For the credit union, this is illegal lending. It is obvious that the credit union did not conduct a

pre-loan investigation

nor did it conduct a loan review. Make it clear. The point is that the two colluded, and for your friend, it was suspected of loan fraud. If the credit union insists on collecting money from you, you can choose to report the case and hold them legally responsible according to law. As long as you do not sign the loan contract

, you do not have to bear the repayment responsibility.