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Leasing firms accused of unlawful repossession and assaulting customers

20 Oct 2022

  • Lessors’ association claims companies violating CBSL moratorium
  BY Dinitha Rathnayake    Despite the fact that the Central Bank of Sri Lanka (CBSL) has instructed leasing companies, under Circular No. 01 of 2022 submitted on 20 July 2022, to cease the acquisition of vehicles until 31 December 2022, it has been claimed that leasing companies are acting arbitrarily in violation of the Finance Leasing Act No. 56 of 2000, by assaulting customers and forcefully repossessing vehicles.  The Joint Association of Leasing and Debt Instalment Payers claimed that 20 vehicles were seized within one week. Association Secretary Asanka Ruwan Pothupitiya, speaking to The Morning, said that the association filed six lawsuits on Monday (17) in the Colombo District Court, and another four yesterday (18). “Leasing companies are using their powers to arbitrarily seize people’s vehicles and properties. Such an action was committed against a pregnant woman as well. The leasing companies are not following the debt moratorium granted by the CBSL, but the Government continues to be silent on the matter.” He further claimed that there are over 500,000 vehicles in operation without revenue licences, because leasing companies are not providing people with a copy of the certificate of registration and the insurance certificate, both of which are required to obtain the revenue licence.  “They are holding people hostage by claiming that they will only release the certificate of registration if they deposit a specified sum of money. This is an embarrassment. Furthermore, in the event of an accident, there is no way to repair such vehicles. Garages are packed with vehicles. The main reason for this situation is the fact that leasing companies are colluding with insurance companies,” he alleged.


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