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MotoNovo Finance Claims: How to Get Your Money Back

#pcpclaims #carfinance #motorfinance #uk

MotoNovo Finance Claims: How to Get Your Money Back

MotoNovo Finance is one of the UK's largest specialist motor finance providers, and one of the lenders most directly implicated in the DCA scandal through the Johnson v FirstRand litigation. Its parent company, FirstRand Bank, was the losing party in both the Court of Appeal ruling of October 2024 and the Supreme Court ruling [2025] UKSC 33. MotorRedress (www.motorredress.co.uk) provides this comprehensive guide to pursuing a MotoNovo Finance claim.

MotoNovo Finance and Its Corporate History

MotoNovo Finance is a trading name of FirstRand Bank Limited (London Branch). FirstRand is South Africa's largest banking group by assets and operates in the UK through two main consumer lending brands:

  • MotoNovo Finance — motor finance exclusively (the name most commonly seen on PCP and HP agreements)
  • Aldermore Bank — broader retail and business banking (acquired by FirstRand in 2018)

For the purposes of motor finance DCA claims, MotoNovo Finance is the relevant entity. Aldermore also provided some motor finance, but MotoNovo is the primary vehicle.

Key facts:

  • Legal name: FirstRand Bank Limited (London Branch), trading as MotoNovo Finance
  • FCA authorisation: registered as UK branch of FirstRand Bank Limited
  • Registered address: 95 Gresham Street, London, EC2V 7NU

Why MotoNovo Is Central to This Scandal

The lead case in the landmark litigation — Johnson v FirstRand Bank Limited — involved a MotoNovo Finance agreement. Marcus Johnson financed a BMW through a dealer using a MotoNovo PCP product. The DCA structure meant the dealer could set the interest rate within a range and earned a higher commission for a higher rate. No adequate disclosure was made.

The Court of Appeal's October 2024 ruling specifically addressed the MotoNovo agreement structure and found:

  • MotoNovo's standard documentation did not disclose the DCA adequately
  • The dealer owed Mr Johnson a fiduciary duty in the credit-broking role
  • Receiving the DCA commission without informed consent was a breach of that duty

The Supreme Court confirmed these findings in [2025] UKSC 33. FirstRand (as MotoNovo's parent) is therefore the lender whose practices have been most thoroughly litigated and confirmed as giving rise to consumer redress.

MotoNovo's Market Presence

MotoNovo Finance operates through a large network of approved car dealers, primarily:

  • Used car specialists and supermarkets: MotoNovo has historically been strong in the used car segment, where dealers have more pricing flexibility
  • Independent franchise dealers: particularly for mid-range and premium brands
  • Online car retailers: MotoNovo has been a preferred lender for some early digital car retail platforms

If you purchased a used car from a dealer (particularly from 2010 onwards when MotoNovo significantly grew its dealer network) and the finance was not from a captive lender (e.g., if you bought a BMW but the finance was not BMW Financial Services), MotoNovo is a very common provider.

The MotoNovo Agreement: What to Look For

On original documentation:

  • Creditor listed as "FirstRand Bank Limited (London Branch)" or "MotoNovo Finance"
  • The MotoNovo logo (orange branding) may appear on the agreement or covering letter
  • Product types: "MotoNovo PCP", "MotoNovo HP", or simply listed by agreement type with MotoNovo branding

On bank statements:

  • "MOTONOVO FINANCE"
  • "FIRSTRAND BANK"
  • "FNB" (less common)

Step 1: SAR to MotoNovo Finance

The Subject Access Request is your first and most important step.

SAR contact details:

  • Email: dataprotection@motonovo.com
  • Post: Data Protection Officer, MotoNovo Finance (FirstRand Bank Limited London Branch), 95 Gresham Street, London, EC2V 7NU

Request specifically:

  • All personal data held in connection with motor finance agreements
  • The original agreement documentation
  • Records of any commission paid to the introducing dealer
  • Details of whether the commission structure was fixed or discretionary
  • Any communications with the dealer concerning interest rate setting

MotoNovo must respond within 30 calendar days.

Step 2: Submitting Your Complaint to MotoNovo

Complaint channels:

Complaint letter:

"I am writing to register a formal complaint regarding a motor finance agreement provided by MotoNovo Finance (FirstRand Bank Limited London Branch). I understand that MotoNovo operated discretionary commission arrangements that were not disclosed to me, in breach of CONC 4.5 and the duties established by [2025] UKSC 33 (Johnson v FirstRand and related cases).

I am seeking full redress including disgorgement of the commission paid to the introducing dealer, compensation for excess interest I paid as a result of the DCA, and 8% restitutionary interest from the date of each payment, in accordance with the FCA's redress framework under CP25/27.

My agreement details: [vehicle make/model, approximate date, any reference number]"

Request a written acknowledgement with a complaint reference number.

MotoNovo's Response Under the Pause

MotoNovo is subject to the FCA's complaint handling pause. Like other lenders, it will acknowledge DCA complaints but not resolve them until the pause lifts and the formal scheme opens. This is expected and does not impair your claim.

Specific Considerations for MotoNovo Claims

FirstRand's Financial Position

FirstRand Bank is South Africa's largest banking group and has the financial capacity to meet UK DCA liabilities from its balance sheet. Unlike smaller UK-only lenders (such as Close Brothers), there is no systemic risk of FirstRand being unable to pay validly established claims. However, as a foreign-registered entity operating through a UK branch, the regulatory interaction is slightly more complex. The FCA has oversight of MotoNovo's UK operations in the normal way.

The Welsh Operations Centre

MotoNovo's UK operations are managed from Caerphilly. All written complaints and responses will be processed there. Allow standard postal delivery times when writing.

Aldermore Cross-Claims

If you have both a MotoNovo Finance agreement and an Aldermore motor finance agreement (less common, but possible if Aldermore provided finance through some dealer channels), register complaints with both entities. They are part of the same FirstRand group but are separate legal entities for claims purposes.

Calculating Your MotoNovo Redress

Because the Johnson v FirstRand case is the foundation of the entire redress framework, MotoNovo's obligation to apply the disgorgement remedy is perhaps the most clearly established of any lender. The calculation applies:

  1. Commission disgorgement: the actual DCA commission paid to your dealer (to be confirmed via SAR)
  2. Excess interest: the difference between what you paid and the minimum available rate over the full term
  3. 8% simple interest: from the date of each monthly payment to the date of settlement

For MotoNovo used car agreements — which typically ran at higher rate spreads than new car captive finance — the excess interest component is often the largest element.

Escalation to the Financial Ombudsman

If MotoNovo's redress offer is inadequate:

The FOS has considered MotoNovo/FirstRand complaints extensively given the litigation history. Decisions binding on MotoNovo have been issued confirming DCA liability. A FOS escalation for a MotoNovo claim is therefore well-supported by precedent.

Conclusion

MotoNovo Finance is uniquely positioned in the DCA scandal — it is the lender whose agreement was the subject of the litigation that confirmed the legal basis for all UK motor finance DCA claims. If you have a MotoNovo agreement, your path to compensation is well-trodden by court precedent.

Register your MotoNovo claim at MotorRedress.

This article is for educational purposes only. Compensation amounts vary. Eligibility criteria apply.

Originally published on MotorRedress

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