Insurance mis-selling whistleblower Monty Burn has written to ABI director general Mary Francis, warning her of another potential selling scandal.
Burn, a former compliance officer for the Mortgage Code Registration of Intermediaries Council, is calling on Francis to close what he claims is a loophole in the ABI code of practice covering the sale of negative equity protection for homebuyers.
He wants the code re-drafted so that sellers of equity protection are obliged to notify consumers of policies with lower commission.
Burn claims he has been told unofficially by a number of mortgage lenders that they will not offer EP as it only pays them 20% commission, compared with 65% on single premium accident, sickness and unemployment insurance.
Burn, who left his job after publishing details of alleged insurance-selling sharp practice, said the difference in commission on both products is around £850.
He has also addressed his concerns to the Treasury and the MCRIC, now known as the Mortgage Code Compliance Board.
