Originally Posted by guv1976

On the contrary, that's exactly how it can work, if the court or arbitrator has the power to order "equitable relief."

As to the question of valuation, if the arbitrator were to find for the OP and decided to award money damages rather than equitable relief, I don't see why the arbitrator would spend a whole lot of time mulling over the value of 295,000 Avios when we know what BA sells them for:

(BA might not be happy about such a valuation, but if the arbitrator has already found against BA, then that might just be BA's tough luck. Under such circumstances, I would guess that BA would rather restore the OP's account and Avios than pay out almost $7,000 USD.)

And no, a loyalty program could not likely get away with closing the account and causing the forfeiture of points of someone who did nothing wrong, just because the program decided that it did not want to pay out the hundreds or thousands of dollars in value that the member amassed by abiding by the terms and conditions of the program. Aside from the potentially ruinous bad publicity which would ensue, the courts (or an arbitrator) would have something to say about that.