Still paying out for bust Independent

I have a home insurance policy with Independent Insurance arranged through a broker and paid by monthly direct debit on credit. My broker says that, as Independent Insurance is in liquidation, my policy has been transferred to another insurer. But the credit company, Premium Credit, says it has the right to continue collecting payments. Is it correct?
JP, Bristol

Premium Credit is confident it can tell individual customers by this weekend that they can stop making payments and it will not enforce payment from individual customers who cancel their direct debits. Another credit company, Prompt, says it is binding Independent's customers to their credit agreements, which are directly with them, unlike other lenders who have contacts with Independent.

Stephen Alexander, of solicitor Class Law which represents Creditors of Independent Insurance Group (CIIG), says Independent's policyholders should not be bullied by finance companies. He is keen to hear from other readers affected by Independent's collapse, preferably by email on mail@classlaw.co.uk, or 0207 724 2526.

Isas: Maxi mistake

Natwest Private Banking manages my portfolio of investments. In June 1999, they suggested I sell some Wolseley shares and invest the proceeds in a maxi Isa. I replied that I could not as I already had a cash mini Isa. In July 1999, they wrote recommending the same action and I applied for a shares mini Isa. Four months later they again sent an application form filled out for a maxi Isa. I discovered from my portfolio statement that NatWest did open a maxi Isa, although I had told them three times that I could not. I repeated this last September and the relationship manager said he would investigate. I have not yet had a reply, although in November he wrote chasing payment of the annual management fee. On top of this fee, they want to charge me £100 for an error they made against my repeated instructions without my signed authority. Meanwhile the Revenue has queried my Isa holdings.
KJ, Southampton

Where did NatWest Private Banking leave its brain? Your letters spelled out time and again that you were not eligible for a maxi Isa yet still the bank bought one in your name. It suggests a turnover in staff at that time meant nobody read the previous correspondence on file. Now it is refunding the fees - £100 for closing the Isa plus £21.52 Isa management fee - and is paying you the same again in compensation. The bank is writing to the Inland Revenue to accept blame.

Pension options: Teacher can't add

I decided to pay into a free-standing AVC rather than buy added years in the Teachers Pension Scheme as it seemed so costly. However, as I have stayed in teaching longer than I had planned, I thought I might be able to use the transfer value of my FSAVC fund to buy past added years. Standard Life will do this but the Teachers' Pension Fund said it was against the rules. Who's right?
BP, Woodbridge

They both are. Standard Life will forward your money to another scheme but only if the scheme agrees to accept it. Teachers' Pension Scheme will not, because there is a significant difference in the type of benefit from the two pensions. With AVCs you buy an annuity, whereas past added years provide additional pension of 1/80th of final salary and a tax-free lump sum. You get tax relief on your AVCs then pay tax on the annuity but with added years not all the benefit is taxable.

Accumulation: Where's the pep?

In 1999, my wife invested £3,000 in the Invesco European Growth Fund Accumulated Pep. This gave her 590.203 units. The valuation increased from £3,000 to £4,600 and is now back to £3,000. She still has only 590.203 units. Where is the accumulation?
JA, Coatbridge

Accumulation funds work differently from those that re-invest dividends. With re-invested dividends, the payout is used to buy extra units. With accumulation funds, you keep the same number of units and the value of the dividend is added to the unit price. So, although your wife's units are worth the same as when she bought them, she is worse off because this figure includes the accumulated dividends. This fund suffered badly when it had a large investment in the new technology sectors.

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