Police ordered to pursue legal action over forcible seizure of defaulted leased assets

28 December 2022 02:56 am - 9 - {{hitsCtrl.values.hits}}

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Companies told to obtain Court order to recover possessions
IGP says disciplinary action will be taken against police officers who disobey instructions

The Inspector General of Police (IGP) has instructed police officers to investigate and pursue necessary legal action over complaints on attempts to forcibly seize vehicles and other assets by finance and leasing firms over unpaid loan and lease installments.

In a circular issued on December 21, IGP Chandana D. Wickramaratne stressed that companies in such instances must file a case before a District Court to obtain an order to recover the possession as stipulated under 27th and 28th Sections of the Lease Financing Act No. 56 of 2000.

Although a similar circular was issued last year, concerns have been raised over the higher number of incidents reported with regard to forceful acquisition of vehicles and the failure of the police officers to act on such complaints lodged by vehicle owners.

The IGP stated that strict disciplinary actions would be taken against police officers who disobey the instructions.
The circular was issued following a meeting with the IGP and representatives of Association of Leasing and Debt Installment Payers on December 15.

The Association of Leasing and Debt Installment Payers President Asanka Ruwan Pothupitiya accused finance and leasing firms on unleashing fear and physical violence on their customers through their agents, in the guise of ‘seizures.’ He highlighted that most recently a pregnant woman was assaulted by seizures of a leading finance company in Polgahawela when attempting to forcefully seize a vehicle over payment arrears.

Although clear rules have been set out in the Lease Financing Act No. 56 of 2000 on acquiring vehicles and other assets taken on lease, Pothupitiya pointed out that finance and leasing companies are not acting in line with these rules.
Moving forward, he stressed that directors and other officials of such finance and leasing companies along with their agents would be taken to courts by the Association of Leasing and Debt Installment Payers if these companies continue to act outside the law.

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Comments - 9

Kumar Wednesday, 28 December 2022 07:49 AM

leasing is like renting a vehicle. When the final payment is made the title goes to the owner. Has the law changed?

Sunil Wednesday, 28 December 2022 08:04 AM

These leasing companies are nothing but criminals. The process of seizing should be done away for good and fresh laws must be initiated to repossess these vehicles, if necessary, only by a court order. Authorities in charge are not doing anything about this because they are in the pay roll of these obnoxious companies.

W L Wednesday, 28 December 2022 08:25 AM

In Britain the situation is much worse than in Sri Lanka. The people employed in Britain to recover unpaid money are very tall , hefty , body tattooed thugs with menacing look and threatening behaviour. These private thugs simply barge into your house and say they have got court order to recover assets but before you look at the court papers they are removing your things from your house and putting them in their vans. They look so intense you can’t argue with them. If you call the police , they will find excuses not to come. This is the picture in Britain you don’t hear about .

Gayan Wednesday, 28 December 2022 11:30 AM

To avoid this customer should either pay the overdue instalment or hand over the vehicle to the LC. It is unethical to use the vehicle and not pay your dues.

Simple living Wednesday, 28 December 2022 12:14 PM

@WL - One should not live and enjoy on other peoples hard earnings. If one leases then lease money should be paid. Other wise do not lease nor borrow for a high living. Live within your means. Learn to cut your court according to the cloth available.

Lihini Weerasinghe, York Wednesday, 28 December 2022 01:02 PM

W L : that only happens among criminals. There are strict rules and laws for official dept collectors.

Anton , went to university in uk Wednesday, 28 December 2022 01:16 PM

@ Simple Living /:: You are missing the point altogether even a child would have understood what the comment is about. You are either “ a head problem” or your left school too early . There is something not normal about you !!!!!

suriya Wednesday, 28 December 2022 04:42 PM

Laws to protect the defaulters and the police is asked to protect the violator. How can business survive like this when the courts in this country will take several years with cases dragging on forever

ponnusamy ravindean Wednesday, 28 December 2022 06:51 PM

Those who take on lease have an obligation to pay the instalments. if for some reason unable to pay they must return the vehicle and come to a settlement with the company to get their capital back. The ownership is with the company until the final instalment is paid. If the lessee has any complaints against the company it is they who have to seek the assistance of the court and not the company... The law must be changed accordingly to the principle that the leasing company is the owner until last instalment is paid. other the company had to charge extra money for legal expenses when signing the lease and refund if no defaults

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Police ordered to pursue legal action over forcible seizure of defaulted leased assets

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