Updated: 30 October 2025

Originally Published: 26 April 2025

MotoNovo Finance is once again in the firing line, over the long-running scandal of mis-sold car finance. Under proposals from the Financial Conduct Authority (FCA), a nationwide redress scheme could see millions of drivers across the UK receive refunds for overpaid interest which was used to cover hidden commissions. If you’ve been wondering, “Can I claim against MotoNovo Finance?”, the answer may well be yes. Find out everything you need to know about who is eligible, timescales and what this means for your MotoNovo Finance claim.

Who Can File a MotoNovo Finance Claim?

Anyone who entered into a car finance agreement with MotoNovo between 2007 and 2024 could be entitled to a MotoNovo refund. This category includes motor vehicle loans, such as car, van and motorcycle loans where a broker failed to disclose their commission to you fully, or they charged you an interest rate that was higher than they should have. Arrangements where the broker was allowed to increase your interest rate and thereby earn higher commission (these are known as 'discretionary commission arrangements', or DCAs) often resulted in you paying a higher price.

If your dealer didn’t clearly explain interest rates, payment terms, or hidden costs, or if you were pressured into unaffordable deals, you may have grounds for a refund. You can review your agreement using A Step-By-Step Guide to Filing a Complaint to start the process.

Why MotoNovo Finance Refunds Are Being Issued

The FCA found in its car finance mis-selling investigation that millions of consumers were paying more than they should, as a result of undisclosed commissions that lenders paid to brokers. The practice drove up the rates of interest, which is now considered an “unfair relationship” under consumer credit law.

The FCA has announced further investigations into the car finance sector as it works to rebuild trust and transparency. Debtors hit by misleading and confusing car finance agreements such as the one described here have been left with long-term debt and emotional distress, and there are calls for tighter regulation to protect consumers in the future.

The Court Cases That Changed Everything

A turning point came on 25 October 2024 when the Court of Appeal delivered its verdict in favour of consumers in three separate cases against MotoNovo [1]. The court decided that the customers Marcus Johnson and Andrew Wrench were not informed of the commissions, which was a breach of the lender's duty of disclosure.

But the Supreme Court in August 2025 clarified that not all commissions are unlawful [2]. Only undisclosed or exaggerated discretionary commissions can render a loan unfair. While this limited some legal arguments, it reinforced that consumers misled about commissions still have valid claims.

FCA’s Nationwide Compensation Scheme

Millions of car finance customers could soon be owed a refund. The FCA’s proposed compensation scheme [3] will see drivers refunded for mis-sold car finance. All agreements made between 6 April 2007 and 1 November 2024 are covered. This includes PCP and HP agreements.

According to FCA analysis, around 14 million finance agreements could qualify, with average payouts of £700 per customer, totalling more than £8 billion in redress [4]. You can follow the latest developments in car finance claims in the UK for updates on the rollout.

The proposed MotoNovo Finance compensation scheme will make it easy to make a claim so you can get a fair repayment quickly and without the need for lengthy court action. The FCA hopes to finalise the rules by early 2026, with payments to be made later that year.

How the FCA Defines Unfair Commission Arrangements

The regulator identified three commission types that could make a finance deal unfair if not disclosed:

1. Discretionary Commission Arrangements – Brokers could have increased your rate to earn more commission, without the customer knowing.
2. High Commission Arrangements – Where commissions exceeded 35% of the credit cost, customers should have been told.
3. Exclusive or Tied Lender Deals – Your broker may have limited your choice to a few lenders, to charge you more.

How Much Compensation Could You Receive?

The FCA guidance says the average refund is about £700 per MotoNovo claim, but the actual amount will vary. Each contract has different interest rates that were charged at different times. Larger vehicles and longer loan durations typically result in higher compensation.

The Financial Ombudsman Service (FOS) has also ordered firms to repay unfair charges [5]. This might also include the interest that you overpaid, plus 8% simple annual interest for the duration you were without your money.

If you are wondering, “Is MotoNovo Finance refunding mis-sold contracts?”, it’s a definite possibility, particularly if you were mis-sold on hidden commissions and/or misleading financing agreements.

