DEAR MARGARET: Has my bill gone to pot?

By MARGARET STONE FOR MAILONLINE
Updated:

I have a small retail business. Last November, British Gas (BG) said my electricity bill was £3,400 in arrears. BG blamed it on price increases and said I could repay in six monthly instalments.

Then, in May, the premises behind mine were raided by the drugs squad and a huge cannabis factory was discovered. It seems they had tapped into my electricity supply.

BG agreed to send someone down, but no one came. Despite having paid more than £5,000, I don't appear to have caught up with the bill, and I have received threatening letters.

T.A.N., Southport, Lancs.

cartoon

Caught out: The shop was charged for the electricity for a cannabis factory that had tapped into its energy supply

What a bizarre sequence of events. I don't know if you will be reassured by this news or not, but I can confirm that the drug factory had not tapped into your electricity supply.

There was an inspection of the premises, not by BG but by a revenue protection officer from Scottish Power, which supplied the power to the premises where the drugs were being grown.

Scottish Power confirmed to BG that your supply had not been affected. Weekly usage readings you have since sent to BG confirm this.

Your large bill was the result of under- estimation of previous bills coinciding with last year's price hike.

And far from not having caught up with the overhanging bill, BG confirms that by June you had actually cleared the debt - and were in credit! Somewhere along the line there has been a huge failure in communication.

But BG at my behest has now written with an apology, an up-to-date statement of account, notification that your consumption hasn't changed, and confirmation that your payment plan repaid the last year's large bill.

In February this year, I had fraud on my Lloyds TSB Mastercard. More than £2,000 was taken over 16 separate occasions at Lloyds cashpoints. Two months later, Lloyds sent a letter saying that I would not be liable. It was only then that it refunded me.

However, because this is a credit card I incurred interest, charged until the money was refunded. Lloyds refuses to pay back this interest. I even enlisted the help of my MP, but I've got nowhere. 

B.L., Southampton, Hants.

The rules of the Consumer Credit Act, which applies to credit cards, are quite clear that customers are entitled to the money they have lost from transactions that are unauthorised.

Lloyds has come to the conclusion that you are not to blame, so it should refund you for the loss. It is staggering that you have made so much effort to get this done, but it has ignored you.

It did not take long for Lloyds to put right their error once I was in touch. It has apologised, refunded the outstanding interest of £32.62 and given you £30 as a gesture of goodwill.

We are pensioners and had to buy a new gas cooker as our old one broke. Can we pay 5 per cent VAT on buying and fitting it, as it improves our well-being?

P.R., Grimsby.

No. You may be referring to the reduced 5 per cent rate on home improvements for over-60s who have chronic health problems. Domestic fuel or power is also charged at a reduced rate of 5 per cent. You'll have to pay the 15 per cent rate for the cooker and installing it.

The phone number on the back of my Alliance & Leicester bank card is wrong. I'm worried that if my card gets stolen I won't be able to report it. What number should I call? M.P. by email.

The right number is 0844 800 9000. This line is open 24-hours-a-day for you to be able to report lost or stolen cards.

Can you receive tax relief on more than one private pension if you are still paying into both? L.P. Manchester.

You can save as much as you like into any number and type of registered pension schemes and get tax relief on contributions of up to 100 per cent of your earnings each year, provided you paid the contribution before age 75. But the amount you save each year toward a pension is subject to an 'annual allowance'.

For the tax year 2009-10 the annual allowance is £245,000. You pay tax at 40 per cent on contributions above this.

I have some old insurance policies with the Refuge Assurance Company but can't track down the company. Can you help? J.F., Croft, Cheshire.

Refuge Assurance is now part of Royal London. Call them on 08450 502020. To trace an old insurance company, phone the Association of British Insurers helpline on 020 7216 7455.

Several companies including Bio Tonics and Star Shopping keep sending letters addressed to my dead wife saying she has won a money prize. I'm finding this very upsetting. How do I make them stop? R.C., Lincs.

Sign up to the Mailing Preference Service - a free service which allows you to block unwanted post - on 0845 703 4599 or at www.mpsonline.org.uk.

I am looking to invest a sum with a building society and I came across Principality BS from Wales. However, I am unable to find out anything about them. Can you advise me? G.M., by email.

The society's website, www. principality.co.uk shows all their financial reports.

In its most recent half-year figures to June 30, 2009, it made a pre-tax profit of £5.8 million.


Most watched Money videos