ASK TONY: KLM lost my son's luggage on a trip to Germany - but it won't pay for the new ski clothing that he had to buy

Published: 18:05 EST, 22 September 2015 | Updated: 03:19 EST, 23 September 2015

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My 17-year-old son went on a skiing trip to Germany in February with the squadron of air cadets he belongs to in Aberdeen. He flew to Stuttgart with KLM but his luggage never arrived.

He was left with only the clothes he was wearing and 24 hours later there was still no sign of his luggage.

The officer in charge of the group was then authorised by KLM to spend £400 on replacement clothes, including thermals etc so my son could ski. On his return I contacted KLM about a refund but, after months of emailing, it has refused to pay.

The suitcase was returned a month after my son got back, so the issue is not compensation, just the fact that KLM did not refund the money it authorised to spend so my son could buy clothes and toiletries.

The suitcase was returned a month after my son got back from his trip, says our reader

S. L., Aberdeen.

it is amazing how easy it is for a company to turn good service into bad.

KLM sensibly gave permission for your son to spend £400 on replacement clothes so he could enjoy his holiday but then turned down your legitimate claim, despite your months of chasing.

The fact it took the airline a month to return the luggage meant it was officially classed as lost, even though it did turn up. Lost airline baggage is covered by the Montreal Convention of 1999. The airline is responsible for loss or damage up to around £1,000, though this varies according to the exchange rate.

In the case of checked-in baggage, it is liable even if not at fault, unless the baggage was defective. If your baggage does not arrive, complete a Property Irregularity Report at the luggage-handling counter before leaving the airport. Make sure you get a copy of it.

You can spend money on essentials for which the airline must reimburse you. Ensure you keep receipts. If a member of the airline staff gives permission to spend a certain amount, then get that in writing and ask them to sign and date it.

The airline should deliver your baggage when found but if it makes you collect it you can claim travel expenses. After 21 days, baggage is officially considered lost. You must then claim within seven days of it being declared lost. You should in any case register your claim for any other expenses immediately after returning.

Once I contacted KLM, it called you the following day to apologise and promise to pay your claim.

In 2001, my husband and I took out a lifetime mortgage with Norwich Union for £27,000 at 8.25 pc.

My husband has now died and I am in my 80s. Each year when the statement arrives I experience a sort of fear that I should be dealing with this but what can I do?

I live on my pension quite comfortably, the property is worth about £300,000 and would be easy to sell but I do not want to move as it is adapted to my disabilities and if I sold and repaid the debt that would not be enough to buy again in this area.

I owe about £83,000 and at this rate of interest it will grow quickly. The solution is for me to die soon but I am unable to negotiate with the good Lord!

J. S., Worthing

Don’t worry. Your mortgage has a guarantee that what you owe can never be more than your property’s value. You can stay there as long as you wish.

Taking this mortgage arose from tragedy; you and your husband wanted to ensure your grandchildren and your son’s widow would be secure after his death.

Someone from Aviva (the new name for Norwich Union) has contacted you to allay your concerns about negative equity and debts.

As a general point on debt, everyone should understand that debts will only ever be paid out of the estate of someone who has died; other family members can’t be held responsible for a personal debt.

You say you are living comfortably on your pension so I suspect this won’t be an issue. Interest rates on these sort of loans are now lower but the penalties for cashing in your current loan are so large that you would have to live a long time to be better off.

My wife and I joined Utility Warehouse in May. The move was successful except for problems with EE (formerly Orange). Our bank called to say that £258.17 had been taken on direct debit by EE and asked if this was correct.

My wife’s new mobile phone contract had been cancelled prematurely. Utility Warehouse reimbursed £200 towards the charges.

In July, I received a letter from debt collectors demanding £120.95 on behalf of Orange. Our final paper bill from EE showed a zero balance so we thought we owed nothing.

We had assumed that when Orange became EE, they were one and the same thing.

Orange said this was a broadband cancellation charge. As we worry about our credit rating, we sent £120.95 to the debt collection agency.

W. W., Mansfield

You were on a 30-day rolling contract with Orange for phone and broadband. As you surmised, EE took this over.

In March, you upgraded to EE TV on a 12-month contract but changed your minds in May. EE allowed this as a goodwill gesture and put you back on the 30-day contract.

When you switched to Utility Warehouse, the final bill included early disconnection fees related to the 12-month contract which EE admits was an error.

It has apologised, refunded the charges and ensured the late payment is removed from your credit file.

EE says anyone appointing a company to cancel accounts is eligible to pay money owed after the 30 days’ notice.

If you use a third-party firm, make sure you give it full details and that it organises your cancellations properly.

STRAIGHT TO THE POINT

I’ve deferred taking my state pension. Will it still go up every year in line with the cost of living?

P. U., Fareham, Hants.

Yes. Basic state pension should rise each year in line with the highest of prices and earnings growth of 2.5 per cent every year — the so-called triple-lock promise. However, the part of your pension built up by deferring will go up only in line with inflation as measured by CPI.

My car insurer sent me a quote for £1,076 before my renewal period. I went online and found another firm would cover me for £178. I can’t help be angry at my old insurer. Is this normal practice?

M. I., Kendal, Cumbria.

Unfortunately, yes. Insurers routinely put up the cost of cover each year and hope you do nothing. A fifth of motorists fall for this trick. The moral of the tale is: always shop around.

I’ve been made redundant and told I’ll get pay in lieu of notice. Is this tax-free?

C. S., by email

No. Many people have heard their redundancy pay is tax-free and you can receive up to £30,000 in a specific redundancy lump sum free of income tax. However, if your contract says you will get pay in lieu of notice, then this doesn’t count as redundancy pay. It is essentially just earnings, so tax and National Insurance will be deducted as usual.

I received a small work bonus and decided to use some of it to pay off a chunk of our £47,000 mortgage. However, my lender RBS said there would be a penalty of nearly £1,000. This does not seem fair, as I am reducing what I owe.

F. H., High Wycombe, Bucks.

Most lenders will let you overpay by up to 10 per cent a year without charge (for you, this would be £4,700 this year). However, anything above this tends to incur a penalty, usually between 2 per cent and 3 per cent of your mortgage balance. The type of deal you have and how long you have had it can affect how much you have to pay.