Updated: 31 July 2026

Originally Published: 26 April 2025

If you've had a PCP car finance or Hire Purchase agreement with MotoNovo Finance, you may be wondering whether the ongoing car finance scandal could affect you.

The investigation into mis-sold car finance has become one of the UK's largest consumer redress programmes. The Financial Conduct Authority (FCA) has proposed an industry-wide compensation scheme covering millions of historic finance agreements, including eligible agreements arranged through MotoNovo Finance. While legal challenges have delayed the rollout, the regulator continues to prepare for a scheme that could result in around £7.5 billion being paid to eligible consumers.

So, do I have a claim against MotoNovo Finance? The short answer is, it depends on the individual facts of your agreement. Not every customer will be eligible, however, if you took out personal use finance between 6 April 2007 and 1 November 2024, then it may be worth seeing if your agreement falls within the scope of the FCA's proposed redress scheme.

This guide explains everything you need to know about making a MotoNovo finance claim, including the latest regulatory developments, who may be eligible, whether MotoNovo Finance is refunding customers, how MotoNovo finance compensation could work, and what the current delays mean for motorists.

We’ll answer some of the most frequently asked questions about car finance claims, such as how long does a PCP claim take, when is the PCP payout, and how long do car finance claims take to pay out. If you’re thinking about making a car finance claim, this guide will explain your options and direct you to more detailed guides where necessary.

What's Changed Since Our Last Update?

As we last updated this guide in April 2026, the Financial Conduct Authority (FCA) had just finalised its proposed redress scheme for motorists mis-sold car finance. Many people had then expected car finance compensation decisions and payments to start later in the year.

Since then, several important developments have changed the expected timetable.

The most significant is a series of legal challenges brought against parts of the FCA's proposed compensation scheme. Consumer group Consumer Voice, together with lenders including Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance, has challenged aspects of the FCA's methodology through the Upper Tribunal [1].

As a result, the Tribunal has granted a partial suspension of parts of the scheme [2] while those proceedings continue. Although this has delayed implementation, it does not mean the proposed compensation scheme has been abandoned.

The FCA has consistently said that it is committed to providing a fair and consistent outcome for consumers who may have been mis-sold car finance. Lenders, including MotoNovo Finance, are maintaining their preparations for the proposed scheme while awaiting the outcome of the legal process.

For consumers, the biggest impact is timing. Widespread car finance claims payments that many expected during 2026 are now widely anticipated to begin during 2027, although this remains subject to the outcome of the Tribunal proceedings and any resulting changes to the FCA's proposals.

There has also been increased regulatory scrutiny of how car finance claims are advertised. During 2026, the FCA worked with other regulators to tackle misleading promotions that overstated the likelihood or speed of compensation [3] or failed to make it clear that consumers are free to complain directly to their lender without paying a third party. The regulator has removed around 170 adverts as part of that ongoing work.

Despite these delays, the overall scale of the proposed scheme remains unchanged. The FCA estimates that around 12.1 million finance agreements entered into between 6 April 2007 and 1 November 2024 could fall within the scope of the redress scheme, with around £7.5 billion expected to be paid to eligible consumers if it proceeds as proposed [4].

The key message for anyone thinking of making a MotoNovo finance claim is that it is being delayed not cancelled. Although the final timetable is not yet clear, the FCA is still working hard to implement the proposed compensation scheme. The fact that the settlement date has moved does not mean the claim process is dead and motorists can still keep informed, check their eligibility and follow developments.

Why Is MotoNovo Part of the Car Finance Scandal?

MotoNovo Finance is one of several lenders whose historic motor finance agreements have come under scrutiny as part of the UK's wider car finance scandal.

Like many lenders, MotoNovo worked with dealerships across the UK to provide finance for customers buying vehicles. For many motorists, the process appeared straightforward. They chose a car, discussed their monthly payments with the dealer and signed a finance agreement, often without giving much thought to how the finance itself had been arranged.

