Vehicles cannot be seized by leasing companies for failing to pay

President Gotabaya Rajapaksa has ordered the Police to stop the method adopted by leasing companies to seize vehicles of those who had failed to pay their loan instalments as it is unlawful.

“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 Acting IGP Chandana Wickremaratne not to entertain complaints received from leasing companies after vehicles are seized,” the President’s Office said.

Under the package of concessions offered to the public affected with the spread of COVID -19, recovery of leasing instalments 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, the President’s Office said.

In this context, seizing of vehicles for not paying the instalment is a breach of the Government order. The President instructed the Police not to allow vehicles to be seized on the grounds of non-payment of instalments. (Colombo Gazette)