I undersand your point of view, but i cannot repay 0.12 BTC that's not mine.
It was this account that requested the loan, if you purchased that account with the open loan, the duty of cleaning out that debt goes on to you.
Either do it yourself, or work it out with the previous owner, but either way, get clean with it!
Lender is agree for receive 0.02 BTC as full and final settlement for defaulted loan.
That might work for the lender, not for me.
In net, that leaves the lender with a 0.1
BTC loss (which might be ok for them),
with something like that open, I can't justify removing my feedback.
After i'll done this, i'll contact you.
Contact me after you paid what you owe, fully paid it, and we might work something out.