Stop unlawful activities of leasing companies: Prez directs Police

12 June 2020 08:27 pm - 23     - {{hitsCtrl.values.hits}}

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As the method adopted by the leasing companies to seize vehicles of those who had failed to pay their loan installments is unlawful, President Gotabaya Rajapaksa has ordered the Police that no room should be left to continue this practice, the President’s Media Division said.

“Leasing companies do not inform the Police prior to such seizing. They lodge complaints only after taking over the vehicle. This kind of forceful action sometimes leads to grave violence. As such, the President instructed the Acting IGP Chandana Wickremaratne not to entertain complaints received from the leasing companies after seizing,” it said.

Under the package of concessions offered to the public affected with the spread of COVID -19, recovery of leasing installments from three-wheeler owners was suspended for 6 months.

It was clearly stated in the Section 2 of the Circular 16/2020 issued on March 23 under the signature of the Secretary to the President.

In this context, seizing of vehicles for not paying the installment is a breach of the Government order. President informed the Police not to allow vehicles to be seized on the ground of non-payment of installments.

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  Comments - 23

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  • Mala Friday, 12 June 2020 08:33 PM

    HON. PRESIDENT TOO LATE.

    Sa Saturday, 13 June 2020 03:18 PM

    Better ate than never

    CITIZEN Friday, 12 June 2020 10:02 PM

    WHAT ACTION WILL THE GOVT TAKE AGAINST THE LEASING COMPANY

    Janaka Friday, 12 June 2020 10:46 PM

    What action will the government take this unregistered leasing company the owner should be punshied and given life in prison and must ask the leasing company to pay all the funeral expenses and life time payment to the family.

    Francis Friday, 12 June 2020 11:23 PM

    Leasing Or investments companies are suckers of poor man’s blood.

    CJ Saturday, 13 June 2020 10:55 PM

    Why do you take lease if you can not pay it back....its very close to vising a casino to get rich

    Disgusted elderly Citizen Saturday, 13 June 2020 07:30 AM

    It is always the case in our country since decades,governments/authorities / officials never foresee problems or dangers to come. Possible happenings are not aware of. Eyes are open only when something grave happens. Then comes action -delayed action.By that time severe damage has already happened. Then soon it will be forgotten. Circulars issued will go to dust bins. Current eg. wild elephants encroach villages destroy property and killing people. No action.Leaders are silent. Similar to Trump's response.Very sad.

    K.L Pathirana Saturday, 13 June 2020 07:53 AM

    What does the government have to do with a private contract ? Nothing !! The contract for lease of a vehicle is done by the lessor and lessee, the contract will stipulate the guidelines not the government, If the government wants to pay the lease for the next six months they can make a direct payment to the leasing Co., don't try to make the Banana Republic to a rotten banana. I feel sorry for the unexpected situation of Covid-19, but we need to learn how to live within our means.

    Sen Saturday, 13 June 2020 07:53 AM

    Now bankrupt, ETI amd SFS find ways to coverup pay back to depositors, by connivance with Central bank officers paying millions as bribe

    Adwani Saturday, 13 June 2020 07:58 AM

    This reminds me of Tele Drama series "Kopi Kade" Poli Mudalali's comments - Gunna Kota Mahatya Denna Kota Poliya. Before approaching for financing, the applicant must look for Micro Finance Loan not leasing. All three wheelers loan should be financed by the Government under helping the poor scheme not by leasing companies.

    Mahesh Saturday, 13 June 2020 07:59 AM

    Just talking no proper action... What he says is just a suggestion to police. What should be done is ammend the laws immediately. Make the grace period 6 months. person who has taken the lease should hand over the vehicle before 6 months , failure to do so means he should pay a daily fine.this fine should go to government not lease company. Leasing company should check last 2 years monthly earnings not 3 months prior to lease approval. should not give more than 25-30% leasing. If leasing companies use thugs to take the vehicle back, license will be cancelled. Unlicensed companies cannot issue loans or lease facility. If someone operates such a business , he will be sentenced to 10y in prison and his assets wll be taken by government. Simple thing to do, if he has backbone...

    DillonDP Saturday, 13 June 2020 08:01 AM

    It's is for registered companies only. Anyway he is dead.

    SKM Saturday, 13 June 2020 08:46 AM

    If leasing companies (registered) or banks do not recover monthly lease installments, how can they pay monthly interest to their depositors? Government always neglect the plight of the depositors

    Andrew Silva Saturday, 13 June 2020 11:10 AM

    Why is our Boss so much interested in this leasing company? Looks like guilty conscience pricks the mind.

    Kingsley Wijesinhe Saturday, 13 June 2020 11:31 AM

    All this time, didn't the police know that it is illegal for a leasing company to send thugs to seize vehicles when lease payments are overdue? Does the President have to tell them everything? The truth is that the police are well "looked after" by crooked leasing companies, so they turn a blind eye.

    TONY Saturday, 13 June 2020 11:42 AM

    YOU ARE UNLAWFUL

    John frazer Saturday, 13 June 2020 11:45 AM

    Another whitewash statement They are run by the supporters of the politicians

    Pol Buruwa Saturday, 13 June 2020 12:39 PM

    As the governor of central bank explained certain financing companies cant be supervised, It is a problem with the act. I hope next parliament would amend to cover all money lending institutions.

    Dhaya Saturday, 13 June 2020 01:45 PM

    Very Good move. There should be a ceiling on interest rates, these leasing companies are sucking the poor man's blood. Banks like, Sanasa should give more credit for small-time business.

    Sen Saturday, 13 June 2020 03:40 PM

    News item said,from the very beginning,ETI/SFS functioned against the CB rules, so why not cancelled its license then, why repeatedly advertised those companies as CB authorised by central bank itself,so many people now suffer due to whose incompetence,whose ignorance ITS central bank

    dara Sunday, 14 June 2020 07:25 AM

    I would like to add misguided by CB, also

    GHarry Saturday, 13 June 2020 11:27 PM

    Well said sir.

    Dee Sunday, 14 June 2020 05:25 PM

    When all registered institution rejects leasing due to ones poor repayment capacity, these people give. Some cannot even manage the 1st instalment, leave alone 20-30% down payment. And when reality comes into play- the lender is at fault.


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