Can I Claim Against MotoNovo Finance in 2026? Compensation, Refunds & FCA Rules

Updated: 16 April 2026

Originally Published: 26 April 2025

If you have used MotoNovo Finance, recent developments may have raised an important question about whether your agreement could now be reviewed.

Can I claim against MotoNovo Finance in 2026?

For many customers, the answer is yes. The key is understanding how your agreement was structured and whether it falls within the FCA’s official car finance redress scheme.

The Financial Conduct Authority has now introduced a formal process for reviewing mis-sold car finance agreements across the UK [1]. This includes agreements arranged through MotoNovo Finance, covering both PCP claims and hire purchase agreements.

This is no longer a developing issue. The rules are now defined. The timelines are set. The way compensation is calculated is consistent across lenders.

This guide will show you how a MotoNovo finance claim works. It will help you understand if you might be eligible, how compensation is calculated, how long the process takes and how to get started with a car finance refund check.

Is MotoNovo Finance included in the FCA car finance scheme?

Yes, agreements that include MotoNovo Finance are in the FCA car finance redress scheme if they are eligible.

This generally includes:

• MotoNovo car finance agreements arranged via a dealer
• PCP claims where MotoNovo Finance is the lender
• Hire purchase agreements associated with MotoNovo

The majority of qualifying agreements were entered into between 6 April 2007 and 1 November 2024 and were for personal use vehicles (i.e. not business use).

It is important to understand that your agreement does not need to be active.

You may still be able to make a MotoNovo claim if:

• you have finished paying the agreement
• you settled early
• you no longer own the vehicle

The key factor is how the agreement was structured and explained at the time.

Why MotoNovo Finance agreements are being reviewed

To understand why MotoNovo claims are being considered, it helps to look at how car finance was typically sold.

For many customers, the process felt straightforward. You selected a car, agreed a monthly payment, and signed the finance agreement.

What was not always clear was how the finance itself was priced.

In many cases:

• dealerships received commission from lenders such as MotoNovo
• that commission could vary depending on the agreement
• the customer was not fully informed about how this worked

This created a situation where the dealer’s incentives were not always aligned with the customer’s best interests.

The FCA later reviewed these practices and found that many agreements lacked sufficient transparency. This is the foundation of the car finance scandal and the reason why compensation is now being considered.

The scale of the car finance scandal

One of the most important updates from the FCA is the confirmed scale of the issue.

This is not a small number of complaints. It is a market-wide problem that has affected millions of agreements over many years.

The FCA estimates that:

• around 12.1 million agreements are eligible for review
• total compensation will reach approximately £7.5 billion
• the total cost to lenders, including administration, will be around £9.1 billion [2]

These figures reflect the size of the UK car finance market and the widespread use of similar sales practices across different lenders.

For customers, this means that claims are being handled as part of a structured system rather than on a case-by-case basis.

What counts as mis-sold car finance?

Mis-sold car finance is not a single issue. It refers to situations where the agreement may have been unfair because key information was not properly explained.

The FCA has identified three main categories.

Discretionary commission arrangements

This is one of the most common issues behind MotoNovo finance claims.

Before January 2021, dealers could adjust interest rates within a permitted range. A higher rate could result in higher commission.

Many customers were not told:

• that the dealer could influence the interest rate
• that a lower rate may have been available
• that the dealer’s earnings depended on the rate

This lack of transparency is central to many PCP claims.

High commission structures

Some agreements involved particularly high levels of commission.

The FCA considers commission to be excessive where it reaches:

• 39 percent or more of the total cost of credit
• at least 10 percent of the loan amount

These cases often result in higher car finance compensation because the financial impact is more significant.

Limited lender choice or steering

In some cases, dealerships had preferred relationships with certain lenders.

If you were 'guided' towards MotoNovo Finance without being made aware of your other options, this may have affected your decision.

The central point is that you may not have been made aware of enough information to be able to make an informed decision.

A practical example of how mis-selling could affect you

To see what this means in practical terms let's look at a simple example.

You enter into a finance contract for £24,000 over 4 years.

You are offered an interest rate of 7 percent and agree, thinking this is normal.

If the dealer could have offered you 5 percent but chose not to tell you, this higher rate may have added hundreds or even thousands of pounds to the total cost.

This extra amount is made up of interest you will have to pay over the years.

This is the type of situation the FCA scheme is designed to address.

Who is eligible for a MotoNovo finance claim?

Eligibility is often broader than people expect.

