MotoNovo Finance PCP Compensation Claims

Were you charged excessive interest on a MotoNovo Finance PCP agreement? You could be entitled to substantial compensation.

FirstRand Bank, the parent company of MotoNovo Finance, has set aside approximately £130 million to cover potential compensation claims linked to car finance mis-selling. The October 2024 Court of Appeal ruling in Johnson v FirstRand Bank Ltd confirmed that failing to disclose broker commission breached fiduciary duty, making many MotoNovo Finance PCP agreements unfair and mis-sold. If you took out a MotoNovo Finance PCP agreement, you may be eligible for full compensation of overpaid interest and fees.

The MotoNovo Finance Ruling and What It Means

In October 2024, the UK Court of Appeal delivered a landmark ruling in Johnson v FirstRand Bank Ltd (trading as MotoNovo Finance). The court found that MotoNovo Finance and its brokers failed to disclose broker commission to customers, which amounted to a breach of fiduciary duty. This is a critical finding that opens the door to compensation for potentially thousands of affected customers.

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WHAT WE COVER

We specialise in reclaiming funds from MotoNovo Finance PCP agreements that involve undisclosed commission, excessive interest rates, or other unfair lending practices:

Undisclosed Broker Commission

MotoNovo Finance brokers earned commission by increasing your interest rate without telling you. You signed a contract thinking you were getting a specific interest rate, but the broker secretly adjusted it upward to boost their earnings. The October 2024 court ruling confirms this practice breached your fiduciary rights and made your agreement unfair. You are entitled to a full refund of the commission and interest you paid.

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EXCESSIVE INTEREST RATES

Many customers were charged significantly higher interest rates than necessary because brokers manipulated rates to earn higher commissions. Unlike transparent lending where rates are set by clear criteria (credit score, loan amount, term), MotoNovo Finance allowed brokers to exercise discretion without proper disclosure. If your rate was higher than expected or you were not given clear information about how the rate was calculated, you qualify for compensation.

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Unfair Lending Practices

A MotoNovo Finance PCP agreement may be considered mis-sold if key information was missing, misleading, or unclear at the time you signed. This includes situations where you were not informed about the broker's financial interest in increasing your rate, where the total cost of finance was obscured, or where you were pressured into a deal without proper time to review. Our claims team will assess your specific circumstances and determine eligibility.

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LATEST NEWS

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FAQs

What is a MotoNovo Finance PCP claim?

A MotoNovo Finance PCP claim is a request for compensation where a Personal Contract Purchase agreement involved undisclosed broker commission, excessive interest rates, or other unfair lending practices. The October 2024 Court of Appeal ruling (Johnson v FirstRand Bank Ltd) confirmed that failing to disclose broker commission breaches fiduciary duty, making these agreements unfair and eligible for compensation.

What did the Johnson v FirstRand Bank ruling mean?

The October 2024 Court of Appeal ruled that MotoNovo Finance brokers breached customers' fiduciary rights by failing to disclose commission. This means the practice of increasing interest rates without disclosure is now confirmed as unlawful. This ruling validates claims being pursued by thousands of affected customers and forms the foundation of compensation claims.

Can I make a MotoNovo Finance claim if my agreement has ended?

Yes. You may still be eligible to make a MotoNovo Finance PCP claim even if your agreement has finished, provided it falls within the relevant timeframe and meets mis-selling criteria. The ruling applies to agreements dating back several years. Time limits may apply depending on when you became aware of the issue, so it is recommended to register your interest as soon as possible to protect your position.

What is undisclosed commission in a MotoNovo Finance agreement?

Undisclosed commission occurs when a broker earns money by increasing your interest rate without clearly telling you. You may have agreed to a 4.5% rate, but the broker secretly increased it to 7.2% to earn commission from the difference. You were not informed of this practice or how it affected your total finance cost. The courts have ruled this breaches your fiduciary rights and makes you eligible for compensation.

How much compensation could I receive from a MotoNovo Finance claim?

Compensation varies but typically includes a refund of broker commission, a refund of all overpaid interest due to the inflated rate, statutory interest on refunded amounts (usually 8% per annum), and potentially additional compensation for breach of fiduciary duty. FirstRand Bank has set aside £130 million to cover claims. Each claim is assessed individually based on your agreement terms, the commission involved, and the duration of overpayment.

Should I wait for the Supreme Court decision before making a claim?

You do not need to wait to register your interest or submit a claim. While further legal proceedings may occur, the October 2024 Court of Appeal ruling is already binding. FirstRand Bank has already set aside £130 million in recognition of liability. Registering now helps protect your position and demonstrates your awareness of the issue, which is important for time-limit considerations. Do not delay.

How do I check if my MotoNovo Finance PCP was mis-sold?

You should review your agreement documentation and ask yourself: Was broker commission disclosed? Did the broker have discretion over the interest rate? Were you informed about how your finance costs were calculated? If you cannot find clear answers to these questions in your paperwork, you likely have a valid claim. Our free claim review will assess your specific circumstances and confirm your eligibility based on the court ruling.

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