Insurers' haggling is just not cricket

Our private health insurance with Bupa ended on 1 July when we switched to Exeter Friendly Society, where we were insured from 27 June. On 25 June, my son was hit on the knee by a cricket ball but needed no treatment. On the night of 27 June, when out with friends, his knee became locked. He had a scan done privately and I sent a claim to Exeter Friendly. It refused to pay, saying this was the result of a previous condition that we had not disclosed. We couldn't have done this because we had sent in our application forms before the first accident. Bupa also refused to pay, even though both accidents happened while we were insured, because the policy had ended by the time we claimed.
TB, Bourne End

Assuming the serious second injury was triggered by the first, Exeter is right that it was not your insurer at the time, although it is a disingenuous excuse to blame you for not disclosing a 'pre-existing condition'.

Bupa clearly insured you at the time but told Cash it can pay only while your membership is live. If you had been claiming on a house policy for subsidence in these circumstances, insur ers agree how they will divide the costs. But you were insured by two companies, who both refused to take responsibility.

I pointed out to Bupa that the ombudsman would expect the full claim to be paid and would decide only how the costs should be split between insurers. Bupa thought again and has now agreed to pay the your costs so far, minus the excess. You will receive £710.

Can agency pocket my fee?


I moved from London to Brighton and found a studio flat to rent through Harringtons Letting Agency. I paid a £152.75 holding fee and was told I could move in on 4 August, the same day as I started my new job.

That morning I rang to confirm and was told the date had been changed to 18 August. Commuting from North London was impractical so I found another flat immediately. I asked Harringtons to return my fee but they said it was not possible because the money went on credit checks and they refunded only if landlords changed their minds - which they had. Can the agency do this?
IC, Brighton

It depends what was written in the contract you signed when you paid the fee. Yours says payment is not refundable if you withdraw, fail the credit search, do not return the application form within 48 hours or fail to take up the tenancy on the start date. You did none of these, so you should get some refund.

Bank checks cost around £30 and credit reference agency checks £10 to £20. You will know if the firm conducted a credit check because it has to obtain your permission first. After I contacted Harringtons, it had second thoughts and has agreed to refund the balance after deducting a cost for credit checks. You will get back £117.

Mixing your maxis and minis


Some years ago, I opened a maxi-Isa with Bradford & Bingley, comprising both a stocks and shares and a cash component. I want to transfer the cash component but B&B says I can transfer only from one mini-Isa to another mini-Isa. This means I am tied to B&B's lower interest rate.
CA, Glasgow

This is wrong, as Bradford & Bingley now accepts. You can move the cash component of a maxi-Isa to a mini cash Isa, just not in the same year as you opened the maxi-Isa, because you cannot open a maxi and mini Isa in one year.

Can I rely on this compensation?

In articles about the difficulties of insurance companies, I have seen no mention of the Financial Services Compensation Scheme. I am contemplating buying an annuity from a company that offers a pension £6,000 a year ahead of the next best but is reported to be in trouble. Is the compensation scheme a guarantee, or a flimsy promise that has yet to be tested?
GB, West Somerton

The Financial Services Compensation Scheme took over various other financial compensation schemes nearly two years ago and is guaranteed. If the insurer went bust, you are guaranteed to get the first £2,000 of whatever the annuity has guaranteed to pay you, plus 90 per cent of the remainder. You would get more if the company could afford it. Only you can decide if the risk is worth taking.

The Pension Compensation Scheme applies only to occupational pension schemes where the employer goes bust and the pension scheme can meet no more than 90 per cent of its liabilities through fraud or theft.

· Email Margaret Dibben at money.writes@observer.co.uk or 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.