Lender holds about £15bn in loans through Black Horse and could have to pay compensation for mis-selling

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Lloyds Banking Group has said it is assessing the potential impact of a landmark court ruling over car finance mis-selling on Friday, which may lead to lenders paying out billions of pounds in compensation to borrowers.

The bank, which is the most exposed among high street lenders and holds about £15bn in car loans through its Black Horse division, stopped short of offering any guidance on how much it may be forced to put aside to handle potential payouts. However, Lloyds said it would update the market “if and as appropriate”.