Reclaim Car Finance Commission from MotoNovo Finance
MotoNovo (FirstRand Bank, London Branch) was one of the two lenders, alongside Close Brothers, that took the commission question all the way to the Supreme Court. In Johnson v FirstRand (1 August 2025) the court ruled that a hidden commission could make the lending relationship unfair. The FCA then confirmed its industry-wide redress scheme in March 2026. If you bought a car on finance through a dealer who used MotoNovo and were never told how much commission the dealer pocketed, you may be owed a refund plus interest. You send the complaint yourself, it costs nothing, and you keep 100% of whatever comes back.
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Your claim rests on section 140A of the Consumer Credit Act 1974, which lets a court reopen a credit agreement where the relationship between you and the lender was unfair. The Supreme Court accepted in Johnson v FirstRand that a large, undisclosed commission paid to the dealer can create exactly that unfairness. On top of this, the FCA confirmed its motor finance redress scheme in policy statement PS26/3 (30 March 2026). It covers agreements taken out between 6 April 2007 and 1 November 2024 where commission was not properly disclosed. The scheme captures three main situations: discretionary commission arrangements (DCAs) where the dealer could raise your interest rate to earn more, high commission (broadly at least 39% of the total charge for credit and 10% of the loan), and undisclosed ties where the dealer had to use, or favour, one lender. The scheme is free and you do not need a claims firm.
Step by step
- 1Dig out your agreement details: the MotoNovo agreement number, the registration of the car, and roughly when you signed. If you have lost the paperwork, MotoNovo can trace it from your name, date of birth and address.
- 2Submit a commission complaint using MotoNovo's online complaint form and select 'Commission' from the dropdown, or write to Commission Complaints, MotoNovo Finance, Two Central Square, Cardiff, CF10 1FS. State that you believe the commission was not properly disclosed and that this made the relationship unfair under section 140A of the Consumer Credit Act.
- 3If you have already complained, MotoNovo must review your case under the FCA scheme without you needing to contact them again. For agreements from April 2014 onwards firms must complete the implementation period by 30 June 2026, and for earlier ones by 31 August 2026, after which they have up to three months to tell you the outcome. If you have not complained, register a complaint so you are inside the scheme rather than waiting to be contacted.
- 4If MotoNovo rejects you or the offer looks low, refer it to the Financial Ombudsman Service for free. You normally have six months from the date of their final response to do this. The Ombudsman can look at the fairness of the relationship independently.
What they'll say, and your comeback
“The commission was disclosed in your paperwork, so there is nothing to refund.”
Comeback, A buried line in the small print is not the same as you giving informed consent. The Supreme Court in Johnson v FirstRand made clear that the size and nature of the commission had to be made genuinely clear to you. Ask them to point to where you actually agreed to it.
“Your agreement was not a discretionary commission arrangement, so you do not qualify.”
Comeback, The FCA scheme and section 140A both cover non-DCA commission too, including high commission and undisclosed ties to a lender. DCAs are only one route in. Ask them to assess the complaint under the full unfair relationship test, not just the DCA criteria.
“Complaints are paused, there is nothing we can do.”
Comeback, The pause on motor finance complaint handling lifted on 31 May 2026 and the redress scheme is now live. Lodging your complaint now puts you in the queue, so there is no reason to wait.
FAQ
How much could I get back from MotoNovo?
It depends on the commission paid and the interest you were charged. Under the FCA scheme the payout is broadly the commission paid added to a percentage of the interest you paid (17% for agreements from April 2014, 21% for earlier ones), plus compensatory interest at the Bank of England base rate plus 1% (minimum 3% a year). The FCA's own estimate of the average payout across the scheme is around 830 pounds, but individual cases vary widely.
Do I need a claims management company?
No. The whole point of the scheme is that it is free to use directly. A claims firm can take a sizeable cut of your money, often around 30% plus VAT, for filling in a form you can complete yourself in a few minutes. Complain directly to MotoNovo and you keep everything.
Ready to get your money back?
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A self-serve tool, not a law firm. General information, not legal advice.