The Financial Services Compensation Scheme (FSCS) is warning consumers against using claims management companies to retrieve money from mis-sold payment protection insurance (PPI).
Figures released by the FSCS show 75% of claims between 2008 and 2011 came from claims management firms, which the FSCS said can take commission "of up to 25% or more."
"Consumers should be aware claiming compensation from the FSCS is free and the process is not difficult," said chief executive Mark Neale.
Paying a third party to submit a claim does not significantly increase the chances of receiving compensation either, the FSCS warned.
The analysis shows the number of successful claims made by individuals is almost the same as for those made by third parties. The uphold rate for claims made through third parties is just under 87%, compared with just over 83% for individuals.
"Each application is judged on its individual merits," said Neale. "If people make the claim directly and it is successful, they receive the full payment, without having to share a big cut with a third party."
Data from the FSA this week showed a 41% increase in PPI payouts in November - £379m, up from £268m.