How to File and Track Your MotoNovo Finance Claim

Steps to make a claim against MotoNovo Finance:

1. Collect Evidence – Get your finance agreement, car details and any letters you have had with the lender.
2. Make Your Complaint – Send MotoNovo Finance a letter explaining your problem and what you would like them to do about it.
3. Wait for a Response – The standard reply period is eight weeks, though lenders have until after 4 December 2025 to respond to complaints [6].
4. Escalate to the FOS – If unsatisfied, you can take your case to the Ombudsman for free.
5. Engage Professional Assistance – Work with a professional PCP claims company or finance claims expert to make the process much simpler.

For those still wondering, “How long does a PCP claim take?”, the process typically spans a few weeks to several months, depending on case complexity and FCA timelines.

Refund Timelines and What to Expect

The FCA’s redress scheme consultation opened in October 2025 [7]. Feedback is due by November 2025, with policy statements expected in early 2026.

If approved, most refunds, including those under a MotoNovo Finance claim, would be distributed from mid to late 2026. Consumers can still submit claims now, but most will not progress until after December 2025.

So, if you’re asking “When is the PCP payout?” or “How long does car finance claims take to pay out?”, expect final responses in 2026 once the FCA framework is in place.

What This Means for Affected Consumers

Taken together, the judgement and regulatory changes grant consumers powers they have never enjoyed previously to claim a PCP refund and challenge unfair deals. FCA's proposed scheme may signal the end of a drawn out saga that has eroded consumer confidence in motor lending.

For now, the best course of action is to:

• File your complaint early to secure your place in line.
• Keep copies of all communication.
• Follow updates on the car finance sector.

If your claim is delayed or complex, consult a finance claims expert to guide you through the process and ensure you get the compensation you deserve.

Frequently Asked Questions

Will I get a refund from MotoNovo Finance?

It is possible that you will get a refund from MotoNovo Finance if your car finance agreement has been mis-sold to you, for example due to hidden commissions or unfair lending.

How long does MotoNovo Finance claim take?

There is no guaranteed time frame in which you will get a decision on a MotoNovo Finance claim. Sometimes, the process can be as little as a few weeks, while more complex claims which have to be referred to the Financial Ombudsman can take several months.

Do I need a solicitor for my MotoNovo Finance PCP claim?

A solicitor is not required, but a finance claims expert on your side can remove the stress of filing since they manage the end-to-end process. Sometimes PCP claims can become complicated, and it is important to have support from someone, such as a finance claims expert who is familiar with the process.

What if MotoNovo Finance refused my claim?

If MotoNovo Finance rejects your claim then it is possible to make a further claim with the Financial Ombudsman, who has the power to ensure you are awarded the compensation due to you as a result of any mis-selling.

Final Thoughts

The 2025 updates have made it clearer than ever that mis-sold car finance agreements will not go unchallenged. Whether you’re seeking to refund your PCP, clarify “how long does a car finance claim take”, or find out “is MotoNovo Finance refunding?”, the path forward is well-defined.

Consumers who act now by filing a MotoNovo Finance claim through trusted channels stand the best chance of receiving full MotoNovo Finance compensation once the FCA’s scheme launches. For millions, this marks a major step toward fairness, transparency, and financial recovery.

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References:

1. the Court of Appeal delivered its verdict in favour of consumers in three separate cases against MotoNovo - https://www.judiciary.uk/judgments/johnson-and-wrench-v-firstrand-bank-and-hopcroft-v-close-brothers/
2. the Supreme Court in August 2025 clarified that not all commissions are unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. FCA’s proposed compensation scheme - https://www.fca.org.uk/publication/consultation/cp25-27.pdf
4. According to FCA analysis, around 14 million finance agreements could qualify, with average payouts of £700 per customer, totalling more than £8 billion in redress - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
5. The Financial Ombudsman Service (FOS) has also ordered firms to repay unfair charges - https://www.financial-ombudsman.org.uk/consumers/expect/compensation
6. lenders have until after 4 December 2025 to respond to complaints - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
7. The FCA’s redress scheme consultation opened in October 2025 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme