If loan is deemed unsuitable then it should not have been given in the first place.
But you were.
Making a loan, or not making one, and working out how much to charge you for it, is a free commercial choice by the lender.
They didn't
have to make the loan to you, or make it to you on the terms they did, but they chose to.
Just as you didn't
have to borrow it, from them, from anyone, or on the terms you did, but you chose to.
Therefore, to my mind, the credit provider has to bear the loan loss plus any damages we have incurred.
Your mind is, quite simply, wrong.
In short and simple (and as
@Suzi said above) - no, there's no way that you get to keep the money, or escape the debt (other than have it forgiven by the lender).
Would appreciate clarification with some legal section or case.
Mate, if our word is not enough for you,
then I suggest that you engage a lawyer of your own...
who will charge you a thousand dollars to repeat to you what we've just told you for free.