439 million was paid out to victims of payment protection insurance (PPI) mis-selling in January, the Financial Services Authority (FSA) has revealed.

The monthly figure has risen since December, when 360 million was paid out.

It brings the total amount paid out for mis-sold PPI since January 2011 to 8.9 billion. The total industry-wide bill is expected to reach up to 15 billion.

The largest monthly payout to date was 735 million, in May 2012.

Earlier this month, Lloyds Banking Group set aside a further 1.5 billion for refunding customers who were mis-sold PPI, bringing its total costs to 6.8 billion since January 2011.

Last month, the Royal Bank of Scotland allocated another 450 million to cover PPI claims, bringing its total to 2.2 billion, while Barclays also set aside a further 600 million in February, taking its total bill so far to 2.6 billion.

In January, the FSA held discussions with the British Bankers' Association over the possibility of setting a deadline for reclaiming PPI, a proposition MoneySavingExpert.com strongly opposes (see the Claim PPI now MSE News story).

The FSA's figures come from the 24 firms responsible for 96% of complaints about PPI sales last year.

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