Introduction
Thousands of drivers may be eligible to make a MotoNovo car finance claim.
If you bought your car using MotoNovo PCP or HP finance, your agreement may fall within scope. This could apply if commission or key finance terms were not explained clearly.
In this guide, we explain what a MotoNovo finance claim is, who qualifies, and how to start the process.
What Is a MotoNovo Finance Claim?
A MotoNovo finance claim is compensation for mis sold car finance. If MotoNovo failed to fully explain the terms of your PCP or HP agreement, or if you were not told about a commission, the deal may have been unfair.
Many customers were unaware of how much extra they were paying. Some were pushed into unsuitable finance packages with inflated interest rates.
Why Are People Making MotoNovo Claims?
The FCA has confirmed a motor finance redress scheme for some agreements where commission may not have been explained clearly.
This can include commission arrangements between the lender and broker, such as discretionary commission arrangements, high commission arrangements, and some contractual ties.
If you used MotoNovo finance for a car, motorbike, van or campervan between 6th April 2007 and 1st November 2024, your agreement may fall within scope. However, not every agreement will qualify, and some arrangements are excluded.
Signs You Were Mis Sold MotoNovo Car Finance
Not every finance deal was mis sold. But if any of the following apply, you may have grounds for a MotoNovo claim:
- You weren’t told about dealer commission.
- The interest rate seemed higher than expected.
- You felt pressured into signing the deal.
- The finance terms were unclear or confusing.
- You weren’t offered alternative finance options.
- Your financial situation wasn’t properly assessed.
If any of these sound familiar, it’s worth checking your agreement. You may be owed compensation if commission or key terms were not explained clearly.
What Types of Finance Are Affected?
MotoNovo offers several car finance options. The most commonly mis sold are:
- PCP (Personal Contract Purchase) – Often includes a balloon payment and optional ownership.
- HP (Hire Purchase) – Fixed monthly payments with ownership at the end.
The FCA says the scheme may apply to regulated motor finance used for a car, motorbike, van or campervan between 6th April 2007 and 1st November 2024. This includes hire purchase agreements such as PCP. If you used MotoNovo finance, it is worth checking your documents even if the agreement has already ended.
Discretionary Commission Arrangements (DCAs) in MotoNovo Agreements
Discretionary Commission Arrangements (DCAs) allowed a broker or dealer to adjust the interest rate on a finance deal. When the rate went up, commission could go up too. The FCA says these arrangements can fall within scope of the compensation scheme where customers were not given the right information.
If your MotoNovo agreement involved a DCA, or another commission arrangement that was not explained clearly, you may be able to make a claim.
Can I Still Claim if I’ve Paid Off My Finance?
Yes. A paid-off agreement can still qualify. The FCA says the scheme may apply to regulated motor finance agreements used between 6th April 2007 and 1st November 2024, including PCP and HP.
If you want your case assessed sooner, complain to the lender before the relevant scheme deadline. If you are not contacted by your lender, you can still complain by 31st August 2027.
How Much Compensation Could I Get?
Compensation varies by agreement. It should reflect any extra interest or loss linked to commission that was not explained properly. Across the wider scheme, the FCA estimates average payouts of about £830 per agreement, although a MotoNovo case could be worth more or less depending on the facts.
For a broader look at payout timing and the wider market position, read our latest car finance compensation update.
How to Start a MotoNovo Car Finance Claim
There are two main ways to start a MotoNovo car finance claim.
You can either complain directly to MotoNovo yourself or get support with the process. A good place to start is our short survey. It only takes a few minutes to find your lenders and helps you understand whether your agreement may fall within scope.
Can you complain to MotoNovo directly?
Yes. You can complain to MotoNovo directly for free. You do not need to use a claims management company.
MotoNovo says customers can make a commission complaint using its online complaint form. It says customers should select “Commission” from the dropdown menu.
If you had more than one MotoNovo agreement, MotoNovo says you should complete a separate form for each agreement. You do not need to know which commission arrangement applied before you complain. MotoNovo says it will check this for you.
Some drivers still prefer help because they no longer have their paperwork or cannot remember their agreement details.
When should you hear from MotoNovo?
Under the current FCA timetable, agreements that started between 1st April 2014 and 1st November 2024 fall under the 30th June 2026 start date.
Earlier agreements fall under the 31st August 2026 start date.
However, the FCA scheme now faces legal challenges. This means the final timetable may change.
If your complaint is already with MotoNovo, it should remain open. MotoNovo says it will contact customers as directed by the regulator.
What If My MotoNovo Claim Is Rejected?
If MotoNovo rejects your complaint, you may still be able to take it to the Financial Ombudsman Service (FOS). This is a free, independent service. If you receive a final response and you are unhappy with it, make sure you contact the Ombudsman by the date given in that response.
Start Your MotoNovo Finance Claim Today
If you think you were mis-sold by MotoNovo, now is a good time to check your agreement.
The FCA scheme could affect some MotoNovo PCP and HP agreements. However, the final timetable may depend on the legal challenges.
Check whether your agreement may fall within scope and start your MotoNovo finance claim today.
