P.I.P. and Motobility question

I was in the local Peugeot dealership this morning checking my car in for a service. Whilst there, there was a bit of discussion about Motobility and the issues the recent changes are making to users of the scheme. Indeed, one member of staff said that a lady had handed her car back because she would breach the 10K mileage allowance p.a. in less than six months. This lady went on to say the DWP was now making direct PIP payments to car finance companies so that people could continue to have a car. Can this be correct?