Incorrect loan record

In 2003, ABN Amro approved my personal loan for Rp 30 million over 24 months. Every month I paid the approximately Rp 1.75 million installment on time.

By April 2005, the entire 24 installments had been paid in full. However, since then, an ABN debt collector has called me many times and insisted that there is an outstanding balance of approximately Rp 500,000. I gave all the transfer evidence to the collector, but the collector insists that I must pay the recorded outstanding.

Finally in Aug. 10, I received a detail statement from ABN Amro from the collector. Upon further review of the said statement, I noticed that ABN had recorded my loan as being disbursed on March 27, 2003, but in fact I opened the account and withdrew the loan money at ABN Amro BEJ branch on April 14, 2003 (as per withdrawn slip from ABN).

It's amazing that ABN recorded and recognized my loan 18 days before any transactions or loan withdrawal had taken place. I do not know what basis and what accounting principle was used by ABN. However, based all accounting principles, the recognition of sale or receivables must be based on transfer of title, or in the case of a bank loan, on the actual date the loan was disbursed to a customer, otherwise ABN has recorded fictitious transactions.

My case is very simple: incorrect recording of date. However, ABN must recognize that this practice is prohibited and violates accounting principles (and I believe this practice is prohibited under central bank regulations) by doing window dressing on the financial statement.

Just imagine if a US$1 million loan was approved by ABN and the customer did not withdraw the loan, then by the end of March 2003, the assets reported by ABN to Bank Indonesia would be overstated by $1 million.

A Customer, Account # 306115033033, Jakarta