Years later, concerns have been raised about whether some customers were given enough information to make a fully informed decision before entering into those agreements.

The FCA said the focus of its review was whether some dealers and lenders had been clear enough about commission payments and other elements of the finance process. In particular, the regulator had been looking at whether some sales practices may have led to customers paying more than they otherwise would have without being clear why.

That doesn't mean every MotoNovo customer was affected or that every agreement involved mis-sold PCP car finance. Each case depends on its own circumstances, including when the agreement was taken out, how it was arranged and the information provided during the sales process.

The proposed FCA redress scheme is based on this principle. Instead of deeming every agreement unfair, it requires lenders to assess eligible finance agreements, against a consistent set of criteria, to see whether car finance compensation is payable.

MotoNovo is by no means the only lender involved. The FCA's investigation spans a large section of the UK motor finance market, and several of the largest lenders are also carrying out reviews of historic agreements as part of the wider industry response to concerns about the mis-selling of car finance. The regulator has estimated that as many as 12.1 million agreements made between 6 April 2007 and 1 November 2024 could potentially be caught by the proposed scheme.

For motorists, the important point is that having a MotoNovo agreement does not automatically mean you are entitled to compensation. Equally, you shouldn't assume you're ineligible simply because your agreement has ended, you've changed vehicles or you no longer have the paperwork. Eligibility depends on the individual facts of your agreement and how it was arranged.

If you're trying to understand why some agreements may qualify for MotoNovo finance compensation, including the role of commission arrangements and the FCA's concerns about overcharging, our dedicated guide explains the issues in more detail -> MotoNovo Finance Refunds & Compensation for Overcharging & Discretionary Commission

What Went Wrong With Some MotoNovo Finance Agreements?

Arranging PCP car finance or a Hire Purchase agreement was often just part of the process of buying a car for many motorists. Customers were often more focused on choosing the right vehicle and finding a low monthly payment, rather than on how the finance was structured.

Customers trusted that the dealer would make a recommendation for the right finance product and assumed that a fair deal had been presented to them.

However, according to the FCA, some consumers may not have had all of the information they needed to make a fully informed decision before signing their agreement.

One of the regulator's main concerns was transparency. Some finance agreements may not have clearly explained how the dealership was being paid, whether commission formed part of the transaction or whether that commission could have influenced the finance being offered. Without that information, some consumers may have agreed to finance terms without fully understanding how the recommendation had been reached.

These concerns apply to parts of the wider car finance mis-selling investigation and are one of the reasons the FCA has proposed an industry-wide compensation scheme.

It's important to remember that not every MotoNovo agreement will have been affected. Many customers received finance that was suitable for their circumstances and properly explained at the time. The FCA is not suggesting that every agreement involving MotoNovo Finance was unfair.

Instead, the proposed scheme is designed to identify individual cases where customers may have suffered financial detriment because important information wasn't disclosed or because the finance arrangement may not have been presented fairly.

This is important as it means that just because a client may have a PCP claim (or other car finance claim) they are not automatically entitled to compensation. All agreements need to be reviewed on a case-by-case basis and compared to the FCA's expected eligibility requirements.

If your agreement is found to fall within the scope of the scheme, you could become eligible for car finance compensation. If not, no MotoNovo refund would be payable under the FCA's proposals.

Understanding exactly how commission arrangements, overcharging and other sales practices may have affected individual agreements can be complex. Rather than covering those issues in detail here, we've created a dedicated guide explaining how the proposed MotoNovo finance compensation scheme could work and the circumstances in which compensation may be available -> MotoNovo Finance Refunds & Compensation for Overcharging & Discretionary Commission

Can I Claim Against MotoNovo Finance?

Whether you can make a MotoNovo finance claim depends on the individual circumstances of your agreement. Simply having finance with MotoNovo doesn't automatically mean you're entitled to compensation, but it also doesn't mean you're excluded.

The FCA's proposed redress scheme will assess eligible agreements on a case by case basis, considering how the finance was put in place and if the customer was provided with the information they needed to make an informed decision.

