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.