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MotoNovo Finance and the FCA Motor Finance Investigation
MotoNovo Finance, one of the UK's largest independent motor finance providers, is among the lenders affected by the Financial Conduct Authority's (FCA) investigation into
discretionary commission arrangements (DCAs). The investigation spans from 6 April 2007 to 1 November 2024 and has implications for millions of car finance agreements across the country.
## Who is MotoNovo Finance?
MotoNovo Finance, part of South Africa's FirstRand Group, provides financing solutions primarily through independent dealerships. The company offers a wide range of financial products tailored to various vehicle types, including cars, motorcycles, and commercial vehicles. Unlike some other major lenders who operate direct-to-consumer models, MotoNovo Finance relies heavily on its network of approved dealers to facilitate car finance agreements.
## How Did MotoNovo Finance Use Discretionary Commission Arrangements?
Discretionary commission arrangements (DCAs) are payment schemes where lenders pay commissions to intermediaries based on the interest rates set in finance agreements. In the context of MotoNovo Finance, this meant that dealers could influence the terms offered to customers by setting higher interest rates, which would result in larger commissions for themselves.
From 6 April 2007 to 1 November 2024, MotoNovo Finance was involved in DCAs with its network of independent dealers. This period is crucial because it coincides with when the FCA identified potential unfairness in these arrangements. During this timeframe, customers who obtained car finance through MotoNovo might have been affected by these practices.
## How Many MotoNovo Finance Customers Are Affected?
The FCA's investigation into DCAs covers an estimated 12.1 million eligible agreements (FCA, March 2026) across all lenders (FCA estimate). Of these, MotoNovo Finance is responsible for a significant portion given its market position. While the exact number of affected customers at MotoNovo Finance is not publicly disclosed, it falls within the larger context of industry figures. The total value of agreements involved in DCAs is estimated to be around £7.5 billion (FCA estimate), with an average compensation per claimant of approximately £829 (FCA estimate).
## How to Information about agreements covered by the FCA schemeovo Finance falls within the scope of the FCA investigation, consider these key factors:
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Agreement Type: Ensure that you obtained your financing through a dealer using MotoNovo Finance's services.
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Date Range: Your loan must have been arranged between 6 April 2007 and 1 November 2024 to be eligible for review under the FCA investigation.
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Discretionary Commission Arrangement (DCA): Confirm that your agreement was part of a DCA, which would typically involve interest rates being set by dealers rather than lenders.
To Information about agreements covered by the scheme. This information can usually be found in the loan documents provided at the time of signing or through your account management portal on MotoNovo Finance's website.
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How to Complain to MotoNovo Finance Directly for Free
If you believe your agreement was part of an unfair DCA, you have the right to
complain directly to MotoNovo Finance. This process is free and does not require a
claims management company. Here’s how to proceed:
1.
Contact Information: Reach out to MotoNovo Finance via phone or email using their official complaint contact details.
2.
Gather Documentation: Have your agreement number and any relevant documents ready, such as loan agreements or correspondence with dealers.
3.
Detailed Explanation: Provide a clear explanation of why you believe your car finance agreement was affected by unfair DCA practices.
4.
Response Timeline: MotoNovo Finance is required to respond to your complaint within eight weeks.
Remember: "You can complain to MotoNovo Finance directly for free - you do not need a claims management company."
## What Compensation Could MotoNovo Finance Customers Receive?
The FCA has estimated that affected customers could be covered by the FCA redress scheme. averaging around £829 (FCA estimate). However, the exact amount of compensation will depend on various factors such as the type and duration of your agreement, interest rates set by dealers, and any additional fees or charges you may have incurred.
## Escalating a MotoNovo Finance Complaint to the
Financial Ombudsman
If your complaint to MotoNovo Finance is not resolved within eight weeks, or if you disagree with their decision, you can escalate it to the Financial Ombudsman Service (
FOS). The FOS offers an independent review of complaints free of charge.
To escalate a complaint:
1.
Submit Your Case: Provide all relevant documentation and evidence supporting your case.
2.
Response Timeline: The FOS will respond within eight weeks, though in some cases, this may extend to longer periods for more complex issues.
3.
Decision Making: The Ombudsman will review the case impartially and issue a binding decision.
## MotoNovo Finance and the FCA Redress Scheme
MotoNovo Finance has publicly acknowledged its involvement in the FCA's investigation into DCAs. While specific details of any redress scheme provisions set aside by the lender are not yet available, customers affected by unfair DCA practices should be aware that the company is part of ongoing discussions with regulatory authorities.
The timeline for compensation disbursement and other redress measures remains fluid as MotoNovo Finance continues to collaborate with relevant bodies. Customers are advised to stay informed through official channels for updates on progress in this area.
## Sources and References
- Financial Conduct Authority (FCA). "Discretionary Commission Arrangements Investigation." 2024.
- FirstRand Group Annual Report, South Africa. 2023.
- ONS Census 2021.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.