You may wish to explore a MotoNovo claim if your finance agreement:

• was arranged for personal use between 6 April 2007 and 1 November 2024
• was a PCP car finance or Hire Purchase agreement arranged through a dealership
• wasn't fully explained before you signed the agreement
• involved commission or other important information that may not have been clearly disclosed

Eligibility isn't limited to customers with active finance agreements. You may still be able to make a car finance claim if:

• you've finished paying off the agreement
• you settled the finance early
• you've sold or part-exchanged the vehicle
• you no longer have your original paperwork
• the dealership where you bought the vehicle has since closed

Many motorists are surprised to learn they don't need every document before exploring their options. A car finance refund check can often be completed using basic information such as your name, previous addresses and an approximate date when the finance was taken out. Some finance claims experts can also help trace historic agreements held by lenders and credit reference agencies if you've misplaced your paperwork.

It's equally important to remember that making enquiries doesn't guarantee you'll receive MotoNovo finance compensation. Every agreement must still be reviewed against the FCA's proposed criteria, and some customers may not qualify for a MotoNovo refund.

If you're wondering "Can I claim against MotoNovo Finance?", the best starting point is to understand whether your agreement is likely to fall within the scope of the FCA's proposed scheme. If it does, you can then decide whether to complain directly to MotoNovo Finance, seek independent legal advice or use a regulated claims management company. Whichever route you choose, you remain free to make your own decision, and you're not required to use a third party to pursue a claim.

If you'd like a detailed walkthrough of the claims process, including what information you'll need, how a PCP claim check works and what happens after you submit a claim, read our dedicated guide -> How to Claim Against MotoNovo Finance: Step-by-Step Guide for UK Drivers

Latest FCA Compensation Update for MotoNovo Customers

If you're considering a MotoNovo finance claim, one of the biggest questions is what happens next and when eligible motorists could actually receive compensation.

The answer has changed since this guide was first published.

Earlier in 2026, the FCA announced a proposed industry-wide redress scheme [5] that would require lenders to review eligible finance agreements and compensate customers where appropriate. At the time, many people expected decisions and payments to begin during the second half of the year.

However, subsequent legal challenges have delayed that timetable.

Several organisations, including Consumer Voice and a number of motor finance lenders, have challenged aspects of the FCA's proposed methodology through the Upper Tribunal. While those proceedings continue, parts of the proposed scheme remain subject to a partial suspension.

For consumers this means there is still no confirmed date for the start of mass payments. Preparations are ongoing throughout the industry, but many now believe the bulk of payments will not start until 2027. This is dependent on the outcome of the legal process.

Is MotoNovo Finance Refunding Customers?

One of the questions we hear most often is: "Is MotoNovo Finance refunding customers?"

At the time of writing, MotoNovo Finance is not automatically issuing refunds to everyone who has ever taken out finance.

Instead, like other lenders that fall within the FCA's proposed scheme, MotoNovo is expected to follow the regulator's final requirements once the legal challenges have been resolved and implementation can proceed.

If your agreement is ultimately found to meet the FCA's eligibility criteria, you may become entitled to MotoNovo finance compensation. If it does not, a MotoNovo refund would not be payable under the proposed scheme.

How Long Does a PCP Claim Take?

Another common question is "How long does a PCP claim take?"

Unfortunately, there is no single answer.

Under the FCA's original proposals, lenders would have begun reviewing eligible agreements during 2026 before issuing decisions in stages. Because implementation has been delayed, those timelines have shifted.

The overall length of a PCP claim will depend on several factors, including:

• the outcome of the legal proceedings
• when the FCA confirms the final implementation timetable
• the complexity of your agreement
• the volume of claims being reviewed by lenders

For that reason, anyone making PCP claims should be prepared for the process to take longer than originally expected.

When Is the PCP Payout?

It's also understandable to ask "When is the PCP payout?"

