Ppi and loan arrears

AppleDap

Hi
My friend is claiming PPI for an old loan, but currently has an existing loan with the same bank. The current loan he has is in arrears to just under 2 months and has a payment arrangement in force to clear the arrears. This payment each month is in addition to the normal monthly payment.
He understands that if his complaint is upheld that the bank will take some of the money to clear the arrears, but his question is will they take all the money he may get to offset the debt.
The arrears owing is a lot less than his expected PPI payout, but the total balance he owes on the loan is much greater.
He has not officially defaulted on the loan.
Thanks

-taff

They can take everything that's may be redressed to pay the loan if they like apart from any interest b ecause he's in default/arrears but they may not.
He'd better speak to the bank about it.