PCP COMPENSATION NEWS
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The Financial Conduct Authority (FCA) announced on 9th September 2025 that it has reduced the number of promotions by claims management companies that exaggerated the compensation available to drivers following the rulings on motor finance fees.
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Nikhil Rathi, the FCA's Chief Executive informed the House of Commons Treasury Committee that since year, 400 promotions have been removed or modified due to unfair or inaccurate claims. Approximately 170 of these actions occurred after the Supreme Court's ruling on motor finance in August, indicating that the judgment has not deterred CMCs from soliciting clients.
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Rathi emphasized the FCA will take a strong stance against any regulated entity that provides misleading information to consumers regarding potential compensation. He reaffirmed the FCA's estimate that compensation payments are expected to average hundreds of pounds, not thousands.
They noted that law firms and CMCs continue to run high-pressure advertisements promising consumers around £4500 in compensation for unfair treatment when financing car purchases between 2007 and 2020.
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Rathi advised consumers to contact their lenders directly rather than engage with claims firms, which may take up to 30% of any compensation owed. FCA chair Ashley Alder stated that the goal is to design a scheme that offers consumers a fair outcome and a preferable alternative to court proceedings.
The FCA plans to release its consultation in the coming weeks and anticipates a significant number of compensation claims will be processed by 2026.
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ANALYSIS OF ELECTRIC VEHICLE (EV) ACCIDENTS
Using extensive data, we have assessed the frequency and severity of electric vehicle (EV accidents compared to internal combustion engine vehicles (ICEVs). Our analysis, which includes data from the Norwegian Public Roads Administration (NRPA) from 2020 to 2023—a period of significant EV adoption, with EVs and hybrids making up 42 of road traffic in 2023—examined over 2 million registered EVs that traveled a combined total of 28 billion kilometers and were involved in than 2,300. Norway aims to be the nation to prohibit the sale of new fossil-fuel-powered cars by the end 2025, as noted in the IEA policy review.
We have further enriched our data with severity metrics from the HLDI institute in the US and ABI statistics in the UK, and the proprietary Guy Carpenter motor claims database. The risk profile contrasts with that of ICEVs in several significant ways. Research indicates that EV drivers generally come from higher-income households, are older, and predominantly live in urban areas, according to a Gallup Poll (4) and the Department for Transport's car ownership review (2023). The newer technology in EVs, which often features advanced driver-assistance systems (ADAS), a simpler drivetrain, a lower center of gravity due to heavier batteries, complicates the task of isolating their effects on accident.
However, we have adjusted the data for. In terms of frequency, our findings reveal a steady decline in accident rates across all fuel types over time, attributed to enhancements in vehicle safety, better road infrastructure, and changing driving behaviors in the post-COVID era. The frequency of accidents involving EVs is consistently lower than that of ICEVs, showing an overall reduction of 17% across all years analyzed. Regarding severity, the average number of vehicles involved in accidents serves as a proxy, revealing that this figure is approximately 8% higher for EVs than for ICEVs.
HGV EV'S?
A recent report reveals that to support all heavy goods vehicles (HGVs) in Scotland, a minimum of 63 en-route chargers must be installed. The Centre for Sustainable Road Freight (CSRF) reports that while 23 chargers are either completed or in development, an additional 40 are necessary to power battery electric lorries.
They are calling on HGV operators to contribute data to assist researchers in their upcoming report.The study indicates that Scotland has approximately 30,000 registered HGVs, with the telematics data representing around 2% of this total, or 600 vehicles.
The highest usage of battery electric HGVs is found along the M74/A9 corridors, with the busiest charging sites needed within 5km of Annandale Water and Dalwhinnie.
To facilitate this, the network will require at least 1.3TWh of electrical power, enabling around 70% of haulage routes to be completed without extra charging stops. The CSRF noted that even with just 2% of HGVs transitioning to battery electric vehicles (BEVs), 11 substations lack necessary capacity for the core charging network, highlighting the need for significant investment in the energy system.
