Compensation payments due to consumers mis-sold Payment Protection Insurance (PPI) slowed in January for the first time since September, with £403m paid in redress.
This was down from the peak of £441m paid out in December, bringing the cumulative total paid out since January 2011 to £2.5bn.
The latest figure comes from data collected from 24 firms, up from the 16 firms previously used to assess the payouts, and now accounting for 96% of all PPI complaints received.
Despite the large payouts already seen, the FSA recently told firms who have sold PPI policies that they must contact potential mis-selling victims to inform them of their right to compensation.
At the time, FSA managing director Martin Wheatley said: "We think that the redress due from this process may well exceed what has been paid so far, and that is why we are acting now to clarify our expectations.
"Historically, response rates for these types of exercises are low - sometimes as low as one in ten."
Joined as head of strategy, multi asset, in June
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