Really confusing situation: any maths brains out there?

Hi,

I've got another thread about this, but in the wrong place, so posting here in the hope someone can help me.

The facts are listed below, but I'm looking for a maths whizz who can work out a solution!

In April 2005 I took out a graduate loan @ 7.9% over X years

Unbeknown to me, Barclays added PPI to the loan upfront.

In January 2006, I discovered this, so visited the branch nearest my work to ask for this to be removed.

Barclays DID remove the PPI, but not until March 2006 (2 months later) - it took this long because their staff were used to dealing with commercial enquiries, and none of them had had to deal with a graduate loan before.

I complained that it took so long to remove, and got a refund of PPI for the 2 months (Jan - March 06).

Now, in order to remove the PPI, Barclays had to take out a new loan and use this to repay the old one.

Are you with me so far? All fine and dandy.

Earlier this year, I came across MSE and found out that I could reclaim my PPI as I believe it had been mis-sold to me (upfront policy, plus I was an unemployed student when it was added on - without my knowledge).

So, I wrote to Barclays asking them for a full refund of PPI. I also asked them to explain what had happened to my loan when I went into the branch to have the PPI removed, as something (gut instinct) didn't seem right.

Now here's the important bit:

It is my understanding - correct me if I'm wrong - that if you ask your bank to remove PPI, then it is under an obligation not to place you in a worse position after the PPI has been removed, than you were in before. So, for example, it can't alter the interest rate or terms to your disadvantage.

Having received a letter back from Barclays, I have discovered that when the new loan (without PPI) was taken out to replace the loan (with PPI) that the loan amount was identical - £10,000 - even though I had already made 7 payments of £242 per month towards the loan.

Or, in other words, I took out a loan for £10k. I was mis-sold PPI on top. I made 7 payments of £242 towards the loan, but when I went into the branch and asked for the PPI to be removed they did this, but the loan balance reverted back to £10k.

So, £1,694 worth of payments have disappeared into thin air.

I'm now pursuing this complaint via Barclays and - shortly - the FOS, as Barclays can't seem to understand my complaint and don't really get what the issue is.

What I'm wondering is if anyone here is mathematically savvy enough to help me work out what my loan balance SHOULD be - or, rather - how much this error by Barclays has cost me?

It is actually going to be more than £1,694, because I've paid additional interest on a phantom balance that shouldn't have existed - if that makes sense?

Could anyone please help?

April 2005: Loan taken out. Balance = £10k + £1,789 PPI added upfront

Payment holiday from April - September, when first payment of £242 comes out.

From then on, regular monthly payments of £242, until my new loan took effect in May 2006.

Up to this point I had made total payments of £1,694.

The new loan balance was for £10k.

From then, monthly repayments of £154.50 took effect (Barclays altered the length over which I'd be making repayments, too).

What should my loan balance be today if Barclays hadn't added PPI?