You may be eligible if your experience included:

• no clear explanation of commission
• an interest rate that seemed higher than expected
• limited choice of lenders
• unclear or rushed explanations at the point of sale

You do not need to prove mis-selling yourself. The FCA scheme requires lenders to assess this based on your agreement.

When a claim may be less likely to succeed

While many agreements are eligible, some are less likely to result in compensation.

This includes:

• agreements with very low commission
• interest-free finance
• cases where no financial disadvantage can be shown
• claims already resolved through legal processes

These factors do not automatically prevent a claim, but they can influence the outcome.

How to start a MotoNovo finance claim

The process is more straightforward than many people expect.

Step one. Complete a car finance refund check

A car finance refund check is the simplest way to understand your position.

It allows you to assess:

• whether your agreement falls within the FCA scheme
• whether it shows signs of mis-selling
• whether it is worth proceeding

Many people complete this online using a finance claims expert. This can be done using basic information and does not require full documentation.

Step two. Submit your MotoNovo claim

You can submit your claim directly to the lender or choose support.

At this stage, the lender will review your agreement using FCA rules.

Step three. Review your outcome

You will receive a formal response explaining:

• whether your agreement qualifies
• whether compensation is due
• how the amount has been calculated

What happens after you submit a claim?

Once your claim is submitted, the process is handled by the lender.

They will:

• retrieve your agreement details
• assess commission structures
• apply FCA rules
• calculate compensation if applicable

If you disagree with the outcome, you may be able to escalate the matter.

What if you do not have your paperwork?

This is one of the most frequent questions.

You can still make a claim without your original documents.

Lenders are required to retain records and can usually provide your agreement, payment history, and interest rate details.

Basic information such as your name and approximate agreement date is often enough to begin.

Scheme 1 and Scheme 2 explained

To manage the scale of the car finance mis-selling scandal, the FCA has divided claims into two groups.

Scheme 1

Agreements from 6 April 2007 to 31 March 2014

• implementation ends 31 August 2026
• decisions issued within 3 months
• payments typically follow within one month

Average payout: around £734

Scheme 2

Agreements from 1 April 2014 to 1 November 2024

• implementation ends 30 June 2026
• decisions expected by September 2026
• payments typically follow within one month

Average payout: around £881

How much MotoNovo Finance compensation could you receive?

Compensation depends on the details of your agreement.

Average payouts

• around £829 per agreement

By type of mis-selling

• discretionary commission cases: around £810
• contractual tie cases: around £807
• high commission cases: around £1,203

Why compensation is not a full refund

Compensation is not designed to refund everything you paid.

Instead, it is based on:

• the difference between what you paid
• and what you would likely have paid if the agreement had been fair

Interest is then added.

How long does a PCP claim take?

It’s one of the most frequent questions.

If you make your claim in good time before FCA deadlines:

• Expect decisions in late 2026
• Expect payment to follow shortly
• Waiting will make the process longer

Asking how long does a PCP claim take is partly about timing, partly complexity.

When is the PCP payout?

Payouts 2026 are expected to begin from late 2026 for successful claims submitted within the FCA timelines.

Some cases may continue into 2027 depending on complexity.

How long does car finance claims take to pay out?

Once your claim is approved:

• some payments are made within weeks
• most are paid within one month
• complex cases may take longer

Do you need a finance claims expert?

You can submit a claim yourself for free.

You can also escalate to the Financial Ombudsman Service.

Some people choose to use a finance claims expert to:

• complete a car finance refund check
• handle communication
• reduce time and effort

This does not affect your eligibility or compensation.

Frequently Asked Questions

Can I make a MotoNovo Finance claim on behalf of someone who has passed away?

Yes. The FCA car finance scheme includes agreements where the original customer has died. Their estate may still be eligible for compensation.

As executor or beneficiary you can make a claim on their behalf. Give your contact details but explain that the person who entered into the agreement has passed away. Include any details you have about them and their finance agreement.

The finance company may request documentation (such as a will or grant of probate) to prove that you can collect any monies due.

Can I make a claim even if I no longer own the vehicle?

Yes. It's about how your agreement was set up and explained when you took it out, not whether it is still running.

This means you can still claim even if:

• you have finished repaying the finance
• you paid off your agreement early
• you no longer own the vehicle

The FCA car finance scheme applies to agreements made between April 2007 and November 2024, so many historic agreements may still be eligible.

Is MotoNovo Finance refunding customers?

All regulated lenders including MotoNovo Finance must adhere to FCA guidelines.

