Lenders paid out £570.5 million compensation in April to victims of payment protection insurance (PPI) mis-selling, the Financial Services Authority (FSA) announced today.
This is the largest overall monthly payout and pushes the total paid out since January 2011 to £4 billion.
But with an estimated £9 billion of compensation due in total, the process is far from over.
Last month, Lloyds Banking Group, RBS and HSBC set aside £800 million extra between them, on top of their original pots to pay out from. Barclays set aside an extra £300 in April.
There has been a huge jump in compensation since the British Bankers' Association trade body ended a legal battle in May 2011 which attempted to block the FSA's rules on compensation.
These rules force banks to review past sales of PPI – to cover loan or credit card payments when people cannot work – and contact those mis-sold to offer money back, even to borrowers who have never complained.
Earlier this year MoneySavingExpert.com and lobby group Which? joined forces to increase awareness of how easy it is for consumers to reclaim mis-sold PPI for free. For more information on how to reclaim mis-sold PPI for free, see our Reclaim PPI guide.
The most recent figures come from the 24 firms responsible for 96% of complaints about the sale of PPI last year.