PPI cancellation - does this mean a brand new loan agreement?

pepperpot22_2

Hi folks
I've copied below a letter I'm sending to NRAM afterI called them about cancelling PPI. If anyone here is able to tell me I worrying about nothing, that would be fantastic!! I took this loan out in 2007 and will be half way through the 10 year agreement in March 2012. (BTW I've made enquiries about PPI mis-selling to NRAM but don't think there's any benefit in me continuing to pay PPI in the few months before I pay the loan off.)

Dear Sir/Madam

Re: Account No: XXXXXX

On XXXX I called NRAM to make enquiries about cancelling PPI on the above agreement. I explained to the advisor (XXXX) that I would be paying the remainder of the above loan around March/April 2012.

I told XXXX that on the original loan agreement dated XXXXXXX, the settlement amount to pay after 60 months was £5,500. I asked XXXX to confirm that removing the PPI from my agreement would not INCREASE this settlement figure. He told me that the settlement figure would be less that £XXXX with the removal of the PPI.

I therefore proceeded with the cancellation of the PPI and XXXX went through the process of changing the agreement. The agreement reference he gave me is: XXXXXXXXX

I am now concerned that I have opened a brand new loan agreement and the early settlement figure will no longer apply. Please can you confirm that if I request early settlement of this loan in March 2012, the settlement figure will not exceed £5,500?

Please could you also confirm that the cancellation of the PPI is not binding until I have signed a new agreement?

jonesMUFCforever

IMO the taking away of the PPI does not constitute a new loan agreement.