Every PPI is different as it depends how much you've actually paid into it so to make a broad statement regarding payout is misleading. I think you mean a "Goodwill Gesture payout" which is basically a claim without the provider admitting misselling but stops you claiming the actual monies you have paid in over the years at a later date! Be careful of accepting low offers til you've made a rough calculation of what you've paid in (+8% interest which may or may not be applied as it's discretionary)
http://www.moneysavingexpert.com/reclaim/ppi-loan-insuranceThis site will provide you with all the information you need and even the standard letters used to make a claim - and it wont cost you a single penny! Any insurance policy (Credit card, loan, HP agreement etc) which you've been sold or has been attached to your finance agreement either with or without your knowledge is potentially missold and therefore potentially a claim. It might cost you a couple of pounds (usually £1.00 for each account) to get access to all your old agreements but you could claim thousands. There is a time limit though so not all accounts/loans will payout but it's worth a try! Good luck.
oh and by the way, if your account has been taken over by a debt collection company or if you've got an arrangement to pay off with the finance company or bank, still apply as it'll either be offered to you or taken off your debt. In some cases you can plead a "hardship" case as usually its the cost of these policies that make repayments too high to repay. In other words, the PPI got you into financial difficulty in the first place!!