Updated: 20 October 2025

Originally Published: 17 March 2025

Drivers with a car finance agreement from the last 17 years could be owed money. The Financial Conduct Authority (FCA) is working on one of the UK’s largest ever consumer refunds. Millions of drivers could be refunded for hidden commission agreements. If you have a MotoNovo car finance claim you could be owed hundreds, if not thousands of pounds. The agreement would need to have included hidden or unfair commission charges.

This updated guide explains how to claim against MotoNovo, the key signs of mis-selling, and what the latest FCA compensation proposal means for UK motorists.

Why MotoNovo Finance Claims Are in the Spotlight

A recent investigation found that a number of lenders and brokers used discretionary commission schemes that allowed dealers to increase interest rates to collect higher commissions. Many customers were unaware of these payments, so two drivers could purchase similar cars and one could be charged vastly more. The lenders found to be using these schemes included MotoNovo Finance.

Supreme Court ruled in August 2025 [1] that lenders had behaved unfairly where commissions were high or undisclosed which did create a conflict of interest between broker and customer.

Legal position is now clear and that means the FCA's proposed redress scheme could cover MotoNovo mis-sold finance agreements going back as far as 2007. If successful, the scheme could deliver more than £8 billion in refunds, with average payout likely to be around £700 per agreement [2].

Confirming Your Eligibility to Claim

Can I claim against MotoNovo Finance?

Yes, if you took out a hire purchase (HP) or personal contract purchase (PCP) deal with MotoNovo between 2007 and 2021 and weren’t told about broker commissions or alternative options, you may be eligible.

To confirm, review your contract carefully:

• Check for vague explanations about fees or interest rates.
• Look for signs of discretionary or hidden commissions.
• Note whether the dealership pushed additional products or extras aggressively.
• Determine if you were misled about how your rate was calculated.

Every case will be judged on its own merits, but if you think you have been treated unfairly or there's been a lack of transparency, you may have a MotoNovo finance claim.

The FCA has suggested that all affected customers in the period 6 April 2007 to 1 November 2024 will be included in the planned national redress scheme. A consultation is now underway, with the final rules expected in early 2026.

Recognising Mis-Sold Finance: A Quick Checklist

Many drivers never realised they were victims of mis-sold car finance. If your MotoNovo agreement included any of the following, it could qualify:

1. Discretionary Commission Arrangements – Brokers had the power to increase your interest rate, earning higher commissions as a result.
2. High Commission Arrangements – If commission made up 35% or more of your total credit cost or 10% of your loan, it should have been disclosed.
3. One lender deals only – Dealers who only offered one lender (e.g. MotoNovo) and stated it was the best deal.

Where any of the above were not fully explained, the FCA deems the relationship to be unfair under consumer credit legislation.

Step 1: Gather Your Documentation

Gather all of your evidence before you make a MotoNovo Finance claim . These are important to evidence mis-selling and will help to process your claim quicker.

Include the following documents:

• Your MotoNovo contract or credit agreement
• Letters, emails and text messages between yourself and the dealer or broker
• Misleading information, including advertisements or brochures used at the point of sale
• Evidence of all payments made

If you are missing any of the above, you can request copies from MotoNovo Finance [3] .

Refer to this car finance refund guide for advice on gathering and assessing your records.

Step 2: File a Complaint Directly with MotoNovo Finance

Once your paperwork is ready, file a formal complaint directly with MotoNovo Finance. Include your name, address, policy number, agreement date, and vehicle registration.

Your lender should acknowledge the complaint promptly and issue a final response within 8 weeks. Some responses may arrive sooner, depending on case complexity.

It’s worth noting that the FCA temporarily paused complaint handling [4] in while reviewing how best to manage historic finance claims. However, the regulator has since suggested that lenders should start responding again in 2026 once the new rules are finalised.

If you’ve already complained but not got a response, you will probably be covered by the FCA’s new redress scheme.

Step 3: Escalate to the Financial Ombudsman Service (FOS)

If MotoNovo dismisses your complaint or doesn't reply within the allotted time, you can take your complaint to the Financial Ombudsman Service.

