Motonovo Car Finance Claims
Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.
Check if you’re owed compensation – Updated April 2026
MotoNovo Finance is at the centre of the UK’s biggest motor finance compensation scandal. The Supreme Court case that led to the FCA’s confirmed nationwide redress scheme was named Johnson v FirstRand Bank t/a MotoNovo Finance. If you financed a vehicle through MotoNovo on PCP or Hire Purchase before November 2024, you may be owed compensation averaging £829.
In this guide
- Why MotoNovo Is Central to the Car Finance Scandal
- What Is a MotoNovo Car Finance Claim?
- Three Types of Commission That May Have Affected Your Agreement
- Are You Eligible to Make a MotoNovo Claim?
- How Much Could a MotoNovo Claim Be Worth?
- What Happened in the Johnson v MotoNovo Supreme Court Case?
- FCA Redress Scheme — Key Dates for MotoNovo CustomersJanuary 2021 — DCAs banned
- Why You Should Complain to MotoNovo Now — Not Wait
- PCP vs HP — Which Agreement Type Is Covered?
- How Claims Bible Helps With MotoNovo Claims
- Frequently Asked Questions
- Our Partner's Fees Explained
- Think You May Have a Motor Finance Claim?
FCA Redress Scheme Confirmed 30 March 2026 • Average Payout: £829 • Deadline: 31 August 2027
Why MotoNovo Is Central to the Car Finance Scandal
MotoNovo Finance is not just one of many lenders caught up in the UK car finance mis-selling scandal — it is the lender at the heart of it.
The landmark legal case that paved the way for the FCA’s nationwide compensation scheme was Johnson v FirstRand Bank Limited (London Branch) trading as MotoNovo Finance. This case went all the way to the UK Supreme Court, which handed down its judgment on 1 August 2025.
In that case, the Supreme Court found that a customer’s relationship with MotoNovo’s parent company, FirstRand Bank, was unfair under Section 140A of the Consumer Credit Act 1974. The commission paid to the dealer was significant — amounting to 55% of the total charge for credit — and was not disclosed to the customer. The Supreme Court ruled this made the agreement unfair and ordered the lender to repay the commission with interest. Close Brothers was the co-defendant in the Supreme Court case alongside MotoNovo
That ruling opened the door for the FCA to confirm, on 30 March 2026, a nationwide scheme covering approximately 12.1 million motor finance agreements. MotoNovo customers are firmly within scope.
MotoNovo Finance is the UK motor finance arm of FirstRand Bank, a South African banking group, and has been operating in the UK since 2006. It holds approximately 10% of the UK motor finance market. FirstRand has set aside over £166 million to cover potential redress costs in the UK.
What Is a MotoNovo Car Finance Claim?
A MotoNovo car finance claim is a compensation claim for being mis-sold a finance agreement. This typically applies where:
- The dealer received a commission from MotoNovo that was not properly disclosed to you
- The interest rate on your agreement was inflated to increase the dealer’s commission
- The terms and costs of your agreement were not clearly explained
- You were not made aware of the commercial relationship between MotoNovo and the dealer
The most common issue involved Discretionary Commission Arrangements (DCAs). Under this model, MotoNovo allowed dealers to increase the interest rate on your loan — meaning you paid more, and the dealer earned more commission. You were almost certainly never told this was happening.
DCAs were banned by the FCA in January 2021. However, agreements signed before that date — going back as far as April 2007 — are now eligible for compensation under the confirmed redress scheme.
For more information on car finance claims, see our ultimate guide.
Three Types of Commission That May Have Affected Your Agreement
The FCA scheme covers three types of commission arrangement. Your agreement only needs to have included one of these to potentially be eligible.
1. Discretionary Commission Arrangements (DCAs)
MotoNovo allowed dealers to set or adjust the interest rate on your agreement. A higher rate earned the dealer more commission. You were not told. Banned January 2021. Affects approximately 11.4 million agreements across the industry.
2. Unfairly High Commission
Even where a fixed commission was used, if it amounted to at least 39% of the total cost of credit and 10% of the loan amount, it may have been unfairly high. The Supreme Court case against MotoNovo was partly decided on this basis — the commission paid was 55% of the total charge for credit. Affects approximately 2.9 million agreements.
3. Contractual Ties
If MotoNovo had an exclusive or near-exclusive arrangement with certain dealerships, limiting which lenders they could offer you, this may also give grounds for a claim. Affects approximately 3.2 million agreements.
Are You Eligible to Make a MotoNovo Claim?