Scotland’s cabinet secretary for transport, Fiona Hyslop, emphasized the importance of this report in understanding the steps needed for battery electric truck adoption, stating that robust journey data from HGV fleet operators is crucial for informed investment decisions and effective mapping of new charging sites.
PCP CLAIMS UPDATE
In a significant ruling that overturns key findings from the Court of Appeal, the Supreme Court determined that:
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The dealers did not have fiduciary duties to their customers
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The lenders could not be held liable accessories for breaching any fiduciary duty, as such a duty did not exist.
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Additionally, a bribery claim hinges on the recipient of the bribe having a fiduciary duty, which lenders lacked, thus they could not be liable for bribery.
However, in the case of Johnson, the claimant won their case under section 140A of the Consumer Act 1974 (the "CCA"), with the Court finding the lender-consumer relationship to be “unfair” due to the large commission size, lack of disclosure about it, and the hidden commercial connection between the lender and dealer.
The Court also addressed complex legal points, noting that the tort of bribery should not be abolished and maintaining that remedies for bribery include a presumption that the bribe inflated the product price.
The Judgment is expected to offer clarity for finance claims, as the Supreme Court's ruling that car dealers are not fiduciaries restores some common sense to the issue. Legislative intervention appears unnecessary, but Mr. Johnson's successful claim raises the possibility of similar cases regarding arrangements that weren't DCAs.
The unique facts in Johnson, especially the 55% commission, indicate a potential imbalance, leading to questions about where to draw the line in such cases. Lenders and customers will need to evaluate if their are comparable to Johnson's to determine if they can file a claim, a process that may not be straightforward.
This marks just the beginning of developments in motor finance claims, with two upcoming cases in the Court of Appeal poised to provide further on DCAs:
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The appeal in Clydesdale v FOS is set for September 2025, focusing on a judicial review of the Financial Ombudsman Service's decision regarding inadequate DCA disclosure.
The appeal in Angel v Black Horse is scheduled for April 2026 and involves about 800 claimants against related to DCAs under the Consumer Credit Act with the High Court allowing these claims to proceed under omnibus claim forms.
The FCA is expected to announce whether they will propose a redress, which will introduce new for both the FCA and market participants. They have offered guidance on various aspects of the scheme, including whether it will opt-in or opt-out and how redress will be calculated. If the FCA moves forward with the scheme a shorter-than-usual consultation may follow. We will continue to analyze the judgment and its potential.
The primary challenge to fleet electrification is the inadequate charging infrastructure, with 41% of operators citing a shortage of public charging points. The research further indicates that 39% of companies do not offer charging options at employees' homes, while 25% lack chargers at their offices. John Peters, head of Arval Mobility Observatory in the UK, remarked, “Our findings reveal that 70% of companies encounter at least one challenge related to charging points, highlighting a pervasive issue.
While employers can address the lack of charging at offices or at the homes of employees off-road parking, numerous factors remain beyond there. Although public charging infrastructure is expanding, it remains inconsistent, and options for street charging in terraced housing or apartments are currently limited, though improvements are being made.
Recently, the Department for Transport (DfT) discontinued the £950 million Rapid Charging Fund (RCF), which aimed to install over 6,000 rapid and ultra-rapid charging points on England’s motorways by 2035. Current data from Zapmap indicates the presence 82,369 EV charging devices across 40,479 locations. Additional challenges identified include the higher acquisition cost of electric vehicles to internal combustion engine models (30%), limited model availability (23%), restricted driving range (18%), and employee reluctance towards electric vehicles (16%). These barriers are diminishing rapidly. The cost of electric vehicles is approaching that of ICE models, particularly for options. While certain gaps in model availability remain, especially for 4x4s and pick-ups, new models emerging to address these concerns. Notably, fewer than one in five fleets consider range to be a significant issue.
Just a few years ago, this would have been a major concern, but the typical range of 250–350 miles for fleet electric vehicles now meets the majority of operational needs.
When comparing the UK findings with those from other countries, the challenges identified here are largely similar to those faced by fleets globally, indicating shared experience in the electrification process.
