MotoNovo Finance Claims: What You Need to Know

Quick Navigation: Contents

• Introduction
• Background of MotoNovo Finance
• MotoNovo Finance Products
• FCA Review of Discretionary Commission
• Unaffordable Lending Claims
• Discretionary Commission Claims
• The Claims Process
• Conclusion

Introduction

MotoNovo finance claims are on the increase. Motonovo has been a big name in car finance for over 40 years. Recently, there’s been a lot of talk about MotoNovo finance claims. This is because the Financial Conduct Authority (FCA) announced a review of how car finance companies have been doing business. If you’ve got a car loan from MotoNovo, you might be wondering what this means for you.

Let’s break down what’s happening and what you need to know about MotoNovo finance claims.

Background to MotoNovo Finance

MotoNovo Finance is a company that helps people buy cars, vans, and bikes by lending them money. They’re based in Cardiff, Wales, and have been around since the 1970s. Over the years, they’ve grown to be one of the biggest car finance companies in the UK. They know a lot about what customers need and what’s happening in the car finance world.

MotoNovo works with car dealers to offer finance options to customers. They’ve won awards for their service and have good reviews from many customers. In fact, they have a 4.6-star rating on Trustpilot from over 30,500 reviews. This shows that a lot of people like their service.

Unaffordable lending claims have become a big topic in the finance world, and MotoNovo is part of this discussion. These claims are about whether finance companies lent money to people who couldn’t really afford it. This has become a big deal recently, with regulators taking a closer look at how finance companies lend money.

MotoNovo Finance Products

MotoNovo offers two main types of finance:

1. Hire Purchase (HP): This is where you pay for the car in monthly installments. Once you’ve made all the payments, the car is yours. You usually pay for 1 to 5 years. This is good if you want to own the car at the end.
2. Personal Contract Purchase (PCP): With this option, you pay less each month, but at the end, you have to make a bigger payment to keep the car. Or, you can give it back or trade it in for a new one. This is good if you like to change cars often.

They also have a service called MotoNovo Commercial for businesses that need to finance vehicles. This is for companies that need cars or vans for their work.

Our services can help you understand which type of finance you have and if you might have a claim. We can explain things in a way that’s easy to understand.

FCA Review of Discretionary Commission

On January 11, 2024, the FCA said they’re going to look into how car finance companies have been using something called “discretionary commission arrangements.” This is important because it could mean that a lot of people paid more for their car finance than they should have. The FCA wants to make sure people are treated fairly when they borrow money.

The FCA stopped these arrangements in 2021, but they’re now looking at what happened before that. They think this might have cost customers about £165 million extra each year. This could mean that many people might be able to get some money back.

Unaffordable Lending Claims

Unaffordable lending is when a finance company gives someone a loan they can’t really afford to pay back. If this happened to you with MotoNovo, you might be able to make a claim. This is a serious issue because it can cause people a lot of money problems.

Signs that your loan might have been unaffordable include:

• You had to borrow more money to make your payments
• You fell behind on other bills to pay for your car
• You had to cut back on essentials like food or heating to make payments
• Your credit score got much worse after taking out the loan
• You couldn’t save any money because of the loan payments

Learn more about unaffordable lending claims and how we can help you check if you’re eligible. We can look at your situation and help you understand if you can make a claim.

Discretionary Commission Claims (PCP Claims)

Discretionary commission was a way that car dealers could set the interest rate on your finance. The higher the interest rate, the more money they got. This meant that some people ended up paying more than they needed to. It wasn’t fair because the dealers might have charged higher rates just to make more money.

The FCA found that on a typical £10,000 car finance agreement, customers paid around £1,100 more in interest than they should have. That’s a lot of extra money! This shows how much these arrangements cost people.

If you got car finance from MotoNovo before January 2021, you might be able to claim some of this money back. This is important because before 2021, these arrangements were allowed, but now they’re not.

The Claims Process

Making a claim might sound hard, but it doesn’t have to be. Here’s how it usually works:

1. Gather your evidence: This includes your finance agreement and any other important papers. You might also need bank statements, credit reports, and letters from MotoNovo.
2. Submit a complaint: You can do this directly yourself for free to MotoNovo or through a claims management company like us (fees apply). The complaint should explain why you think you were treated unfairly.
3. Wait for a response: MotoNovo should respond within 8 weeks. They’ll look at your claim and the evidence you provided.
4. If you’re not happy with the response, you can take your claim to the Financial Ombudsman Service. They’re independent and can make a final decision on your case.

Conclusion

MotoNovo finance claims are a big deal right now. If you’ve had car finance with MotoNovo, especially before 2021, you might be owed money. It’s worth checking if you could make a claim for unaffordable lending or unfair discretionary commission. You could get back a significant amount of money, and many people might not know they were affected.

Remember, you don’t have to do this alone. We can help you through the process, making it easier and less stressful. Our team knows a lot about these claims and can give you the best chance of getting your money back. We keep up with all the latest changes and have helped many people successfully make claims.

Don’t let the idea of making a claim put you off. It’s your right to be treated fairly, and if you’ve paid too much, you deserve to get that money back. Take the first step today and see if you could be owed compensation from MotoNovo Finance. The claims process is designed to be accessible to everyone, and getting professional help can really increase your chances of success.

Interested in using us to handle your claim? Get in touch with us today. Our friendly team is ready to look at your case and help you through every step of making a claim.

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