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How to bring a MotoNovo finance claim

Firms that supply car finance are under the spotlight over concerns that consumers have potentially overpaid thousands of pounds on their agreements due to hidden commissions.

An estimated 90% of all new car purchases in the United Kingdom – not to mention a sizeable portion of used car purchases – use some form of financing, most of which are personal contract purchase (PCP) agreements but with hire purchase (HP) also popular. As such, it is likely that many thousands – perhaps even tens or hundreds of thousands – of consumers have been mis-sold.

Car finance providers, including MotoNovo, have already started setting aside significant sums of money to compensate customers who have been mis-sold.

How can I claim compensation from MotoNovo?

The first thing to do is to complete our free, no-obligation online check.

In just a few minutes, we’ll be able to tell you if we think your car finance agreement was mis-sold and get you on track to getting your money back.

Check your car finance claim with LawPlus Solicitors now!

What are the problems with some PCP agreements?

As with any finance agreement, when taking out your PCP deal, you would have repaid the money at a set interest rate.

However, in many PCP agreements, interest rates were artificially increased via discretionary commission arrangements (DCAs). The reason? Because the person selling the car or arranging the car finance stood to earn more commission if you paid a higher rate.

And as the dealer or finance company included the commission in your interest rate and payment, you never knew about it.

The Financial Conduct Authority banned DCAs on 28th January 2021, but there is still concern that the practice continued after this date.

How do I know if my car finance agreement was mis-sold?

One of the trickiest things about financial mis-selling is that it’s usually very tricky to know when it’s happened to you.

Think back to when you took out a PCP agreement in the past. Indicators that yours was mis-sold include:

  • If the car dealer told you their finance deal was the best option, rather than offering you a range of options or encouraging you to shop around for the deal that suits you.
  • If the car dealer didn’t disclose they’d earn a commission from getting you to sign their finance deal.
  • The car dealer not telling you how much commission they’d make from the deal.

Most car finance claims brought on these grounds succeed on the basis that:

  • A commission wasn’t disclosed.
  • You paid a higher interest rate and repaid more than you would have had the commission not been there.
  • Had you known about the commission and that your interest rate was higher than it could have been, you would have shopped around to save yourself some money.

Check your car finance claim with LawPlus Solicitors now!

How much compensation can I claim for mis-sold car finance?

LawPlus Solicitors’ clients are receiving, on average, £1,500 compensation per mis-sold car finance agreement.

Your compensation award will depend on several factors, predominantly:

  • The value of the car you purchased, the level of financing needed, and the value of your repayments.
  • The length of the agreement.
  • The extent to which you overpaid due to the interest rate charged.

Can I claim for old PCP agreements?

Yes. You can bring a PCP mis-selling claim on an existing or previous agreement where you may have been mis-sold.

Is MotoNovo the only car finance company affected?

No. The car finance mis-selling scandal will likely be far-reaching, affecting many brands offering PCP and HP financing solutions.

Lloyds Banking Group, which provides car financing through Black Horse Finance, has already admitted it is setting aside money to pay compensation claims. In addition, the FCA, which is currently investigating car finance mis-selling and has a report due by the end of September, has already told lenders to ensure they can cover any mis-selling complaints it receives.

The regulator also recently admitted to Parliament’s Treasury Committee that it was considering introducing a formal redress scheme that would force companies to pay redress to affected consumers.

Start your claim now with LawPlus Solicitors!

If you’ve had a PCP car finance agreement in the last six years, you can use our free online check to discover if you may be owed compensation.

Check your car finance claim now, and take the first step to getting back the overpayments you shouldn’t have made!

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