A pivotal ruling is expected this summer in the case of Johnson v FirstRand Bank Ltd, and it could significantly widen the scope for consumers to pursue claims over undisclosed commissions in car finance deals – especially Personal Contract Purchase (PCP) agreements.
At the heart of the case is the question of whether consumers can bring successful claims without having to prove dishonesty on the part of the lender. If the Supreme Court rules that mere lack of informed consent is sufficient, this could dramatically increase the volume and viability of PCP claims across the UK.
The Opportunity for Claims Firms and Panel Solicitors
A favourable decision in FirstRand would provide strong legal grounds to proceed with PCP commission claims where:
- The finance provider paid commission to the dealer or broker,
- The customer was not properly informed of that commission or its structure,
- And the commission created a conflict of interest.
This could unlock significant claim volumes but, it could also create significant financial risk for firms funding litigation at scale.
How amberis Can Help
At amberis, we provide specialist ATE (After the Event) insurance to law firms and claims businesses running PCP commission cases.
Our policies are designed to give you and your clients confidence to pursue valid claims without fear of adverse costs.
Our ATE insurance offers:
- Cover against defendant legal costs if the claim is unsuccessful,
- Flexible premium structures (deferred and contingent),
- Underwriting tailored to the legal and commercial realities of PCP litigation,
- Support in building scalable, risk-managed books of business.
Whether you’re gearing up for a high-volume book build or carefully selecting a smaller caseload, our team understands the legal and strategic landscape of commission-based claims, and how to structure cover that aligns with your commercial goals.
Let’s Talk
If your firm is preparing for an influx of PCP claims – or is already active in the space – now is the time to ensure your risk management strategy is robust and responsive to what could be the most significant consumer finance ruling in years.
Get in touch with the amberis team to discuss ATE cover options for PCP litigation and how we can support your claims pipeline.