Student won’t have to repay loan – court says bank’s mistake!

A Canadian bankruptcy court ruled a Nova Scotia ex-student with bank loans worth $50,000 doesn’t have to pay it back as the bank wasn’t wise in issuing them.

What!?

Alfredo Abdo, now 23, took out the first loan worth $20,000 from the Royal Bank of Canada in Halifax in his second year studying engineering at Dalhousie University in 2004, the Canadian Broadcasting Corp. reported.

Despite having a grade point average of 4.06 and a scholarship, Abdo lost much of the loan through bad online investments, the court heard.

The bank then offered him a second loan of $30,000, which he took. After switching to commerce from engineering, Abdo told the court he began experiencing stress-related dizzy spells and he dropped out of school and couldn’t find work.

He filed for bankruptcy a year ago and now lives with his mother, the report said.

Bankruptcy registrar Richard Cregan ruled against the bank’s claims for at least a partial repayment.

Another good reason – I guess – for keeping my Canadian options open. Like if I ever want a loan I intend to default on.

2 thoughts on “Student won’t have to repay loan – court says bank’s mistake!

  1. Cinaedh says:

    This story is a bit confusing to me.

    The only way any bank would even consider loans for me to attend university was if the government guaranteed them – and you’d better believe everyone concerned was extremely persistent when it came to repayment of those loans, plus big-time interest.

    Bankruptcy was definitely not an option on the table as it was specifically verboten by government rules.

    Pardon me. I’m just on my way out the door right now to arrange a very large loan with my local bank and yes, I have heart-related dizzy spells – all the freaking time!

    Woo Hoo!

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