At first place, it is a mistake by the OP to apply a loan without any collateral. The OP isn't trusted enough to apply for a non collateral loan.
I don't see any mistake here, this is a loan application and this is not an attempt of scamming.
If only non DT member would tagged him, he would not mind it, but LFC is a DT, that affects a lot to the account as people think DT are always right.
I'm neutral against the negative trust that LFC left to him since both the OP and the DT both did mistakes. OP applying a non collateral loan and the DT who left a neg trust which I think very unfair.
I have to respect LFC as well, we can't dictate a person on what to do but If I'm a DT, I would not tagged it.
Now, if those who trusted LFC think that the trust system has been abuse by him, they can just distrust him so he'll be out in the DT circle (just not sure if the trust system still works that way).