The payment protection insurance (PPI) mis-selling scandal has cost financial services £1.375bn so far this year, according to FSA payout figures.
The City watchdog's monthly PPI refund and compensation figures show an additional £499.5m claims for March; the overall total is now £3.5bn since the regulator began recording figures January 2011.
The numbers are still rising significantly, from £403.4m in January this year and £472.5m in February.