Close Brothers will not take legal action against Britain's car finance redress scheme, Sky News reports

April 25 (Reuters) - Close Brothers ​have decided not ⁠to launch a legal ​challenge against the UK financial regulator's 9.1 billion pound($12.31 ​billion) ‌compensation scheme for consumers who were allegedly mis-sold car ⁠finance, Sky News reported on Saturday.

* Sky ⁠News had earlier reported ​that Barclays and Santander plan not to participate in a legal challenge to the redress proposals.

* The development comes ​as ‌banks and vehicle manufacturers with finance divisions, which have collectively set aside billions of pounds for compensation, review whether they need to adjust their ​provisions or legally challenge the scheme.

* Lloyds Banking Group ‌had said it will also not take a legal challenge against Britain's car ‌finance redress scheme, the Financial Times reported earlier this month.

* The Financial Conduct Authority (FCA) last month told the ​country's motor finance industry to compensate motorists after inadequately disclosing ‌commissions and contractual ties between lenders and car dealerships over a 17-year period until 2024.

* "While there are elements ⁠of ⁠the scheme that we disagree with, ‌after careful consideration we believe that the existing scheme offers a ​quick, ​clear and certain route to resolving ‌this matter for all relevant parties,” Sky News reported, citing a statement. ($1 = 0.7391 pounds) (Reporting by Preetika Parashuraman in Bengaluru; Editing by Andrea Ricci)

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