Questions of Cash: My hire van had a scratch when I returned it. Then the damage escalated and so did the bill

Q. I hired a van from Europcar last August. There was some scratch damage to one side of the vehicle while parked. I was unaware of this until I returned the van, but accepted responsibility.

As I had not taken out any excess protection, Europcar retained the excess of £1,000. I had expected that the repair would cost less than this but a damage report estimated the bill at £1,540.70. This included 4.3 hours of repair work, plus 10.2 hours of work unrelated to the scratch.

I challenged this and Europcar sent me photos of "other damage". This was nothing to do with me. Late in November, Europcar accepted that I was only responsible for the original scratch. But when the invoice arrived, it showed an estimate that included 7.9 hours of labour at an hourly rate of £45, plus VAT. I have complained to the company about the rise in hours, but it says it is not willing to change its decision. MW, Perth

A. Europcar now accepts that you are correct. Its spokeswoman said: "The company is sorry that [the reader] was overcharged and can advise that this was due to an error on the invoice regarding the number of labour hours calculated to repair the scratch. Europcar extends its apologies to [the reader] for the error and... has refunded him for the incorrect charge."

Chased for a debt – but I'd stopped my cover

Q. I received a letter from a debt collection agency, CARS, seeking payment of £22.17 for a household insurance policy with Bradford & Bingley. But I phoned the B&B call centre last November to say I was not renewing my cover, which expired that month. It told me my records had been amended to show I had opted out of auto renewal, and I could ignore the renewal letter when it came. Since then, I have received two automated voicemails saying I needed to call B&B urgently on a number provided. When I did so, I was put on hold for 10 minutes and no one answered. HP, Sussex

A. Bradford & Bingley was rescued by the Government in 2008 during the financial crash. Under arrangements agreed in relation to European state-aid rules, B&B was closed to new business. It sold its insurance operations to Budget Insurance Services Limited (BISL), which continues to provide insurance products under the Bradford & Bingley name. The Government's ownership of B&B was handled by UK Asset Resolution. It passed on your complaint to BISL, which now accepts there is no debt to be collected.

BISL wrote to you directly to explain that the supposed debt related to a small charge of £2.17 due at the end of your policy, which should have been cancelled as a result of your conversation with the call centre. This sum was then shown as a debt, with a non-payment charge added to it.

BISL apologises for seeking to recover this and has sent you compensation of £100. CARS confirms there is no adverse entry on your credit record.

Shares are too risky. what are my options?

Q. I have taken a £60,000 lump sum out of my pension, while continuing to work. I have used £20,000, which leaves me £40,000 to save or invest. Given the turmoil on the stock market, and the risk of share values falling further this year, I do not want to put money into shares. What are my best options? I am 66 but not intending to retire in the immediate future. AN, London

A. Danny Cox, of the adviser Hargreaves Lansdown, says: "Beyond the stock markets, there are few options that provide reasonable returns with capital security. The interest on cash Isas is at a five-year low, with little prospect of improvement for perhaps the remainder of 2016 and beyond.

"However, the interest on a cash Isa is tax free, which is more valuable the higher the rate of tax you pay. The Isa allowance is £15,240 this tax year and next.

"Premium bonds are a tax-free alternative with 100 per cent safety but no guarantee of a prize, which is where the returns lie. Peer-to-per [P2P] products are another option Lenders are matched with borrowers to provide the potential for much better returns. It is a relatively small but growing market.

"However, there is a risk of loss of interest or capital if a borrower defaults and, unlike with Isas, P2P isn't covered by the Financial Services Compensation Scheme [FSCS]. That said, default rates have been very low so far.

"It is understandable that you are concerned about the stock market given the current volatility. However, the entry point – the price you will be paying for shares now – is significantly cheaper than it was, say, in April last year.

"If you can afford to take a longer-term view, of at least five years, then a proportion of your capital invested in diverse UK equity income funds should prove more profitable than cash deposits.

"If you opt for a cash Isa, the best interest rates offered, according to the data provider Moneyfacts, are from State Bank of India, which is offering 2.60 per cent on a five-year bond, 2.30 per cent on a three-year bond and 2.00 per cent on a two- year bond. These rates are only available if you deposit £15,000. State Bank of India is regulated by the Financial Conduct Authority and subject to FSCS protection."

Questions of Cash cannot give individual advice. But we’ll do our best to help if you have a financial dilemma. Email us at: questionsofcash@independent.co.uk