No specific payment dates have been agreed but, subject to the legal challenges being overcome and the FCA going ahead with its proposed scheme, the widespread expectation now is that payments of PCP refunds and car finance compensation will be more likely to start during 2027.

The regulator has repeatedly stated that its objective is to ensure compensation is delivered consistently and fairly, even if that means consumers have to wait longer than originally anticipated.

How Long Does Car Finance Claims Take to Pay Out?

Search interest has also grown around "How long does car finance claims take to pay out?"

The simple answer is that there is no fixed timeframe.

Even once the FCA confirms the final process, not every agreement will be reviewed at the same speed. Some cases may be relatively straightforward, while others could require more detailed assessment before a decision is reached.

Consumers are also being warned about websites or adverts that offer a guaranteed date of payment or that say money will be paid back over a certain number of weeks. The FCA has said it would be concerned about any such guarantees or minimum time-frames, as it has already banned a number of misleading promotions.

What Should MotoNovo Customers Do Now?

Although the timetable has changed, there is no indication that eligible consumers will lose the opportunity to have their agreements reviewed simply because compensation has been delayed.

If you believe your agreement could fall within the scope of the proposed scheme, now is a good time to:

• keep any finance documents or correspondence you still have
• make a note of when your agreement was taken out and who arranged it
• follow updates from the FCA and your lender
• consider completing a car finance refund check if you want to understand whether your agreement may be eligible

Some motorists also choose to speak with a regulated finance claims expert to better understand the options available to them, although you remain free to complain directly to MotoNovo Finance yourself if you prefer.

As the FCA continues working towards implementation, we'll keep this guide updated with the latest developments affecting MotoNovo finance compensation and the wider FCA car finance redress scheme.

How Much Could MotoNovo Finance Compensation Be?

There isn't a standard amount of MotoNovo finance compensation, and no two car finance claims are exactly the same.

If you are eligible for the FCA's proposed redress scheme, the size of your award will depend on the individual circumstances of your agreement. This will include when you took out the finance, how it was arranged and whether the FCA determines you have suffered financial detriment.

The FCA has estimated that eligible consumers could receive an average of around £829 per agreement across the proposed scheme [6]. This is only an estimate based on millions of finance agreements and is not a guaranteed payout.

Some drivers could receive more, and some may receive less or no compensation at all.

It's also worth noting that car finance compensation is not designed to refund you all of the payments you have made under your finance agreement. Instead, the proposed scheme aims to put eligible consumers back into the financial position they might have been in if their agreement had been arranged fairly. Depending on the circumstances, this could include compensation for additional costs paid, together with any applicable interest.

If you're wondering whether you could receive a MotoNovo refund or make a PCP compensation claim, the answer will depend on the outcome of the FCA's review process and the specific details of your agreement.

Because compensation calculations can vary considerably, we've created a dedicated guide explaining how the proposed methodology works, including the FCA's approach to commission arrangements, overcharging and different types of PCP finance claims -> Finance Refunds & Compensation for Overcharging & Discretionary Commission

If you're unsure whether your agreement could qualify, completing a car finance refund check is often the simplest place to start before deciding whether to pursue a MotoNovo finance claim.

Frequently Asked Questions

Can I still make a MotoNovo finance claim if I've finished paying for my car?

Yes. You may still be able to make a MotoNovo finance claim even if you've finished paying off your agreement, settled it early or no longer own the vehicle. The FCA's proposed scheme focuses on how the finance was arranged, rather than whether the agreement is still active. If your agreement was for personal use and entered into between 6 April 2007 and 1 November 2024, it may still be eligible for review.

Can I file a PCP claim against MotoNovo Finance?

Potentially, yes. PCP claims form a significant part of the FCA's proposed redress scheme, alongside eligible Hire Purchase agreements. If you had PCP car finance with MotoNovo and believe important information wasn't clearly explained when you took out the agreement, it may be worth reviewing whether you're eligible.

Is MotoNovo Finance refunding customers?