This includes:

• if your agreement is deemed unfair, you could be due a payout
• if your agreement is not within the qualifying criteria, you won't get a Motonovo refund

So although MotoNovo Finance aren't automatically refunding everyone, they are obliged to investigate claims according to the FCA car finance rules.

How do I know if I can make a MotoNovo claim?

You may be able to make a MotoNovo claim if:

• commission was not clearly explained
• your interest rate seemed higher than expected
• you were not shown alternative finance options
• the agreement felt unclear or rushed

You do not need to prove this yourself. A car finance refund check can help you understand whether your agreement may qualify.

How do I easily find out if I am eligible?

The easiest place to begin is by completing a car finance refund check.

This usually involves:

• confirming the name of the lender
• providing an estimated date of agreement
• identifying whether it was PCP or hire purchase

Many people complete a car finance refund check online with the help of a finance claims expert. This means they are able to check eligibility quickly without having to provide full documentation.

Can I make a PCP claim against MotoNovo Finance?

Yes, you may well be able to.

PCP claims are one of the most common type of car finance claims being assessed as part of the FCA scheme.

Where the PCP deal contained commission which was not explained to you, or the structure of the deal may have led to you paying higher costs than you should have, a PCP refund may be available.

What is a PCP refund and how does it work?

A PCP refund refers to compensation paid where a PCP agreement is found to have been mis-sold.

It is important to understand that:

• it is not a refund of the vehicle
• it is not based on returning the car in good condition

Instead, it is based on correcting the financial difference between what you paid and what you would have paid if the agreement had been fair.

How much MotoNovo finance compensation could I receive?

The amount you receive depends on your agreement and the type of mis-selling that occurred.

The FCA’s latest estimates put this at:

• £829 on average per agreement
• more for high commission deals

The exact amount of your car finance compensation will be based on how your agreement affected you financially.

Will I receive a full car finance refund?

No. Most customers do not receive a full refund of all payments.

Instead, compensation is based on:

• the difference between what you paid
• and what you should have paid

Interest is then added on top.

What types of agreement are covered?

The FCA car finance scheme generally covers:

• PCP claims
• hire purchase agreements
• other dealership-arranged car finance

If your MotoNovo car finance was arranged through a dealership and used for personal use, it may be worth checking.

What is the FCA car finance scheme?

The FCA car finance scheme is a structured process introduced to review mis-sold car finance agreements across the UK.

It ensures:

• consistent decision making across lenders
• standardised compensation calculations
• clear timelines for outcomes

It is part of a wider response to the car finance scandal.

What are Scheme 1 and Scheme 2?

The FCA has divided claims into two groups.

Scheme 1 covers older agreements from April 2007 to March 2014.

Scheme 2 covers more recent agreements from April 2014 to November 2024.

Each scheme has different timelines for decisions and payouts.

Should I claim now or wait?

You do not have to do anything immediately, but there are benefits to acting sooner rather than later.

Claiming now could:

• speed up the process
• allow you more control
• limit lender outreach

Waiting could still get you compensation, but it may take longer.

Do I have a better chance using a finance claims expert?

Using a finance claims expert will not increase your chances of success.

It could, however:

• help complete a car finance refund check
• help manage communication
• save time and effort

It is about convenience, not necessity.

What if my MotoNovo claim is rejected?

If your claim is rejected, you may still have options.

You can:

• review the lender’s explanation
• check whether FCA rules were applied correctly
• consider referring the case to the Financial Ombudsman

This is why it is important to understand how your decision was reached.

Is this part of the wider car finance scandal?

Yes.

MotoNovo finance claims are part of the wider car finance scandal that has affected multiple lenders across the UK.

The FCA introduced the redress scheme after identifying widespread issues with how commission and pricing were disclosed to customers.

How do I start a MotoNovo finance claim today?

The simplest starting point is a car finance refund check.

This allows you to:

• understand whether your agreement may qualify
• assess your next steps
• decide whether to proceed with a claim

Many people choose to do this online using a finance claims expert for speed and convenience.

Final thoughts

The position in 2026 is clear.

Car finance claims are now governed by a structured FCA framework with defined rules and timelines.

If your MotoNovo agreement involved mis-sold car finance, you now have a clear route to review and potential compensation.

The next step is simple.

Complete a car finance refund check.

Understand your position.

Decide what to do next.

_________

References:

1. The Financial Conduct Authority has now introduced a formal process for reviewing mis-sold car finance agreements across the UK - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
2. the total cost to lenders, including administration, will be around £9.1 billion - https://www.fca.org.uk/publication/policy/ps26-3.pdf