Firms have now handled over 13m PPI complaints since 2007 with £16bn paid out in redress since January 2011, which is when the FCA began tracking payments.
The Financial Ombudsman Service has received over 1m complaints from people unhappy with the response from their provider – or roughly a quarter of all rejected complaints.
A further 3.2m letters have already been sent to people who are likely to have been mis-sold PPI but have yet to complain, with another 2m to be sent in the coming months.
However, the FCA said firms’ complaint-handling has improved.
It confirmed the raft of banks, credit card providers and personal loan companies caught up in the PPI scandal have agreed to reassess more than 2.5m complaints from 2012 and 2013 which they may have either unfairly rejected or underpaid in redress terms.
Martin Wheatley, chief executive officer, at the FCA, said: “Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where it’s due, is an important step in rebuilding trust in financial institutions.
He added: “Given the enormity of this exercise it is no surprise that there have been some issues along the way but our approach is delivering a good result for consumers.”