Updated: 21 August 2025

Originally Published: 23 March 2025

MotoNovo Finance is currently under investigation. This happened because of an allegation of mis-selling. Customers have therefore been claiming refunds and compensation from mis-selling. This came after unexpected fees left consumers feeling deceived.

Here, you will learn about recovering car finance compensation and filing PCP claims if you suspect unfair selling, including eligibility criteria, calculating compensation amounts, and the payment process. 

If you feel MotoNovo has overcharged you, read on to know more about MotoNovo finance refund. Find out essential information, including the steps and protections that might help you secure what you deserve. 

What Happened?

Did MotoNovo use discretionary commission? The Court of Appeal said yes. Last year, the court ruled against MotoNovo Finance in two cases regarding mis-selling [1]. 

The issue stemmed from complaints that the firm has been charging consumers extra for undisclosed commissions paid to dealers. Those who acquired their vehicle using MotoNovo FInance should revisit their contracts. 

So, is MotoNovo Finance refunding? The answer is that the company is open to reviewing your claim [2] and following the guidelines set by the FCA regarding the car finance scandal. Remember, when a company makes an error or acts unjustly, it creates an opportunity for you to file a claim and recover your funds. 

There are several types of compensation available [3]. For example, you might receive a direct payment to cover any financial loss you have incurred. 

In other cases, the solution is not just about cash but also non-monetary remedies. Such cases may include fixing inaccuracies on your credit report or reinstating a lost no-claims discount. 

How Compensation for Mis-sold MotoNovo Finance Agreement Is Calculated

Calculating your compensation for your MotoNovo car finance claim depends on several factors. The amount you receive is set by issues such as excess interest, concealed commission fees, and contract conditions that many see as unfair.

So, the Financial Ombudsman Service (FOS) asks questions like “Did MotoNovo overcharge?” and how much did you overpay because of these extra fees.

Sometimes, a specific formula is used to determine the proper amount when the ombudsman does not have all the details that the business folds.

For example, if you have been given unsuitable investment advice, the business may need to compare the actual value of your investment with a better option that was available at that time. 

The ombudsman lays out these calculation methods clearly so that you can follow every step.

The ombudsman sets out these calculation methods for you to follow.

MotoNovo Finance Refund Timelines

Consumers are given a fixed period to submit their complaints [4]. Typically, you have six years from the date of the incident to file a claim [5]. If you discover the issue later on, a three-year period from that point applies. 

In some special situations, such as when prolonged illness occurs, claims may be considered even after these deadlines if the evidence supports your case. 

On the business side, companies must meet strict response deadlines. In matters involving payment services and electronic money, they are required to reply within 15 days. Most complaints typically receive responses within eight weeks, although temporary rules may apply for some finance cases. 

However, the eight-week deadline for lenders to address motor finance complaints involving DCAs stands in suspension at this time. The FCA decided to continue extending the current suspension of the deadline for lenders to reply to motor finance complaints handled through DCAs until 4 December 2025 [6]. 

The issuance of the final response is a crucial milestone. It must inform you of your right to escalate the matter to the ombudsman. Nevertheless, companies have the option to settle a complaint proactively. They can offer a settlement after the investigation begins, helping ensure a prompt resolution.

What Customers Can Expect from MotoNovo Refund Payouts

To give you an example, you may notice that refund amounts vary greatly. In the landmark case involving Marcus Johnson versus MotoNovo Finance, the complainant received a payout of £3,200. 

Meanwhile, finance claims experts highlight the FCA’s statement that suggest average payouts could reach £950 per eligible agreement [7]. These numbers offer you a glimpse into what might be possible. 

Next Steps for Affected Customers

If you believe you were mis-sold car finance by MotoNovo, gather your paperwork together first.

You must collect contracts, statements and correspondence to support your claim. Afterwards, contact MotoNovo or your financial professional.

You might be wondering: How can professional help assist you? Some lawyers and claims management companies can assist you and refer you to legal experts if needed. This way, you gain access to the specialised knowledge needed as you move forward with your case.

At Reclaim247, we search back to 2007 using just your name, address, and date of birth, with no additional paperwork needed. It takes 60 seconds to start your claim. Give it a try and your old car finance deal might be hiding a payday. It’s your money. Don’t let it go unclaimed.

The Takeaway

Every step of filing a car finance claim is important. The process protects your rights while providing clear guidelines for filing a complaint.

Getting started and getting advice when needed increases your chances of resolving your issue quickly.

FAQs

Do I need my car registration or finance paperwork to claim?

No. Most lenders can locate your agreement from your personal details.

What if my lender has gone out of business?

The FCA’s redress scheme is expected to address claims even where the lender no longer operates.

Will claims be automatic?

The FCA consultation in October 2025 [8] will decide if claims are automatic or require an opt-in.

How much compensation could I get?

It depends on how much extra interest you paid, but average payouts could be around £950.

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1. the court ruled against MotoNovo Finance in two cases regarding misselling - https://www.judiciary.uk/judgments/johnson-and-wrench-v-firstrand-bank-and-hopcroft-v-close-brothers/
2. Motonovo is open to reviewing your claim - https://customer.motonovofinance.com/motor-finance-commission-complaints
3. types of compensation available - https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/understanding-compensation
4. submit their complaints - https://www.financial-ombudsman.org.uk/make-complaint
5. consumers have six years from the date of the incident to file a claim - https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/time-limits-businesses
6. suspension of the deadline for lenders to reply to motor finance complaints handled through DCAs until 4 December 2025 - https://www.fca.org.uk/news/statements/extension-motor-finance-complaint-handling-pause-confirmed
7. average payouts could reach £950 per eligible agreement - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator
8. FCA consultation scheduled for October 2025 - https://www.fca.org.uk/news/statements/fca-consult-compensation-scheme-motor-finance-customers