In 2012, double the number of people made claims from failed PPI firms, compared to the previous year, research has found.
Claims management companies take a sizeable chunk of any payout. Consumers who make a claim directly to FSCS keep every penny of their compensation.
Some people may prefer to use a claims management company, but it is important that they understand the charges from the outset and are happy to pay them.
Figures released today have shown that the number of people making claims for mis-sold payment protection insurance (PPI) from firms which have gone bust, has almost doubled year-on-year.
According to the Financial Services Compensation Scheme (FSCS), nearly 20,000 people submitted claims in 2012, compared to more than 10,000 in the previous year.
The findings come after the Financial Ombudsman Service (FOS), reported that it handled 11,000 complaints a week about PPI mis-selling, in the last three months of 2012.
The service resolves disputes between people and financial services firms,
The extra £1 billion set aside by Barclays for mis-selling of products comprises £600 million for PPI compensation and £400 million for interest rate swaps for small businesses.
Barclays is to increase provisions to provide compensation for the mis-selling of payment protection insurance and interest rate swap products sold to small and medium-sized businesses by another £1 billion.
The Financial Services Authority has said they will consider the request from banks to place a time limit on Payment Protection Insurance (PPI) claims:
Our key priority is to ensure consumers are protected, so the FSA Board would need to be convinced that any proposals would be in the interests of consumers.
We have had initial discussions and are prepared to consider the merits of this and other options.
A key consideration will be the potential to get compensation to more consumers, more quickly.
However, no changes to existing FSA, or future Financial Conduct Authority (FCA), rules would take place without a full public consultation.
They do not sound convinced!
The Royal Bank of Scotland's announcement that mis-sold payment protection insurance (PPI) claims have cost the taxpayer-backed bank £1.7 billion has taken the total bill for Britain's "Big Four" lenders to more than £10 billion.
Yesterday, Lloyds Banking Group set aside another £1 billion to cover PPI claims, bringing the total to £5.3 billion, while Barclays announced an additional £700 million, giving it a total of £2 billion.
HSBC is forecast to post a more modest provision next week.
Stephen Hester, RBS Group chief executive, said the Royal Bank of Scotland is "having to work very hard to stand still", adding, "We aspire to achieve much more".
Mr Hester said in the bank's interim management statement:
The extraordinary challenges which RBS faced following the financial crisis are being worked through successfully.
Beneath these headlines our people have been working hard at supporting our customers and rebuilding the capabilities of the core business, the future RBS that is emerging from our work.
In doing this we face the same strong economic and regulatory challenges as other banks and are having to work very hard to stand still in the face of these challenges.
We aspire to achieve much more; in short, to be running a really good RBS.
The Royal Bank of Scotland (RBS) unveiled a pre-tax loss of £1.26 billion in the third quarter, compared to a £2 billion profit during the same period last year.
RBS said it also had a third quarter net loss of £1.38 billion.
The Royal Bank of Scotland (RBS) has revealed an additional £400 million charge to cover the cost of mis-sold payment protection insurance (PPI) claims, bringing the total bill to £1.7 billion.
RBS also said the cost of its recent IT glitch had risen by £50 million to £175 million.