MotoNovo Finance is not just another lender caught up in the car finance mis-selling scandal — it is the lender at the very centre of it. The landmark Johnson v FirstRand Bank Ltd (t/a MotoNovo Finance) Court of Appeal ruling, handed down in October 2024, was triggered by a claim against MotoNovo. If you had a MotoNovo PCP or HP agreement before 2021, you are in a particularly strong position to claim.
MotoNovo Was Named in the Landmark Ruling
The October 2024 Court of Appeal ruling in Johnson v FirstRand Bank Ltd t/a MotoNovo Finance established that lenders had a fiduciary duty to disclose commission arrangements to borrowers. This ruling directly applies to all MotoNovo Finance agreements where a DCA was in place.
What Is MotoNovo Finance?
MotoNovo Finance is a UK motor finance brand operated by FirstRand Bank Limited (London Branch), a South African banking group. MotoNovo operated extensively through the UK dealer network, providing PCP and HP agreements to car buyers through thousands of dealerships.
Like other major lenders, MotoNovo operated a system under which dealers could set the interest rate on a customer's agreement within a defined range — and receive a higher commission the more they inflated the rate. This discretionary commission arrangement was hidden from customers and was banned by the FCA in January 2021.
The Johnson v FirstRand Ruling — What It Means for MotoNovo Customers
In October 2024, the Court of Appeal issued a landmark ruling in three conjoined cases, including Johnson v FirstRand Bank Ltd (London Branch) trading as MotoNovo Finance. The court held that:
- The dealer was acting as an agent of the lender (not just the customer)
- The lender therefore owed the customer a duty of disclosure regarding commission
- Concealing the commission arrangement was unlawful and entitled the customer to full rescission of the agreement or a reduction in the amounts owed
This ruling is enormously significant for MotoNovo customers because it establishes a direct legal basis for compensation — not just a general FCA investigation, but a specific court ruling naming MotoNovo as the defendant. The Supreme Court is expected to hear the case in mid-2025.
For a full plain-English explanation of the ruling, read: Johnson v FirstRand Supreme Court Ruling — What It Means for You.
Are You Eligible to Claim Against MotoNovo?
You are likely eligible if:
- You had a PCP or HP finance agreement with MotoNovo Finance
- The agreement was taken out between April 2007 and January 2021
- Finance was arranged through a car dealer
- You were a UK resident at the time
How Much Could You Get from a MotoNovo PCP Claim?
Based on the Court of Appeal ruling, MotoNovo customers could be entitled to:
- Option 1 — Rescission: Full unwinding of the agreement, refunding all interest paid
- Option 2 — Reduction: A reduction in the amount owed or already paid, representing the inflated commission element
For typical MotoNovo agreements, customers could receive between £800 and £4,000 depending on the agreement size, interest rate charged, and duration. Older agreements attract additional interest at 8% per year on top of the principal.
Use our claims guide for a detailed breakdown of how compensation is calculated.
Check Your MotoNovo Claim Now
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Check My Eligibility FreeHow to Start a MotoNovo PCP Claim
- Complete the free eligibility check at motorredress.co.uk
- Register before 29 July 2026 — the FCA deadline for registering complaints
- We submit a formal complaint and Subject Access Request to MotoNovo / FirstRand Bank on your behalf
- We monitor the claim through the FCA redress scheme and escalate to the Financial Ombudsman or courts if needed
- Compensation is paid directly to you if the claim succeeds — our fee is only charged on a win