Not automatically. If you're asking "Is MotoNovo Finance refunding?", the answer is that MotoNovo, like other affected lenders, is awaiting the final implementation of the FCA's proposed scheme. If your agreement is found to meet the eligibility criteria once the process is in place, you could receive MotoNovo finance compensation. However, not every customer will qualify for a MotoNovo refund.

Can I make a claim if I no longer have my paperwork?

Yes. Many motorists no longer have their original finance documents, but that doesn't necessarily prevent them from exploring a car finance claim. A car finance refund check or PCP claim check can often begin using basic details such as your name, previous addresses and an approximate date when the agreement was taken out.

Do I have to use a finance claims expert?

No. You can complain directly to MotoNovo Finance free of charge if you wish. Some consumers choose to use a regulated finance claims expert for help with the process or to save time, but using one is entirely optional and doesn't increase your eligibility for compensation.

How long does a PCP claim take?

There is currently no fixed timeframe. If you're wondering how long does a PCP claim take, the answer depends on the progress of the FCA's proposed redress scheme, the outcome of the ongoing legal challenges and the complexity of your individual agreement. As things stand, many decisions and payments are now expected to take place during 2027, subject to the Tribunal proceedings.

When is the PCP payout expected?

Many consumers are asking "When is the PCP payout?" While no firm dates have been confirmed, widespread PCP refund and car finance compensation payments are now expected to begin during 2027, making the chances of payouts 2026 slim, assuming the FCA's proposed scheme proceeds following the conclusion of the legal challenges.

How long do car finance claims take to pay out?

There is no universal response to how long does car finance claims take to pay out. Once the FCA has issued its final timetable for execution, some deals will be processed quicker than others. The length of time it will take to get payment will depend on the facts of each case and the number of agreements under consideration.

What agreements are included?  

Agreements included will typically be eligible PCP car claims and Hire Purchase agreements that have been arranged by a dealer for personal use and which were entered into from 6 April 2007 and 1 November 2024. However, whether a particular agreement will be included will depend on the FCA's final inclusion criteria and the result of the review.

Final Thoughts

The investigation into historic MotoNovo Finance agreements continues to evolve, and the position today is very different from when this guide was first published. Although legal challenges have delayed the FCA's proposed redress scheme, the wider review of mis-sold car finance remains ongoing, and millions of historic agreements are still expected to be assessed if the scheme proceeds.

If you're considering a MotoNovo finance claim, staying informed is the best first step. We will keep this guide updated with the latest information on how the proposed scheme is progressing. This includes any further updates to the legal proceedings, the FCA's timescale for implementation and how quickly car finance compensation payments are expected to be made. In the meantime, this will help you understand how the proposed scheme is expected to work, whether your agreement could potentially be caught by it, and what the latest regulatory developments mean in terms of your next steps.

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References:

1. Consumer group Consumer Voice, together with lenders including Volkswagen Financial Services, Mercedes-Benz Financial Services and Crédit Agricole Auto Finance, has challenged aspects of the FCA's methodology through the Upper Tribunal - https://consumervoice.uk/cars/fca-car-finance-compensation-challenge/
2. the Tribunal has granted a partial suspension of parts of the scheme - https://www.fca.org.uk/news/statements/motor-finance-scheme-partially-suspended
3. the FCA worked with other regulators to tackle misleading promotions that overstated the likelihood or speed of compensation - https://www.thesun.co.uk/money/39776013/regulator-launches-car-finance-crackdown/
4. The FCA estimates that around 12.1 million finance agreements entered into between 6 April 2007 and 1 November 2024 could fall within the scope of the redress scheme, with around £7.5 billion expected to be paid to eligible consumers if it proceeds as proposed - https://www.fca.org.uk/publication/policy/ps26-3.pdf
5. Earlier in 2026, the FCA announced a proposed industry-wide redress scheme - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
6. The FCA has estimated that eligible consumers could receive an average of around £829 per agreement across the proposed scheme - https://www.bbc.com/news/live/czx94evl5lrt