Incorrect loan record

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(as per withdrawn slip from ABN).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