Updated: 9 September 2025

Originally Published: 26 April 2025

UK drivers who have signed car finance agreements with MotoNovo Finance are now re-examining their contracts after facing extra fees and higher charges, thanks to the Financial Conduct Authority’s review of motor mis-selling.

With this, individuals who are looking for ways to recover their money are given a chance to receive compensation for their losses. This article will walk you through the facts, qualifications, and process of submitting a MotoNovo Finance claim. 

Who Can Claim a Refund?

If you are wondering, “Can I claim against MotoNovo Finance?” The answer is yes. All consumers who entered into car finance deals with MotoNovo between 2007 and 2021 [1] may be eligible for a MotoNovo refund. 

The agreements could pertain to different types of vehicles like cars, vans, campervans, and motorcycles.

Keep in mind that eligibility covers cases where the consumer was not sufficiently made aware of every fee or charge. This can include discretionary commission arrangements (DCAs) between the finance provider and the broker, as well as other hidden charges. 

Eligibility for Claims

Remember that eligibility includes situations in which the customer was not adequately informed of all fees and charges. This could include other hidden fees, such as discretionary commission agreements (DCAs) between the broker and the lender.

The clearest indicators are mis-selling, complex agreements, pressure to borrow more, undisclosed fees and commissions, surprise interest rates and misleading advertising.

Inaccurate or incomplete information regarding your finance agreement, including the cost of credit or optional extras, you could be due a refund.

If there were any unstated costs or taxes in the contract you signed, you might also be eligible for a refund. This covers any expenses that were unclearly mentioned or concealed in the fine print. 

It could also be grounds for a claim if you were marketed a product that did not fit your financial circumstances, such as a high-interest loan, even if you signed a joint agreement without being fully informed of its terms or the entire cost. 

Here are some guide questions to help you identify your eligibility.

• Did your dealer fully explain the agreement details, including costs, interest rates, and payment terms?
• Were you offered every financing option that suits your financial means?
• Were you pressured into getting a deal that does not fit your current economic situation?
• Were you made to feel compelled to buy extra services, like insurance, warranties, and accessories that you did not need?
• Upon starting to pay your dues, were there any fees or charges not mentioned when you signed the agreement? Were these included in the contract?
• Did the interest rate turn out to be higher than you expected?
• Were the promotional materials you received overly optimistic or inaccurate based on the actual terms?

Why MotoNovo Finance Refunds are Being Issued

The issue of filing for MotoNovo finance refunds is a result of the review by the Financial Conduct Authority (FCA) on commission arrangements employed by motor lending companies over a number of years. They discovered that some consumers had been paying additional fees on their contracts including hidden or undisclosed commissions. 

Long-Term Financial Effects on Consumers

Customers can find themselves in serious long-term financial distress if they sign misleading financing deals.

Individuals often end up buried in increasing levels of debt as a result of being misled about the finer details of their financing either due to vague terms or undisclosed commissions.

Because of this, the situation causes more than just immediate financial strain, resulting in:

• Increasing debt
• Emotional distress
• Loss of assets
• Disruption of long-term goals

Wider repercussions for the car finance sector

Mis-sold agreements damage not just individual consumers but the car finance sector too. The industry can be damaged and its reputation hurt when trust is lost. Auto finance markets could see less activity and lower sales if customers become more suspicious or reluctant to engage with auto finance companies.

If the number of complaints increases, it is likely that regulators such as the FCA will step in and implement tighter rules and increased regulation. 

Mis-selling-related businesses have a damaged reputation, which makes it harder to draw in new clients and keep hold of current ones. For many organisations, regaining the trust of their clients is an expensive and time-consuming undertaking.

Court of Appeals Issued a Legal Foundation

The most significant development regarding car financing was the Court of Appeal’s decision, which was more favourable toward consumers.

On 25 October 2024, the court issued a ruling on three landmark cases [2] against major providers, two of which involved Firstrand Bank Ltd, trading as MotoNovo Finance.

Andrew Wrench and Marcus Johnson both filed separate charges against the company, alleging undeclared commissions. Mr. Johnson was unaware that his dealer was paid £1,650.95 under his contract, and Mr. Wrench was not given enough commission explanations. 

The court ruled that the absence of specific disclosure precluded the customer from providing informed consent, which violated the lenders’ and dealers’ fiduciary duties.

The ruling expanded and strengthened the protections given to drivers through existing consumer protection laws. Moreover, it established these additional regulations as a law that car finance firms are required to follow. 

However, keep in mind that the lenders involved in the three landmark cases have filed motions for appeal to the Supreme Court which released a ruling last August.

Supreme Court Ruling: An Overturned Decision

According to the Supreme Court, not all commissions are automatically unlawful. [3] But it decided that secret or overstated discretionary commissions can be an "unfair relationship" under consumer credit law. 

