MotoNovo Finance Claim

No Win, No Fee Claims

MotoNovo Finance is under scrutiny for potentially mis-selling car finance agreements to consumers. The motor finance sector is currently the subject of a far-reaching investigation by the Financial Conduct Authority, initially sparked by a few consumer complaints over their car finance agreements.

The most common type of car finance agreement on new car purchases in the UK is a Personal Contract Purchase (PCP) loan; an estimated 80% of new car purchases in the UK use this form of financing.

If you’re a UK resident and took out a Personal Contract Purchase (PCP) car finance agreement before 28 January 2021 to buy a new or used car, then you might be able to make a car PCP claim for compensation if the car dealer didn’t tell you about hidden commissions on your PCP deal. If the interest rate charged was higher, then they received more commission. You could have paid a higher rate of interest as a result and may be owed compensation.

Let us put you in touch with the UK’s leading PCP compensation claims representatives to help you apply for compensation on your finance agreement. It’s on a strict no win no fee basis, so you won’t pay a penny unless you receive compensation, and it’s free to check!

What Is The Basis Of MotoNovo Car Finance Claims?

The mis-sold car finance scandal involves car finance providers imposing a higher interest rate charge on a car finance agreement in return for giving car dealers an enhanced commission payment for the sale. These arrangements are described as discretionary commission arrangements or DCAs. If you have a DCA in place on your car finance agreement and didn’t know anything about it, then you may be owed compensation.

MotoNovo Finance is just one of the third-party specialist motor finance providers under investigation, along with in-house finance offered by individual motor manufacturers. Other companies include Close Brothers and Black Horse Finance, part of the Lloyds Banking Group.

The FCA has now banned DCAs on all new car finance agreements, but this practice has a long history in the motor industry. Consequently, the mis-sold car finance picture is growing and developing constantly, and many industry commentators expect it to be as widespread as the PPI mis-selling scandal of several years ago.

In October 2024, the Court of Appeal upheld an appeal in three consumer cases brought against different finance providers, one of which was MotoNovo. The Court of Appeal ruling states that a broker cannot lawfully receive a commission from a lender without first obtaining the customer’s fully informed consent.

The court ruled that in order for consent to be demonstrated, the consumer would need to be told all material facts that might affect their decision, including the amount of the commission and how it was to be calculated.

Next Steps For Making A MotoNovo Finance Claim

To determine whether you are eligible for a refund or compensation, you must have a qualifying agreement taken out before 28 January 2021. It doesn’t have to be PCP; the FCA investigation also extends to hire purchase (HP).

It can be easier to pass your MotoNovo finance claim to a specialist claims management company, which will verify your eligibility, make a complaint, and start the compensation process on your behalf.

The FCA has extended the deadline for finance companies to respond to December 2025, whilst their review is ongoing. Consumers unhappy with their finance providers’ response on their PCP agreements can then take their claim to the Financial Ombudsman Service (FOS).

Why Choose PCP Claims UK?

We will put you in touch with the UK’s top PCP claims solicitors to help you recover compensation for higher interest rates and inflated monthly repayments from dealers and brokers who didn’t give you all the facts at the start of the agreement. It’s strictly no win, no fee, and it’s completely free to check.

Claim £1000s – Receive compensation for your mis-sold PCP finance agreement.
Work with the pros – We team you up with the UK’s leading PCP claim solicitors.
No win, no fee – Our no win no fee basis means no financial risk to you.
60 second form – Fill in our form to find out if you have a claim.
Zero risk – We only share your data with solicitors if you qualify.

MotoNovo Finance Claims FAQs

Our most common PCP claim questions about BMW are answered for you below.

Do I Need To Have A Current PCP Agreement To Make A Claim?

No, the agreement may be historic, and it doesn't matter if you no longer have the vehicle.

How Much Money Could I Be Entitled To?

Part of the FCA's remit on mis-sold car finance is devising a fair and consistent compensation system for PCP customers. Industry commentators speculate that the average payout will be £1,100. However, some awards could be higher if the interest rate on the loan was seriously inflated or if you have multiple car finance agreements.

After The Recent Decision In The Court Of Appeal, MotoNovo Have Stopped Taking New Finance Proposals. How Does This Affect My Current Finance Agreement?

If you already have a PCP or other finance agreement with MotoNovo, this will be unaffected. If your agreement was subject to a DCA, you can still start a claim if you believe you were mis-sold a loan and are owed compensation.

Is It Too Late To Lodge A Complaint Against Motor Finance Lenders?

No, but you should register your claim without delay. Finance providers are not obliged to respond to customers other than acknowledging their complaints and confirming whether or not there was a DCA on the agreement.

Is There A Time Limit To Bring A Claim?

Usually, the time limit is three years from when you became aware of the mis-selling, but it is likely that the FCA will put their own timeline on claims as part of their redress scheme, with a final cut-off date, just as with PPI.