Problem solved! says the bank - but don't ask us how

The original bill was for overdraft charges you incurred in April, but the money was not taken until May. Banks warn about fees in one month, but don't deduct them until the next. That is good because it gives you time to put money into your account to pay the fees. But returning your account to zero in the current month will not stop the charges. So, when these appear, they send you overdrawn again because there is no money to pay them and you incur more charges for the following month.

Lloyds TSB had in fact given you a temporary overdraft to cover the pre-notified charges that were about to hit your account, but you spent this money before the fees went through, so you went overdrawn again and more charges kicked in.

The bank has agreed to cancel this £165 bill. It has also, with your agreement, switched you from an account where you paid a monthly £7.95 fee to one without fees, which makes more sense. You are now just repaying overdraft charges and no extra fees.

Royal rides to belated rescue in neighbour row

I have a long-standing problem of harassment from my neighbour. Despite formal warnings from the police, she has kept on the right side of the law by regularly changing her behaviour. The situation is now so bad that I feel I have to apply for an injunction to prevent further problems. My household insurance with Royal & Sun Alliance includes legal expenses cover and I have asked them to clarify whether it covers this eventuality but, despite numerous phone calls, I have got nowhere. BS, Matlock

Royal admits that it has let you down. It now confirms that its legal expenses section covers £50,000 of the cost of taking your neighbour to court, but only for events that took place while you held the policy. Royal acknowledges that your dispute has continued for years and reached this crisis during the timescale of the policy. It has put First Assist, its legal services provider, in touch with you.

· Email Margaret Dibben at money.writes@observer.co.uk or write to Margaret Dibben, Money Writes, The Observer, 3-7 Herbal Hill, London EC1R 5EJ, and include a telephone number. Do not enclose SAEs or original documents. Letters are selected for publication and we cannot give personal replies. The newspaper accepts no legal responsibility for advice.