Banking group ‘adapts quickly’ as industry and Treasury hold urgent talks after court of appeal ruled that consumers were mis-sold loans

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Lloyds Banking Group has scrapped commission payments across its £15bn motor finance arm over a landmark ruling on car loan misselling, as industry and Treasury officials hold urgent talks amid fears of contagion across the wider financial sector.

The moves follow last week’s court of appeal judgment, which agreed that consumers could not have consented to loans that involved “secret” commission payments to brokers and car dealers.