The FOS must be approached within six months of your final response. You'll need to:

• Fill in personal details and provide contact information.
• Detail what occurred, the impact it had on you and what result you'd like to see.
• Attach copies of your paperwork and correspondence.

After submission, the Ombudsman will evaluate if the finance deal was unfair or unclear. If your claim is successful, they can direct MotoNovo to refund you overpaid interest, wipe unfair charges and pay you additional compensation for any inconvenience caused.

Step 4: Understand How Compensation Is Calculated

The redress MotoNovo Finance claims customers can expect to receive will depend on a number of factors:

• the size and term of your loan
• the commission structure that was applied
• how different your actual interest rate was from a fair market rate

Taken together, lenders could be expected to pay out between £6.8 billion and £9.7 billion collectively, depending on take up. In total, the scheme’s cost, including administration, could be over £11 billion, one of the biggest consumer redress schemes in UK history.

Step 5: Consider Professional Help

While you can submit a MotoNovo finance claim yourself, some consumers prefer assistance from a finance claims expert or regulated claims management company (CMC). Claim experts can assist you:

• with checking you’re eligible for a refund and helping you compile a robust evidence base
• when communicating with lenders and the Ombudsman
• to assess how much you could get back
• to follow FCA procedures

Always check that a CMC or solicitor is authorised to deal with financial claims, and be clear on any success fees or charges, before instructing them.

A claim via the Financial Ombudsman is free, but for complex cases, such as where a contract covers multiple products or years, using an experienced and trusted expert can make life much easier.

Step 6: Stay Updated on the FCA Consultation

The FCA’s consultation on the car finance redress scheme runs until 18 November 2025 [5], allowing lenders, consumers, and advocacy groups to give feedback.

There’s a separate deadline of 4 November 2025 for comments on extending firms’ complaint response times. If approved, lenders will have until 31 July 2026 to issue final responses under the new scheme.

Leasing contracts are excluded from this proposal, as they’re not governed by the same unfair relationship rules.

If the FCA finalises its plan, compensation payments could begin by late 2026, providing long-awaited redress for millions affected by the car finance scandal UK.

Step 7: Reclaim What You’re Owed

Approved refund process will be live shortly where eligible customers will be able to apply for a refund of car finance

What you can do now to prepare:

• Review old agreements
• Gather documents
• Make a complaint sooner rather than later
• Seek guidance from a trusted finance claims expert

To learn more about eligibility and process details, visit this MotoNovo finance claim page or the main mis-sold car finance resource.

FAQs About MotoNovo Finance Claims

Can I make a claim against MotoNovo Finance?

Yes. If you believe you were mis-sold a PCP or hire purchase deal, you may be entitled to compensation once the FCA’s redress scheme begins.

How much could I receive?

The average payout for a MotoNovo car finance claim could be around £700, but larger cases may yield several thousand pounds.

Can I claim if my agreement has ended?

Yes, expired contracts can still qualify if the mis-selling occurred within the eligible dates.

What if MotoNovo rejects my complaint?

You can escalate your case to the Financial Ombudsman Service, which will review it independently.

Do I need professional help?

No, but many consumers choose to use regulated CMCs or solicitors for expert guidance.

Conclusion

If you’ve ever had a car on MotoNovo finance in the last 17 years, it’s time to take a look at your contract. Millions of drivers across the UK could be entitled to a fair refund under the FCA’s proposed compensation scheme. Hidden commissions charged on loans have left many overpaying without even knowing it.

You can make a claim yourself, via the Ombudsman or with the help of a finance claims expert. The sooner you get your claim underway, the sooner you will be able to submit it when the scheme opens in 2026. No claim is just about your own money back, it’s also an opportunity to make finance more transparent and fair for the whole of the UK.

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References:

1. Supreme Court ruled in August 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. If successful, the scheme could deliver more than £8 billion in refunds, with average payout likely to be around £700 per agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
3. MotoNovo Finance - https://customer.motonovofinance.com/motor-finance-commission-complaints
4. FCA temporarily paused complaint handling - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. The FCA’s consultation on the car finance redress scheme runs until 18 November 2025 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme