NatWest took credit where none was due

I pay my NatWest Visa credit card bill in full each month by direct debit. In the past, if my statement showed that I was near my credit limit and I needed to go on using the card, I topped up my account by paying in a cheque before the due date.

My statement last January showed a balance of £2,510 to be debited on 2 February. Because I was about to go on holiday, I sent a cheque to NatWest for £2,500. This was credited to my account on 20 January but it was not used to reduce the balance. The full amount was claimed by direct debit on 2 February, doing serious damage to my bank account.

I asked NatWest to pay back the £2,500 which I had in effect lent them against my will. They finally did so on 17 March, saying they had had to change their previous practice because it contravened the Bacs (banks automated clearing system) rule that advance notice of the amount to be deducted must be given.

The bank said it was under no obligation to advise customers of the change as 'we were previously contravening Bacs and this update has bought us into line'.
EH, London

We had no choice, says NatWest, we have to stick to the rules - but the bank agreed it should inform all customers. I checked that Barclaycard was also following Bacs' rules but Barclaycard has no problem allowing cardholders to pay in a lump sum to reduce the outstanding balance, provided the request arrived at least two days before the payment date.

Bacs confirmed that Barclaycard is right. There is the 'occasional payments rule' allowing customers to make one-off payments in advance as long as banks have enough time to take the correct amount under the direct debit. NatWest had to think again and conceded that Bacs does allow initial payments to be deducted from the debt; the bank will now allow this if a minimum of four working days' notice is given before the direct debit is due to go out. The bank says it will take four weeks to change the system back again.

Am I covered by cover notes?

Last September, I bought an insurance policy for my taxi and paid the broker, Arkol Insurance, £3,000. They gave me a 30-day cover note from Tradex and I was told to expect the insurance certificate shortly. This has still not arrived and Arkol has continued sending cover notes. But the cover notes say they are not valid without a policy number. After eight months, I wrote to Tradex, who said they had received no application but would sort it out. Six weeks later, I have still not received the policy.
BK, Manchester

Both sides reassure you that you have been insured since September but blame each other for this ridiculous delay. Arkol said the insurer might have mislaid the paperwork and had sent regular reminders. It also blamed the insurer for saying unnecessarily that cover notes were invalid without a policy number. Tradex says it heard nothing from Arkol until May and the paperwork might have got lost in the post. It says it still has not received any money for your policy but has now sent you the certificate.

Pensioner's ID stalemate

I am trying to help my parents, in their late eighties, streamline their finances. My father has a Barclays bank account which is solely in his name and I have asked Barclays to put my mother's name on the account so she can sign cheques. They will do this providing she produces documents such as a driving licence and passport (she has neither) and utility bills with her name on (all are addressed to my father). We have reached stalemate.
LG, Lowestoft

This must be a common problem for people of your parents' ages, so of course banks must have the flexibility to accept other types of identification. Barclays has now arranged for you and your parents to visit the branch to talk through what this might be - perhaps a joint savings account statement or pension book.

Tell me more about baby bond

I have a vague memory that, in his recent Budget, the Chancellor said there would be a lump sum offered to all new babies. How do I find out more?
JG, Northampton

This is the Child Trust Fund through which the Government will provide up to £500 for every child born from September 2002.

Every baby will get £250 from the Government. Children from low-income families will get an additional £250. Every year family and friends can add up to £1,000. Children cannot access the money until they are 18. The accounts will not be available until 2005. More information will be published later this summer on the Inland Revenue website.

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