Use the table below to check whether your situation is likely to be covered.
| Your situation | Likely eligible? |
|---|---|
| Financed a car, van, motorbike or campervan through MotoNovo on PCP or HP between 6 April 2007 and 1 November 2024 | YES |
| Personal use or sole trader (loan under £25,000) | YES |
| No longer own the vehicle | YES |
| Finance agreement already ended or paid off | YES |
| Settled the agreement early | YES |
| No longer have original paperwork | YES — agreements can be traced |
| MotoNovo previously rejected your complaint | YES — re-submit under expanded FCA criteria |
| Agreement started after 1 November 2024 | NOT ELIGIBLE |
| Personal Contract Hire / leasing arrangement | NOT ELIGIBLE |
| 0% interest finance deal | UNLIKELY — check with us |
| Already received compensation for this agreement | NOT ELIGIBLE |
| Finance taken out by a limited company | NOT ELIGIBLE under FCA scheme* |
Important: If MotoNovo previously rejected your complaint, it is worth re-submitting. The FCA scheme now covers three types of commission mis-selling. Many early complaints were only assessed against the DCA criteria and should now be reviewed against the expanded scope — including unfairly high commission and contractual ties.
How Much Could a MotoNovo Claim Be Worth?
The FCA estimates the average payout across the scheme is £829 per agreement. Your individual payout will depend on:
- The original loan amount
- The interest rate you were charged
- The size of the undisclosed commission
- The length of your agreement
- Whether your agreement falls in the 2007–2014 tranche (21% loss rate) or the 2014–2024 tranche (17% loss rate)
In the most serious cases — like the Johnson v MotoNovo/FirstRand case itself, where commission was 55% of the total charge for credit — customers may receive a full refund of the commission plus interest. In around one in three cases, compensation will be capped to ensure you are not put in a better position than if the deal had been fair.
Interest is added on top of any compensation at the Bank of England base rate plus 1%, with a minimum of 3% per year — from the date you overpaid to the date you are compensated.
If you had more than one MotoNovo finance agreement, each eligible agreement is a separate claim.
What Happened in the Johnson v MotoNovo Supreme Court Case?
The legal case that defined this entire scandal began with a single customer — Mr Johnson — and his MotoNovo finance agreement.
In 2024, the Court of Appeal ruled in Mr Johnson’s favour, finding that the commission MotoNovo’s dealer had received was unlawful because it had not been properly disclosed. MotoNovo’s parent company, FirstRand Bank, appealed to the Supreme Court.
On 1 August 2025, the Supreme Court handed down its judgment. While it narrowed the legal basis for some claims — ruling that dealers do not owe customers a strict fiduciary duty — it upheld Mr Johnson’s specific claim. The Court found that his relationship with FirstRand Bank (trading as MotoNovo) was unfair under Section 140A of the Consumer Credit Act 1974. The reasons were the sheer size of the commission (55% of the total charge for credit) combined with the failure to disclose it.
This ruling was enough for the FCA to proceed with the nationwide scheme. The judgment in Johnson v FirstRand Bank/MotoNovo directly set the legal foundation for the compensation that millions of customers are now entitled to claim.
Key fact: The Supreme Court case is officially named Johnson v FirstRand Bank Limited (London Branch) t/a MotoNovo Finance [2025] UKSC 33. This is the single most important motor finance legal case in UK history, and MotoNovo is the defendant.
FCA Redress Scheme — Key Dates for MotoNovo CustomersJanuary 2021 — DCAs banned
The FCA banned discretionary commission arrangements across all motor finance, including MotoNovo agreements.
October 2024 — Court of Appeal ruling in Johnson v MotoNovo/FirstRand
The Court of Appeal ruled in Mr Johnson’s favour, finding undisclosed commissions unlawful. FirstRand/MotoNovo appealed.
1 August 2025 — Supreme Court judgment — Johnson v FirstRand t/a MotoNovo Finance
The Supreme Court upheld Mr Johnson’s unfair relationship claim against MotoNovo’s parent company, opening the door for the nationwide FCA redress scheme.
30 March 2026 — FCA confirms redress scheme
The FCA formally confirmed the nationwide motor finance compensation scheme covering 2007–2024 agreements. MotoNovo customers are firmly in scope.
31 May 2026 — Complaints pause ends
MotoNovo currently does not have to respond to outstanding complaints. From 31 May 2026, the pause lifts.
30 June 2026 — Scheme opens — post-April 2014 agreements
MotoNovo was required under the original timetable to contact complainants within three months, with responses by 30 September 2026. That timetable is suspended and no longer applies as stated.
31 August 2026 — Scheme opens — pre-April 2014 agreements
Second tranche covers MotoNovo agreements from 6 April 2007 to 31 March 2014.
30 December 2026 — MotoNovo must contact eligible non-complainants (post-2014)
If you have not complained but may be eligible, MotoNovo must try to contact you by this date.
28 February 2027 — MotoNovo must contact eligible non-complainants (pre-2014)
Same obligation applies to earlier agreements.
31 August 2027 — Final complaint deadline
Last opportunity to submit a complaint and be included in the scheme.
Why You Should Complain to MotoNovo Now — Not Wait
Under the original timetable, customers who complained before the scheme’s implementation dates were in the priority group, with a response due within three months of the scheme opening. Those dates are suspended and no response or payment is currently required from lenders under the scheme.