Of the three cases put forward, only one, by a claimant named Marcus Johnson, was successful.

The judgement in Johnson's case, on a different but similar basis, was that the rate of interest had been artificially increased by the commissions, and that this made the deal not fair under the Consumer Credit Act. 

It dismissed broader arguments about fiduciary duty, and also allegations about bribery, deciding that the car dealers are not agents for the consumers for the purpose of the sales, thus limiting the scope for legal action but reinforcing the argument that some of the agreements were unfair when the commission was undisclosed. 

It places greater emphasis on regulators and the industry to act, particularly where commissions were high and undisclosed. So most MotoNovo Finance commission claims should still be valid. 

Other Legal Actions and Consumer Rights

The FCA already banned DCAs back in January 2021 [4], years before the court’s decision. This action was based on the Financial Services and Markets Act 2000. The watchdog is conducting an ongoing review to further examine and correct harmful lending practices. 

Aside from this, drivers’ rights are protected by the Consumer Rights Act 2015, the Consumer Protection from Unfair Trading Regulations 2008, the Consumer Credit Act 1974, and the FCA Consumer Credit Sourcebook.

What Compensation Could You Receive?

The FCA’s move could lead to significant refunds for millions of affected consumers. The average redress that you can expect to receive for a mis-sold MotoNovo Finance PCP contract will be dependent on both the terms of the agreement as well as the specific details of the deal itself. 

FCA guidance indicates that the average level of compensation for a discretionary commission claim is approximately £950 per agreement [5]. However, it is important to note that the actual amount of compensation will always vary in accordance with the individual details of a case. For some MotoNovo Finance consumers, this could be the equivalent of a small refund. For others, it could be worth several thousand pounds.

You should be aware that the Financial Ombudsman Service has issued laws requiring businesses to pay clients who have received unfair treatment [6]. A lot of essential elements influence refund amounts, and understanding these characteristics is critical to estimating how much you may get. 

One thing to remember is the car's value. More expensive vehicles will offer more compensation since the finance costs are higher. The length of the finance deal is another thing to keep an eye on because the longer the contract, the more overpayment is added.

What This Means For You

According to the FOS, it can compel the provider to reverse the damage by paying monetary compensation to cover the financial loss, by paying money to acknowledge the impact of the malpractice, or by giving compensation without using money.

So, is MotoNovo Finance refunding mis-sold contracts? Likely. The Ombudsman can order a firm to refund the excess interest paid, pay for financial losses, add interest on the refunded amount, or cover extra costs incurred by the customer. Non-monetary damages, such as stress or inconvenience, might also be included in the calculation.

Interest may be added at a rate of 8% simple interest per year for the time you were without your funds. 

How Compensation is Calculated

Your entitlement to MotoNovo Finance compensation is determined by the FOS using a comprehensive methodology that considers a variety of factors. 

The total overpayments, or the difference between what you paid throughout the length of the loan and what you would have paid if the terms had been acceptable, are one important aspect. This covers any exaggerated expenses or unstated fees.

Interest overpayments, based on the difference between the rate you paid and the average rate for similar loans, are another element to consider.

How to File a Claim Against MotoNovo Finance

If you plan to file a MotoNovo claim, you need to consider a few key points. One should reduce any problems by following the guide below.

A Step-By-Step Guide to Filing a Complaint

1. Gather Your Information

Before you begin your complaint, gather all the documents and details related to your financial agreement. 

This covers your full name, contact information, policy or account number, the signing date, and your vehicle’s details, such as make, model, and registration. It is also wise to keep any messages exchanged with MotoNovo Finance, as these can support the claim.

2. Contact MotoNovo Finance

You need to get in touch with MotoNovo Finance using their phone, email, or website form, if available. You should clearly explain the issues encountered with the contract, describe its effects, and attach any evidence.

The written note must also state the result expected, such as a refund or other form of payment.

3. Wait for a Written Response

After you have submitted your complaint, wait for the firm to reply within the set period. One might receive a written answer that explains why a complete reply is not possible right now and indicates when a final decision will be given.

However, as a temporary concession, financial businesses that have complaints already made against them are being allowed until after 4 December 2025 to respond to these complaints. This means that although you can still make a claim against MotoNovo Finance today, in most cases the claim will not be progressed until after this date.

4. Obtain a Final Response

The last correspondence you should receive from the provider is the final response. It would state the type of remedy recommended by MotoNovo Finance.

5. Consider MotoNovo’s Recommendations

This is the time when you should weigh the value of your contract and its impacts against the offer. 

If you find it fair, you can go ahead and express your agreement and work with the firm to settle the matter. However, if their reply does not resolve your issue, prepare to take the next step. 

