Jun 13, 2020

Legal action against heavy handed leasing firms

Acting Inspector General of Police Chandana Wickramaratne hsa informed all Police Stations to first inquire  into complaints by leasing firms , pertaining to seizing vehicles that have defaulted on monthly premiums, whether they have been seized during the government declared grace period, prior to recording complaints.

The Acting IGP has informed the Police to record complaints of vehicles being seized, and ordered for action to be taken under the Criminal Code, if vehicles are seized during the relief period granted by the government to pay premiums. 

All Police OICs were informed to take action against leasing firms and financial institutions under the Criminal Code that lodge complaints with Police Stations after seizing vehicles. 

The Police said leasing and financial firms have disregarded the grace period issued by the government due to CIVIC-19 and have been actively seizing vehicles for failure to settle premiums.

Recovery of lease installments for three-wheeler owners has been suspended for six months under a concession granted by the government to groups affected by the COVID-19 pandemic, President's Media Unit reported.

The circular was issued on March 23 with the signature of the Secretary to the President.

Accordingly, the President points out that the acquisition of vehicles for not paying the loan installment violates the government order.

The President has also instructed the Police not to allow the vehicles to be seized on none-payment of lease, the President's Media Unit said.

Meanwhile, Minister Mahinda Amaraweera stated that a Cabinet meeting will be held to discuss the action to be taken against the leasing companies.