Full check on empty house fraud

I have been receiving letters addressed to a Francis L. Wilson. I eventually opened one, which was from a solicitor saying Mr Wilson was being taken to court for a £770 debt with the Woolwich. This debt collector wants evidence that I own this house and confirmation that I do not know Mr Wilson's whereabouts.

If Mr Wilson has an account with the Woolwich, how come I have not had any ordinary letters from them?
LC, London

You are suffering from 'empty house fraud'. When the previous occupier died nearly four years ago, the fictitious Mr Wilson used the address to obtain a Woolwich loan, which was obviously never repaid. The Woolwich last wrote in 1999, after you had moved in. When the letter returned, Woolwich realised the problem so did not write again. It has written off the debt, sent the file to the long-term debt list and instructed the solicitor to recover the money.

The solicitor appears to be doing no more than write to an address the Woolwich knew was wrong. Woolwich urges you to check your credit reference files. Phone Experian on 0115 934 4050, Equifax on 0141 951 1100. This costs £2.

Teach me about retirement extras

I have been paying into the Teachers' Pension
Scheme since 1972, and will retire in 2004 at age
60. Since 1992 I have been contributing the
maximum to the Prudential AVC scheme. Should
I continue with this, or would I do better to buy
back past added years until I retire?
CT, Leighton Buzzard

Your AVC pension depends on investment
performance over the next two years. Added years are
safer as the pension reflects your final salary and has
some inflation- proofing. But added years cost more
when you are older.

Whichever route you choose, make sure you are not
over-paying. Another reader, PP of Brighton, recently
retired with Prudential AVCs from 1989, to discover his
pension was over-funded. The maximum you can retire
on is two-thirds of your final salary, or less if you take
the lump sum. Any surplus is taxed at 32 per cent (48
per cent for higher-rate taxpayers) because the illegal
excess was tax free. The Pru may be responsible for
the mistake if PP took advice before deciding on
AVCs.

Ask the Pru for a 'headroom check' to make sure your
additional pension contributions do not put you in the
same position. Try the ready reckoner for AVCs on www.pru-teachers.co.uk, and for added years on
www.teacherspensions.co.uk, under 'leaflets'.

Penalised for being organised

I paid my bills, dating the cheques 12 April, when I get paid. One was to Royal Bank of Scotland for my credit card, but RBS cashed the cheque four days early. It bounced and cost me £25. RBS says it does not accept post-dated cheques yet, contradicting itself, cashes them as they arrive. I'm being penalised for being organised.
MH, Hove

RBS's official policy is that it does not accept post-dated cheques but tries to be helpful if someone notices the date. The bank admits there is no mention of this in the literature. Nor does the Banking Code address the issue. RBS is adding a clause to the payment instructions to make its position clear and sending you £25.

When you write a post-dated cheque, stick on a coloured note to make sure your instructions are noticed.

Will lenders have me as borrower?

I am single, in my early forties, and want to buy a home. Four years ago I was diagnosed with cancer. It went into remission and I started saving. My cancer recurred six months ago but is under control, and I work full time from home. Can I get a mortgage?
JT, Harrogate

Lenders are concerned only about your ability to afford the mortgage. They will not ask health questions but will want to see your last three years' accounts, and may decide your income is unreliable. With a pre-existing condition, you will have difficulty getting payment protection insurance.

As you are self-employed, unemployment insurance is worthless. You have no savings, so think carefully before taking on a mortgage. If you go ahead, you will be better with a fixed-rate loan.

· Email Margaret Dibben at money.writes@observer.co.uk or write to Money Writes, 119 Farringdon Road, London EC1R 3ER and include a phone 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.