MotoNovo Finance is one of the leading providers of used car finance in the UK, offering loans for cars, vans, and motorbikes. As part of FirstRand Bank, MotoNovo has been a significant player in the motor finance industry since its establishment. However, recent investigations by the Financial Conduct Authority (FCA) have uncovered issues with discretionary commission arrangements that may have affected millions of customers across various lenders.
Latest: The FCA has confirmed the car finance compensation scheme on 30 March 2026. 12.1 million agreements are eligible, with an FCA-estimated scheme average of £829 per eligible agreement. Read the full details.
Who is MotoNovo Finance?
MotoNovo Finance operates under the parent company FirstRand Bank and specializes in financing used vehicles for both personal and business use. The lender provides a range of flexible finance options tailored to meet the needs of consumers looking to purchase cars, vans, or motorbikes without having to pay full price upfront.
What Happened
The FCA investigation into discretionary commission arrangements revealed that some financial institutions had been engaging in practices that potentially misled customers about the true cost and nature of their motor finance agreements. This practice is known as mis-selling, where lenders may have added hidden fees or charged interest rates higher than what was initially disclosed to borrowers.
MotoNovo Finance has a specific reference number (312):46 with the FCA regarding this investigation. The parent company's oversight and involvement highlight the scale of such practices across the industry during the period from 6 April 2007 to 1 November 2024, as identified by the regulatory body.
How Many People Are Affected
According to estimates provided by the FCA, 12.1 million eligible agreements (FCA, March 2026) may have been affected by these mis-selling practices. The total estimated redress for all customers across various lenders is approximately £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement.
If you believe that your finance agreement with MotoNovo Finance might have been affected by these practices, it’s important to start the complaint process directly through their official channels. You can contact MotoNovo Finance at:
You can complain to MotoNovo Finance directly for free at the link provided - you do not need a claims management company. This allows you to handle your complaint in a straightforward manner without any intermediary fees or complexities.
What to Do Next
Before lodging a formal complaint with MotoNovo Finance, gather all relevant documentation related to your finance agreement, such as loan agreements, payment receipts, and correspondence from the lender. Ensure that your agreement falls within the specified period of 6 April 2007 to 1 November 2024.
Once you have compiled the necessary information, submit a detailed complaint outlining any discrepancies or issues with your finance arrangement. Be thorough in describing how these practices may have impacted you financially and emotionally.
Timeline
After submitting your complaint, MotoNovo Finance is required to respond within eight weeks (two months). If you do not receive a satisfactory response during this period, you can escalate the matter to the Financial Ombudsman Service (FOS) for further review. The FOS provides an impartial and free service for resolving disputes between consumers and financial services providers.
By following these steps, you can address any concerns directly with MotoNovo Finance without involving additional third-party companies or solicitors. This approach ensures that your complaint is handled efficiently and transparently within the regulatory framework established by the FCA.
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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.