Stringent action against banks, leasing companies levying late interest, vehicle seizure: NMCRP

The National Movement for Consumer Rights Protection (NMCRP) said some banks and financial institutions have continued to ignore the Central Bank circular and insisted their customers to pay the interest. 

While reiterating the NMCRP President Ranjith Withanage said that despite the circulars have been sent by the Financial Control Division of the Central Bank (CB), the banks and leasing companies having ignored the circular and kept sending reminders to their customers forcing them to pay late interest, including charges during the moratorium period and in the meantime, several banks and leasing companies have seized the vehicles of some customers who have bought them under lease agreement.

The CB has issued several circulars in May to Banks and leasing companies as people have been severely affected by the COVID pandemic, he said.

The circulars were issued on the subject of charging interest and leasing of vehicles from the customers until August 31, 2021, and for other concessions, he said.

However, no legal action has been taken against the companies and banks that violated the CB circulars. As a result, the customers who have bought the vehicles under leasing agreement are in a desperate situation.

The NMCRP said they strongly condemn the CB which keeps quiet when the customers are left helpless and took no action when the banks and financial institutions continue to violate its directives, Mr. Withanage  said.

Therefore, we urge the CB to remind the banks and companies about the law that is in force and to act accordingly, he added. (Chaturanga Samarawickrama)