6. Escalate Your Complaint to the FOS

If you are not satisfied with their response or you do not hear back from them within the prescribed timeframe, this is when you may forward your complaint to the FOS. 

Their free service is accessible via their website. You just need to complete their form, including all the necessary details and documentation. 

7. Review the FOS’s Recommendations

The Ombudsman will assess your case and may ask for more information while communicating with MotoNovo. They aim to resolve your complaint fairly. If it rules in your favour, they will instruct the firm to compensate you. 

Keep in mind that accepting their decision may limit any further legal steps in the resolved case. 

8. Consider Legal Advice

If your situation involves complex issues or you plan to take further action, seek independent legal advice or get the help of a finance claims expert. This is useful if you think a court action might be needed.

MotoNovo Finance Refund Timelines

Recent guidelines released by the financial regulator have set out the timeframes for resolving claims. Here are some of the most essential dates and periods you need to remember:

• 8 Weeks

This is the standard waiting period for a response from MotoNovo after your initial complaint. 

• 15 Months from Filing

Consumers have up to 15 months from the date they first file a complaint to escalate it if needed.

• 1–3 April 2025

The Supreme Court considered appeals concerning the Court of Appeal's ruling on hidden car finance commissions. 

• May 2025

FCA continues to review the motor finance industry and will outline next steps in its investigation.

• August 2025

In a significant Supreme Court ruling, it was decided that not all commissions are automatically unlawful. However, the Court ruled that hidden or inflated discretionary commissions may still constitute an “unfair relationship” in line with consumer credit law. This means that most MotoNovo Finance commission claims are still likely to be valid.

• Until 4 December 2025

Financial businesses currently dealing with complaints are given a small reprieve by giving them until after 4 December 2025 to reply to these complaints [7]. This means that while you can still submit your MotoNovo Finance claim today, most cases will not progress until after this date.

• October 2025

The FCA will publish a redress scheme consultation [8] detailing the mechanics of the UK-wide compensation scheme. The consultation period will last approximately six weeks, with final redress rules expected in early 2026. This now makes it unlikely that we will see any redress payments until later in 2026. 

• July 2026

If you have not filed your complaint with the FOS, you have until July 2026 to do so. 

Armed with the latest developments in car finance claims in the UK, MotoNovo Finance customers can claim back overpayments due to unfair lending.

Factors that Influence the Claims Process

The following essential steps are typically included in the claims process:

• Filing
• Investigation
• Final decision

The length of time a claim may take however may also depend on other factors. The complexity of your case for instance can have an effect on the time it takes to process a claim that may raise significant legal issues or has a large number of documents.

Persistent communication is critical throughout the claims process. This includes ongoing contact with MotoNovo Finance and the FOS. It is crucial to maintain contact to follow up on any delays or hold-ups and to ensure your claim is handled promptly. 

To avoid unnecessary delays and ensure that your claim is handled without extra issues, you must be proactive and careful in remembering important dates. 

Next Steps for Affected Consumers

Submitting your complaint is just the start. Pay close attention to any reply from MotoNovo. The goal is to secure a final response that offers a favourable remedy, so if you do not get a reply or the redress you are looking for, you can bring your case to the FOS. 

If you face challenges such as a serious illness, be sure to inform your provider when filing a claim. In fact, letting them know about any special issues may influence how your case is handled.

The FOS will review your complaint and share details with you and MotoNovo. Nevertheless, do not forget to follow up on your complaint to know how the case is going. 

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 or a reputable PCP claims company on your side significantly increases your chances of receiving the best possible refund. 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 have the power to ensure you are awarded the compensation due to you as a result of any mis-selling.

Conclusion

Consumers who have been charged hidden commissions and extra fees on their car finance deals now have a way to claim MotoNovo compensation. The process has been clarified by regulatory reviews and court cases, giving you the edge you need to file a case.

You have a strong chance of getting your money back if you know your rights and take the necessary actions. Taking action right away could help you get your money back if you think you were overcharged. 

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References:

1. consumers who entered into car finance deals with MotoNovo between 2007 and 2021 - https://www.fca.org.uk/consumers/car-finance-complaints#section-who-this-applies-to
2. On 25 October 2024, the court issued a ruling on three landmark cases - https://www.judiciary.uk/judgments/johnson-and-wrench-v-firstrand-bank-and-hopcroft-v-close-brothers/
3. Supreme Court ruling - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
4. The FCA already banned DCAs back in January 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
5. average level of compensation for a discretionary commission claim is approximately £950 per agreement - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator
6. the Financial Ombudsman Service has issued laws requiring businesses to pay clients who have received unfair treatment - https://www.financial-ombudsman.org.uk/consumers/expect/compensation
7. lenders given until after 4 December 2025 to reply to these complaints - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
8. redress scheme consultation - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme