MotoNovo Finance Claim

Latest FCA Update

Legal Hearing Set for February 2027

If you've submitted a MotoNovo Finance claim, ongoing legal challenges to the FCA's motor finance compensation scheme could delay your decision or payout. The Upper Tribunal is due to hear these challenges between 16 February and 3 March 2027, with a ruling expected in the following months. Although parts of the scheme remain suspended, MotoNovo Finance must continue reviewing relevant agreements, collecting evidence and progressing complaints where possible. Some customers may receive confirmation that they aren't entitled to compensation. Payments for successful claims aren't expected to begin until later in 2027 at the earliest, depending on the outcome of the legal proceedings.

13 OCTOBER 2026

Why Are MotoNovo Finance Claims Being Made?

MotoNovo Finance has provided vehicle finance to UK motorists for many years, helping customers buy new and used vehicles through arrangements such as Personal Contract Purchase (PCP) and Hire Purchase (HP). However, some agreements may have been mis-sold if they involved a commission arrangement that was not adequately disclosed or was too excessive. The Financial Conduct Authority (FCA) has introduced a motor finance redress scheme to address potentially unfair agreements.

A MotoNovo Finance agreement may have been mis-sold if it involved:

Discretionary commission arrangements (DCAs): The broker could influence the interest rate the customer paid in a way that increased the commission they received. DCAs were banned on 28 January 2021.
High commission arrangements: Where the amount of commission paid was at least 39% of the total cost of credit and 10% of the loan.
Tied arrangements: Where the relationship between the lender and broker could have influenced which finance provider was offered to the customer.

Not every MotoNovo Finance agreement involving dealer commission will qualify for compensation. Eligibility depends on the arrangement, what was disclosed when the customer took out the finance, and whether the agreement meets the FCA's unfairness criteria.

Motor Finance Redress Scheme at a Glance

12.1 Million Agreements suspected to be eligible for compensation.

£829 Average payout estimated per agreement.

75% Eligible consumers predicted to make a claim.

£7.5 Billion Total redress expected to be paid to consumers.

Could You Be Eligible for a MotoNovo Finance Claim?

If you purchased a vehicle through MotoNovo Finance, you may be entitled to compensation if your agreement included an unfair or inadequately disclosed commission arrangement. The FCA's scheme covers a defined period, but eligibility depends on more than simply having an agreement with MotoNovo.

Your MotoNovo Agreement May Be Covered If:

You took out motor finance with MotoNovo Finance between 6 April 2007 and 1 November 2024.
You financed a car, van, motorbike or campervan.
Your agreement was a type of regulated motor finance, including Personal Contract Purchase (PCP) or Hire Purchase (HP).
MotoNovo Finance paid commission to the dealer or broker that arranged your finance.
You were not given adequate information about the commission arrangement.

Your Agreement May Not Be Covered If:

You leased the vehicle, such as through a Personal Contract Hire (PCH) agreement.
MotoNovo Finance paid minimal or no commission to the dealer or broker.
You used the vehicle for business purposes, not personal use.

You can still pursue a MotoNovo Finance claim if you've already paid off the agreement. Your vehicle might have been sold, traded in or repossessed, but this does not automatically prevent you from seeking compensation. Customers who used MotoNovo Finance to purchase several vehicles could also have more than one eligible agreement. Where a customer has died, their personal representatives may also be able to pursue an eligible claim on behalf of the estate.

How Has MotoNovo Finance Responded?

MotoNovo Finance, part of the Aldermore Group, is owned by the South African bank FirstRand. Like other major motor finance providers in the United Kingdom, the business has had to assess its potential exposure to compensation payments due to the mis-selling scandal.

In its financial results for the year ending 30 June 2026, Aldermore Group reported a total provision of £231.8 million for motor finance redress and associated costs. Of this amount, £220.3 million was recognised on the MotoNovo Finance Limited balance sheet, with the remaining £11.5 million allocated to Aldermore Bank PLC. This provision is considerably higher than the £73.1 million reported in June 2025, reflecting an updated assessment of the potential financial impact of the FCA's compensation scheme.

This money is not a guaranteed compensation fund to be divided equally between MotoNovo customers. It represents an accounting estimate covering potential redress payments and the additional costs of administering the scheme. The eventual amount could change depending on how the legal proceedings and claims process develop.

How the MotoNovo Finance Claims Process Works

The FCA has launched a redress scheme intended to compensate customers affected by unfair motor finance agreements. MotoNovo Finance should contact potentially affected customers under the scheme’s requirements once the relevant communication obligations apply, even if they have not previously complained. However, you don’t have to rely solely on receiving a letter. If you believe your MotoNovo agreement was mis-sold, you can take action by submitting a complaint now.

Start by identifying any vehicles you financed through MotoNovo between April 2007 and November 2024. If you cannot find the paperwork or don’t remember the agreement number, our free online checker can help you search for past finance agreements. Once we find your details, you can start the claims process through our online system. We’ll ask for the relevant information and a signed letter of authority allowing us to communicate with MotoNovo Finance on your behalf. If your MotoNovo agreement qualifies for redress, the lender should calculate compensation under the scheme’s rules when required. Payouts under the scheme are expected to begin in 2027 at the earliest, provided the legal challenges do not cause further delays.

You can also complain directly to MotoNovo Finance for free, without using a solicitor or claims management company.

MotoNovo Finance Compensation: How Much Could You Get?

Around £829 Per Eligible Agreement

MotoNovo Finance won’t offer the same compensation for each customer. What you receive depends on the terms of your original agreement and the nature of any unfair commission arrangement. Under the FCA’s motor finance redress scheme, the regulator estimates that eligible consumers will receive an average of approximately £829 per agreement. Some customers could receive significantly less, while others may qualify for larger payments.

Several factors can influence your MotoNovo Finance compensation, including:

How much commission the dealer or broker was paid.
The type of commission arrangement involved.
The interest rate and overall cost of credit on your MotoNovo agreement.
When you entered into the finance agreement.

The FCA has introduced a method for assessing compensation that reflects both the commission paid and the customer's estimated financial loss. For most eligible agreements, compensation will be calculated using an average of the commission paid and the estimated overpayment, plus interest. In a smaller number of serious cases, customers may be entitled to a refund of the full commission amount, plus interest.

If you have two or more qualifying agreements, MotoNovo Finance will assess compensation separately for each one, meaning you could potentially receive multiple compensation payments.

MotoNovo Finance Payouts: When Could Customers Get Compensation?

Customers waiting for a MotoNovo Finance compensation payout face a longer timetable after legal challenges to the FCA's motor finance redress scheme. The Upper Tribunal is scheduled to hear these challenges between 16 February and 3 March 2027, with a judgment anticipated in the months that follow. Until the proceedings have concluded, MotoNovo and other affected lenders are not required to calculate or pay compensation under the suspended parts of the scheme.

Although compensation payments have been delayed, the claims process has not stopped completely. MotoNovo must continue complying with the scheme requirements that remain in force, such as preparing for the redress process, identifying relevant agreements, and progressing complaints wherever possible. Customers who have already complained may receive confirmation that their agreement does not qualify for compensation.

The FCA currently expects compensation payments to begin during 2027 if the redress scheme survives the legal challenges and the judgment is not appealed. The exact timing will depend on the Tribunal's decision, any subsequent appeals and whether changes to the redress scheme are required.

Check if you’re eligible, you may be owed compensation…

Launch Check

2 Minutes

Frequently Asked Questions

Submitting a MotoNovo Finance claim should not affect your credit score. Complaints do not appear on your credit report, and lenders cannot blacklist you for submitting a complaint. If you still have an active MotoNovo agreement, continue making your monthly payments as normal, even if you have an ongoing complaint.

Yes. You may still be eligible to make a MotoNovo Finance claim even if you’ve sold, traded in, or otherwise disposed of the vehicle. Eligibility is based on the original finance agreement and whether it involved an unfair commission arrangement, not whether you still own the vehicle. The same applies if you’ve settled your finance early or completed all your repayments.

You don’t necessarily need your MotoNovo Finance agreement number or paperwork to start a claim. If you’ve lost your documents, you can still provide key personal information to help the lender locate your agreement details. Our free agreement finder can also help you locate previous MotoNovo finance agreements, even if you arranged them several years ago.

Yes. Many motor finance agreements are arranged through car dealerships, which act as credit brokers when introducing customers to the lender. If the dealership received commission from MotoNovo that wasn’t adequately disclosed, or your agreement involved another unfair arrangement, you could qualify for compensation. You should still direct the complaint to MotoNovo Finance, even though you arranged the finance at a dealership.