By Iona Bain

More than three-quarters of those who are claiming compensation for mis-sold Payment Protection Insurance (PPI) use claims management companies, who can take a quarter or more of the eventual payout, but do not increase the customers' chances of making a successful claim.

The Financial Services Compensation Scheme (FSCS), which has given  £77.5 million worth of compensation to PPI victims since 2001, says the number of applications coming from claims management companies "far outstrips" individual claims.

However, it says paying a third party to submit a claim "does not significantly increase the chances of receiving compensation", the number of successful claims by individuals being almost the same as those made by claims management firms.

Claims management firms can take up to 25% or more of your eventual compensation, which the FCSC estimates could be more than £1,133 for a typical payout.

Credit card users who were mis-sold PPI can apply for a payout directly from the FSCS and should their claim be approved, they can receive all of the compensation they are due.

Mark Neale, chief executive of the FSCS, says: "Consumers should be aware claiming compensation from the FSCS is free and the process is not difficult. In these tough times people may well think they increase their chances of getting their money back but that is not necessarily the case."

He adds: "Each application to the FSCS is judged on its individual merits. Whether it is submitted by a claims management company or by an individual has no bearing on the likelihood of success. 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."