Opposition Leader Sajith Premadasa says Sri Lankans who once dreamed of purchasing a Toyota Vitz for Rs. 1.2 million are now struggling to settle their vehicle leasing installments, with some allegedly facing intimidation and physical assault at the hands of vehicle repossession agents, commonly known as ‘seizers’.
Speaking during a meeting with representatives of the Association of Leasing and Loan Instalment Payers at the Office of the Leader of the Opposition today (01), Premadasa called for an immediate end to the alleged forcible seizure of vehicles from individuals experiencing financial difficulties.
He said that although people obtain loans and leasing facilities to purchase vehicles and other assets to improve their livelihoods, financial difficulties can sometimes prevent them from settling installments on time.
The Opposition Leader stressed that borrowers have a responsibility to repay their debts, but argued that financial institutions should follow established legal procedures to recover outstanding payments rather than resorting to intimidation or violence.
Premadasa alleged that vehicle repossession agents have once again begun forcibly seizing vehicles on public roads, despite previous interventions to prevent such practices.
He claimed that following concerns raised in the past, Police had taken steps under the RTN 213 agreement to prevent forcible vehicle repossessions.
However, he alleged that the practice had now resumed, with law enforcement authorities failing to respond adequately.
The Opposition Leader also criticised the Central Bank, alleging that it had failed to adequately regulate financial institutions employing repossession agents to recover assets through force.
Referring to the Finance Leasing Act, No. 56 of 2000, Premadasa said legal mechanisms were available for financial institutions to recover outstanding payments, including through the courts.
He argued that permitting the seizure of assets outside established legal procedures was unacceptable and questioned the role of Police in facilitating such activities.
Premadasa further pointed out that borrowers facing repayment difficulties could explore alternatives, including restructuring their loan agreements, rather than being subjected to forcible vehicle repossession.
He called for the elimination of what he described as a robbery-like repossession system, insisting that outstanding debts should be recovered fairly through formal legal procedures.
The Opposition Leader also urged Police not to side with repossession agents at the expense of financially distressed borrowers, stressing the need to protect the public while ensuring that lawful debt recovery mechanisms are followed. (Newswire)