The number of claims handled by a financial compensation scheme soared by 180 per cent during the past financial year as it worked to keep on top of mortgage endowment complaints.
The Financial Services Compensation Scheme, which pays out to people who have lost money or who are owed compensation by financial services firms that have gone bankrupt, handled 26,000 claims during the year to the end of March, up from 9,220 during the preceding 12 months.
The group said the increase in claims processed was due to strategies it had put in place to deal with a surge in the number of endowment compensation claims it was receiving.
It said during the year it received 20,100 new endowment claims, 131 per cent more than during the previous 12 months, which was itself a record year.
Loretta Minghella, chief executive of the FSCS, said: "The last financial year marked a real turning point for FSCS. A year ago the FSCS was facing a rising backlog of claims, driven by the rise in endowment complaints.
"We gave a commitment to consumers that we would put in place measures to deal with this rise in claims, and promised that we would complete 15,000 endowment claims in the financial year.
"We have delivered on this promise, and exceeded it. We completed over 16,000 endowment claims in the year. Our strategies are now really starting to pay off."
Out of the endowment claims handled, 46 per cent led to compensation being awarded, with an average of £2,000 being paid out to each person.
The figures come the day after the Financial Ombudsman Service said it received 250 new complaints about endowment mortgages each working day during the past financial year - 69,149 during the year to the end of March, accounting for 61 per cent of all complaints received.
Overall the FSCS paid out £201.2 million in compensation during the year, up from £174.7 million in 2004/2005.
General insurance accounted for the highest level of payments at £93.2 million, with compensation paid to people who had lost out as a result of insurers, such as Independent Insurance and Chester Street, becoming insolvent.
The group also handled 3,000 claims relating to high-risk precipice bonds, 84 per cent of which led to compensation payments averaging £7,000, while 4,900 pension review claims were looked at, 81 per cent of which led to compensation, with people receiving around £22,700 each.
During the year the group received 95,000 telephone enquiries, 120 per cent more than during the previous year, and 45,500 written enquiries.