What is a reasonable amount of compensation for mis-sold PPI insurance?

Not legal advice, I'm a proofreader not a lawyer, etc. The amount you paid plus statutory interest would be a reasonable guess at what you would get if you took it to court and won. If it helps, when Mrs Peteyjlawson took Natwest to court over bank charges, she received an uncontested judgment for the amount she requested, which was the sum she'd been erroneously charged plus statutory interest (8% at the time, no idea what it is now), as well as reimbursement for fees to file the case at the small claims court. She had to provide paperwork to show that her sums added up in the form of highlighted itemised bank statements. You're unlikely to get a higher award or any punitive compensation for damages unless you could prove that being missold PPI caused you significant and tangible financial hardship or other damage. To me, it sounds like they're trying to save themselves the court fees and offering you the amount they'd be legally obliged to, so I'd take the offer and save myself the hassle.

"Legally, if you have been mis-sold PPI you can claim the cost of the PPI policy plus all interest. In effect, this aims to put you back into the same financial position you would have been in if you had not taken out PPI with the loan." [http://www.iamhappi.com/how-much-ppi-will-i-get] So if that's what you're being offered, take it. If it isn't, calculate that value and tell the bank you'll take that. Simples.

Yes, the FOS's general position on upheld complaints is that you should be put back in the position you would have been if you had not been mis-sold the product. I have heard of cases where someone who successfully claims they were mis-sold PPI has ended up owing even more, because they had previously made a claim on the PPI, and the bank claims the payout back, and offsets it against the premiums. If you are really £3K out of pocket due to having taken on the PPI policy you will have to show how, eg because you have paid £3K in premiums on a bad policy. See the case studies http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/PPI-case-studies.html and consider how your facts fit.

I'd suggest posting this on the 'Reclaiming PPI' board on MoneySavingExpert. Many there have experience of this and what can be claimed. I#m neither a lawyer nor an accountant, but based on what I know professionally regarding these claims and the advertising of them, I would agree with peteyjlawson. That is, if your claim is regarding PPI and not some other form of financial mis-selling. It seems standard in my experience to offer premiums plus interest and any other incurred costs such as court fees. Those who received large sums did so because their premiums and term of loan was higher, and they are unusual cases, or involve larger loans such as mortgages or secured debt. You may get £3000 if your premiums paid plus the interest calculated comes to this sum. In your case, that sum appears to be £350 - it's calculated on what you paid plus the interest rate as you say. As I said, IANAL, IANAA, but they won't pay you more than they are obliged to in terms of the PPI costs.