Customers who wait to be contacted by MotoNovo face a longer process. MotoNovo has six months from the scheme opening to reach out to non-complainants — and they may struggle to find you if you have moved address or changed your name.
Complaining now also means:
- Your current contact details are on record with the lender
- You are placed in the faster compensation track
- You protect your position if MotoNovo appeals any aspect of the scheme
- You avoid the risk of missing the 31 August 2027 deadline entirely
Claims Bible can trace your MotoNovo agreements and submit a complaint on your behalf — even if you no longer have your paperwork.
PCP vs HP — Which Agreement Type Is Covered?
Both PCP and HP agreements with MotoNovo are included in the FCA redress scheme.
Personal Contract Purchase (PCP)
PCP agreements involve lower monthly payments with a larger optional balloon payment at the end. MotoNovo was a major PCP provider. If your PCP agreement involved undisclosed commission, you may be eligible to claim.
Hire Purchase (HP)
HP agreements involve fixed monthly payments with no balloon payment, and ownership transfers to you once the final payment is made. If your MotoNovo HP agreement included a hidden commission that inflated your interest rate, you may be able to claim compensation.
What is NOT covered: Personal Contract Hire (PCH) or leasing agreements are not included in the FCA redress scheme.
How Claims Bible Helps With MotoNovo Claims
Claims Bible works with specialist legal partners experienced in motor finance mis-selling claims on a no win, no fee basis.
Step 1 — Trace your agreements
We locate all historic MotoNovo PCP and HP agreements in your name — going back to 2007 — usually in under two minutes. No paperwork needed.
Step 2 — Assess your eligibility
Our legal partners review each agreement to identify whether commission arrangements were properly disclosed and whether a claim is likely to succeed under the FCA scheme criteria.
Step 3 — Submit your complaint to MotoNovo
A formal complaint is prepared and submitted to MotoNovo on your behalf. Your legal partner handles all correspondence and negotiations.
Step 4 — Receive your outcome
MotoNovo must respond within the scheme timelines. If they reject your complaint or you are unhappy with the outcome, your case can be escalated to the Financial Ombudsman Service (FOS) for free.
You don’t need paperwork to start a car finance claim—modern tools can identify agreements using just basic details like your name, lender, and vehicle history. If you’ve had PCP or HP finance, you could still be owed compensation even if you’ve lost your documents, as claims are often based on mis-selling or hidden commissions rather than paperwork alone.
👉 Check how to start a claim without documents: Car finance claim without paperwork
Frequently Asked Questions
Why is MotoNovo particularly important in the car finance scandal?
MotoNovo is the lender named in the Supreme Court case — Johnson v FirstRand Bank t/a MotoNovo Finance — that directly led to the FCA’s confirmed compensation scheme. The case established that a customer’s relationship with MotoNovo’s parent company was unfair due to a large undisclosed commission (55% of the total charge for credit). This ruling is the legal foundation for the entire redress scheme.
MotoNovo already rejected my previous complaint. Can I still claim?
Yes. Many complaints submitted before 2025 were only assessed against the DCA criteria. The FCA scheme now covers three types of commission mis-selling — including unfairly high commission and contractual ties. A previous rejection does not prevent you from making a new complaint or being included in the redress scheme.
How much could I receive from a MotoNovo claim?
The FCA estimates the average payout is £829 per agreement. Your specific amount will depend on your loan size, the interest rate charged, the commission paid, and the length of your agreement. In cases involving large undisclosed commissions — similar to the Johnson case where commission was 55% of the total charge for credit — the payout could be significantly higher.
I don’t have my MotoNovo paperwork. Can I still claim?
Yes. Claims Bible can trace your MotoNovo agreements using a credit reference check, going back as far as 2007. Lenders are required to hold records of agreements and cooperate with the redress scheme.
What if my MotoNovo finance has already been paid off?
You can still claim. Eligibility is based on the original agreement terms, not whether the loan is still active. Even if you paid off your MotoNovo finance years ago, you may still be owed compensation for the hidden commission you paid at the time.
What is the deadline to make a MotoNovo claim?
The deadline to submit a complaint to MotoNovo is 31 August 2027. Under the original timetable, complaining before 30 June 2026 (for post-2014 agreements) or 31 August 2026 (for pre-2014 agreements) placed you in the priority group under the original timetable. Those dates are suspended, but a complaint made now is still logged and queued if the scheme resumes.
Can I claim for a van or motorbike financed through MotoNovo?
Yes. The FCA scheme covers cars, vans, motorbikes and campervans. If you financed any motor vehicle through MotoNovo on PCP or HP between April 2007 and November 2024, you may be eligible.
Do I need to use a claims management company?
No. You can complain directly to MotoNovo for free using a template letter from the FCA or MoneySavingExpert. However, if you want help tracing old agreements, assessing eligibility across multiple agreements, handling all correspondence and escalating to the FOS if needed, Claims Bible’s legal partners can manage the entire process on a no win, no fee basis.
Think You May Have a Motor Finance Claim?
The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.
