Lloyds Banking Group PLC (LYG.US) has announced that it does not currently plan to increase provisions further for compensating customers mis-sold car loans, following the UK regulator's release of a final industry-wide compensation scheme this week. In a statement issued on Thursday, the bank stated it had "assessed the impact of the final rules and their consequences" and "currently sees no need to adjust the provision amount set aside for this issue." Previously, Lloyds Banking Group had disclosed provisions nearing £2 billion (approximately $2.6 billion), the highest known among its peers. The UK Financial Conduct Authority (FCA) had estimated in October last year that some of Britain's largest car finance lenders would pay around £8.2 billion to compensate affected customers. To initiate the refund program, lenders were also expected to bear around £2.8 billion in additional costs, bringing the total estimated cost to approximately £11 billion. However, the FCA now anticipates that lenders will collectively pay £7.5 billion in compensation, with the cost of operating this "streamlined" scheme estimated at around £1.6 billion. This brings the total expected cost for the industry to £9.1 billion, lower than the previously forecasted £11 billion. Lloyds Banking Group's response indicates it will follow the FCA's call to proceed with the revised scheme rather than mount a legal challenge. For months, the industry had argued that the regulator's initial proposals were overly stringent and failed to adequately consider a ruling from the UK Supreme Court last year. In August, the Supreme Court ruled in favor of lenders, stating that banks are only required to pay compensation when "the most serious misconduct" is found. At the time, many bank analysts and investors viewed the ruling as significant relief for lenders.