Family Finance

Huddersfield Daily Examiner (Huddersfield, England), June 24, 2009

Byline: TONY HETHERINGTON

By TONY HETHERINGTON features@examiner.co.uk Family Finance Q:We have booked to stay in a privately owned apartment in Cornwall in August. We have paid a deposit of pounds 250, with a further pounds 650 due soon. We are worried about sending a cheque when we have no idea whether the apartment owner is still in business. Is there any way to protect ourselves if it turns out the owner is no longer in business? We thought of paying by credit card cheque, but this would cost an extra pounds 15. Would this protect us if the apartment owner became insolvent? Ms C S Credit cards offer protection on purchases over pounds 100 - but credit card cheques are quite different and offer no such protection. If the apartment owner trades as a limited company, you might get some clues by going to www.companieshouse.gov.uk.

For example, if a company has failed to file accounts, that is a bad sign! But if you are dealing with an individual, things are trickier. However, some online credit reference agencies offer reports on sole traders, including whether or not there are any court judgements against them.

Try www.checksure.biz/sole_trader_reports.htm You can also check with www.landregistry.gov.uk to make sure the person you are paying still owns the apartment. And you can ask for a reference from his bank.

The bottom line, though, is that if you are paying in advance for goods or services from an ordinary individual, there is no system that will compensate you if they go broke.

Q:If someone has three children, all adults, and dies without leaving a will, does the eldest child have any special rights? In particular, does that child inherit the family home? Ms P G The three children have equal shares. The eldest has no special rights. Normally, the family home would be sold and the proceeds divided, but there would be nothing to stop one of the children buying out the other two, if a price could be agreed.

Q:A relative was going through a hard time financially a couple of years ago, and persuaded me to sign a credit application to buy a motor bike he said he needed so he could look further afield for work. He did find a job, and later moved away, but now I am being rung up by debt collectors because it appears he stopped make the credit repayments. Am I liable? S T Sorry, but when you signed the application you made yourself liable.

The loan company judged your creditworthiness, and lent the money to you. On the brighter side, many debt collectors will settle for less than the full amount owed. Try an offer and let me know what happens.

Q:We told the travel agent we wanted to book a hotel suitable for my wife, who is disabled, but on arrival we found it was completely unsuitable. The tour operator said the agent had not even enquired, but the travel agent says he did and was misled.

PP The Association of British Travel Agents (30 Park Street, London SE1 9EQ) offers an arbitration scheme. It will establish what went wrong, and it has the power to award compensation..