Base' behaviour on interest rates

In June 1998, I borrowed £5,000 from First National Bank. On the credit agreement, the double glazing salesman wrote the interest rate at 23.8 per cent (1.79 per cent a month) but said the finance company would confirm the exact figure.

First National wrote in November that its base rate was 12 per cent, so this was what I thought I would be paying. There have been several rate changes since, but every time First National advised me of these, it only ever showed the base rate. I was never told that I was actually paying above the base rate. I believe this deception has cost me £685.
HT, Farnham

• The agreement you signed with the double-glazing salesman, acting for First National Bank, shows the APR but not the base rate. The next communication, direct from the bank, came five months later and said 'our base rate today is 12 per cent' without mentioning an APR. The bank claims this is logical because 'APR is material only up to commencement of the agreement', while base rate is relevant 'only after the agreement takes effect'. You were never told that you would pay an amount above base rate, and were never shown both figures at the same time.

The Finance & Leasing Association's code of practice requires lenders to use plain English and clearly explain terms and conditions. First National denies misleading you over interest rates, even inadvertently, but you should complain to the Association that you could not understand First National's documents nor calculate the exact rate of interest payable when rates changed.

Dotcom shares: A real clubbing


I am chairman of an investment club currently trading in a Charles Schwab Market Master Investment Club account. On 17 April, I ordered £4,000 worth of shares in On Line and was quoted 777 shares at £ 5.15 each. When I received confirmation, Schwab had charged £6.30 for 635 shares. I checked the price via Yahoo and by Teletext and the highest price I saw was £5.31. The shares closed on the night of the 17 April at £4.95, and yet Schwab executed our deal at 8 am the following morning at £6.30. Schwab said it checked the price with Reuters and it was correct.
PD, Durham

• Because you did not place a limit on the price you were prepared to pay, you have been caught by the extreme volatility of dotcom stocks.

You placed your order 'at best' on the Monday, but the price had jumped by the time Schwab executed the order the following morning - simply because the market makers marked up the price of On Line shares. Market makers' job is to make profits for their employers. So, like a street trader selling flowers on Mother's Day, they set their prices at the level they think they can achieve. When a company's shares are tipped in a news paper, or the company makes an encouraging 7am announcement, market makers increase the price.

Pension closure: Foreign affairs


In 1969 my employer, Star Shipping, arranged a pension for me with Legal & General. I was domiciled in Japan at the time and had no residence in the UK. Two years later, Star Shipping transferred me to London and the pension continued, all the premiums being paid from Norway.

In 1982, they transferred me to the US, and I was told by L&G's agents that the pension would have to be closed if I stayed out of the UK for more than two years, which I did. Was it legal to close the pension and, if so, why was it accepted in the first place? The Star Shipping pension trustees have no knowledge of any responsibility, and Legal & General says it was only administrator.
TC, Cambridge

&'149; Legal & General has checked your file again and says the pension was set up on a broker's instruction, so it had no knowledge of your background. But the Occupational Pensions Advisory Service (Opas) can look into this for you. Telephone the helpline on 020 7233 8080 and the adviser will tell you what information they need to investigate.

All-risks cover: Hollow ring


I reported the loss of a ring to Eagle Star, which had merged with my insurance company, Zurich. Eagle Star told me my policy did not include cover for jewellery. I sent them a copy of my policy, showing that jewellery was included with house contents, but Eagle Star phoned to say it was included only if stolen from the premises, a contradiction of their previous advice.
IT, Scarborough

• Zurich has checked and found that your old insurance policy included 'all-risks' cover, for which you paid extra. This is the section that means you can claim for something you lose when you are away from the house; without it, you can claim only if the ring had been lost or stolen from home.

When you renewed with Eagle Star, which is now the brand name for Zurich policies, you chose not to pay the extra for all-risks.

Pension units: No FT comment


I have contributed to a self-administered pension with Legal & General since 1992. I was informed at the time that I could monitor the value of these funds in the Financial Times and this was the case until the beginning of March, when L&G stopped publishing the price of units. I was given the name of someone to phone but all I got was a voicemail, which has not been replied to. Neither does the website give unit prices. Couldn't they at least publish the prices on the internet, which would cost them virtually nothing and could be updated daily?
RK, Shearsby

• Legal & General has several generations of pension units, aside from unit-trust units, but those still quoted in the Financial Times do not apply to your policy. L&G has to pay the Financial Times tens of thousands of pounds a year to publish its prices, so it decided to restrict the list.

There is no limit to the volume of information L&G can put on its own website and, following your enquiry, the pensions department is trying to discover why these prices are not included.

The person you phoned says he did reply but you were out and he chose not to leave a message on your answering machine. L&G has now given you the name of a call centre agent who will give you up-to-the minute prices and instructions for finding them on the MoneyExtra website (www.moneyextra.com)

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.