Nova Car Finance Claim — PCP & HP Compensation 2026
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.
If you financed a vehicle through Nova Finance between April 2007 and November 2024, you may be entitled to compensation under the FCA confirmed motor finance redress scheme (PS26/3, 30 March 2026). Nova Finance is a specialist motor finance provider operating in the non-prime market, and its agreements during the eligible period are within the scope of the scheme.
Who Is Nova Finance?
Nova Finance Ltd is an FCA-authorised specialist motor finance provider offering HP and PCP agreements primarily to customers who may not qualify for mainstream lending. The company operates through independent dealer and broker networks, serving the non-prime and near-prime credit segments. As with other specialist lenders in this market, Nova Finance agreements were arranged in an environment where commission structures were often undisclosed and interest rates were set to maximise commission income.
Is Nova Finance Covered by the FCA Scheme?
Yes. All FCA-regulated HP and PCP agreements arranged through Nova Finance between 6 April 2007 and 1 November 2024 fall within PS26/3. The complaint deadline is 31 August 2027.
Three Grounds for a Nova Finance Claim
1. Discretionary Commission Arrangements
Nova Finance operated through dealer and broker networks where DCAs were common prior to the FCA ban on 28 January 2021. Dealers could set interest rates within a lender-defined range, earning more commission the higher the rate. For non-prime customers with limited alternatives, rates were routinely maximised. Where this was undisclosed, you are eligible for compensation.
2. Non-Prime Market Vulnerability
The FCA review identified the non-prime segment as a particular area of concern because customers had fewer borrowing options and less negotiating power. Nova Finance agreements, which typically carried higher interest rates than mainstream lending, represent a priority area for claims where the absolute overpayment impact of commission-driven rate inflation was greatest.
3. Unfairly High Fixed Commission
Post-January 2021 agreements may qualify where the fixed commission met the FCA threshold of 39% of total cost of credit and 10% of loan amount.
How Much Could You Receive?
The FCA confirmed national average is £829. Non-prime agreements with higher interest rates often produce above-average payouts under the hybrid remedy. Your compensation is calculated by averaging your estimated interest overpayment (17% APR reduction for post-April 2014, 21% for pre-April 2014) and the commission paid, plus compensatory interest at Bank of England base rate plus 1% per year.
Scheme Timetable
Post-April 2014 agreements: Complain before 30 June 2026 → response by 30 September 2026 → payment by November 2026
Pre-April 2014 agreements: Complain before 31 August 2026 → decision by 30 November 2026 → payment by January 2027
Final complaint deadline: 31 August 2027
How to Complain to Nova Finance
Submit your complaint in writing to Nova Finance Ltd using the contact details on your original agreement or via their website. Reference PS26/3. Include your full name, date of birth, address at time of agreement, vehicle details and a statement about undisclosed commission arrangements.
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Frequently Asked Questions
I had bad credit when I took out my Nova Finance agreement. Am I still eligible?
Yes. Your credit profile does not affect eligibility under the FCA scheme. The claim concerns the commission structure and disclosure, not your personal financial circumstances at the time.
Nova Finance does not appear on my credit report. Can I still find my agreement?
You can submit a Subject Access Request to Nova Finance Ltd requesting all data they hold on you. This will retrieve agreement details even if the entry has dropped off your credit report.
I have settled my Nova Finance agreement. Can I still claim?
Yes. Settlement of the agreement does not affect your eligibility. The claim relates to the commission arrangement at the start of the agreement.
Claiming After Early Settlement
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.
