” said a spokeswoman, who had managed to sort this out in the middle of her family holiday in Devon. “Unfortunately we did not realise we had initially sent the discontinuation request to the wrong distribution company.”

Something phishy about Halifax e-mail

RC writes: I recently received the attached e-mail. Is it a scam? I’m concerned because I do not have any accounts with Halifax any more.

The e-mail was headed “Important Security Alert” and purported to come from Halifax. It requested that, as part of the bank’s “security measures”, customers should confirm their banking details by e-mail. Your instincts were absolutely right: this is nothing more than a scam known (I’m not sure why) as “phishing”. Genuine banks will never, ever, ask people to confirm their banking details in this way.

Unfortunately, there is only a limited amount that can be done about rooting out such scams entirely, as many emanate from overseas. All major banks have fraud departments which are engaged in a constant war against phishing. You may be able to help in this battle by sending the suspect e-mail to Halifax, which can then get in touch with the relevant internet service provider to get that address closed down.

Overcharged by a bank? Join the club

AD writes: Last year I took over as treasurer of a club. Our bank account is with Barclays and in April this year I wrote asking why we had always been charged the business tariff, despite being a club. While my local branch has been helpful, I have been unable to get any response from the head office.

Barclays has no explanation as to why you were originally charged the business tariff for the account; this was decided so long ago, it no longer has the paperwork. It accepts that whatever the situation was then, these days there is clearly no need for you to be on a business tariff.

The bank has already refunded you the £201.29 it had charged this year and has now agreed to refund a further £413.65, which in effect wipes out all the charges on the account since 2003. ()

Delay left me with exchange rate loss

NH writes: I spend six months of the year in Singapore and six in Britain. In May, I returned to England for three weeks and visited my financial adviser, AWD Chase de Vere. I had already been in contact via e-mail, as I wished to liquidate some of my funds and needed to know exactly which documents I needed to have with me to be able to do this while I was in the UK. It was decided to sell my holding in a Clerical Medical International (CMI) fund, and I was originally told I would receive the proceeds on June 12. However, the funds did not arrive until July 7, and thanks to movements in the exchange rate between the Singapore dollar and sterling since then, I have lost out to the tune of more than £600.

You then complained to Chase de Vere but it initially washed its hands of this, blaming CMI for the delays. After I got in touch, it maintained it was not at fault because CMI had changed the rules, mid-transaction, on what documents it required. However, Chase de Vere has agreed to meet your loss, which it calculates at £230.90. As a goodwill gesture it is also offering you £250. This seems reasonable to me; your estimate of £600-plus assumed the funds could have been liquidated instantly, which is usually not the case.

Counter argument wins cheque refund

CS writes: Last year I was going to make a purchase on Ebay for £544. I was asked to pay by a counter cheque and went into my branch of Abbey to arrange this. Later, I changed my mind about the purchase and destroyed the cheque, thinking that because it had not been cashed, the money would remain in my account. But on checking my balance, I realised the money was not there, and the bank told me I should have returned the cheque to the branch. I have tried to sort this out but have got nowhere: does this mean I am £544 down because of my naivety?

Counter cheques are banker’s drafts and equivalent to cash, which means the money comes out of your account straight away. By the time I approached Abbey, it had already posted you a cheque so that you could re-credit your account with the sum, but realised that you had not cashed this. It has now stopped the cheque and credited your account directly with the missing money and written to you to explain all this.

In view of the fact that it did not ensure that you understood how counter cheques worked, and the length of time it has taken to sort this out, it is also sending you £50 as a goodwill gesture.

PS My thanks to MJ, whose recent letter to me showed how A Question of Money can help those who don’t even write in to the column. After seeing a question from a reader whose Norwich Union with-profit bond had imposed an unforeseen market value adjustment, and the result this column achieved for her, MJ was inspired to take up the cudgels on behalf of his elderly mother-in-law, who had been sold a similar bond, and was equally hit by an MVA when she surrendered it in 2004.

“Your original letter urged people to adopt a DIY tactic, complaining directly to the Financial Ombudsman,” says MJ. “I decided to follow your advice, and the result was that she has been refunded a total of £8,400 — so thank you.”