Leasing companies not audited, Fin. Min. to blame: Leasing and Debt Instalment Payers

The Joint Association of Leasing and Debt Instalment Payers yesterday claimed that the leasing and finance companies continue to seize vehicles and property arbitrarily, as Government remains deaf and blind to their activities.

Despite the Central Bank circular No.9 of 2021 issued on 6 October to restructure the credit facilities, the Association charged that the leasing companies are using their power to seize vehicles and property forcefully. One incident was reported in Gokarella recently.

“Leasing companies do not operate as per Central Bank directives and grace period granted, but the Government is silent, too,” Joint Association of Leasing and Debt Instalment Payers General Secretary Asanka Ruwan Pothupitiya told media yesterday.

He challenged Central Bank Governor Ajith Nivard Cabraal to reveal if they have conducted audits on these financial institutions during the past six months.

“The auditors will go and fill their pockets and come back to the Central Bank and let these leasing companies operate as they want. I urge Cabraal to stand up for the helpless people in this country who are still unable to pay their lease instalments, without protecting their cronies,” he said

He also asserted that over 500,000 vehicles on the roads currently do not have revenue licences, as the leasing companies do not provide a copy of the book and the insurance certificate required to obtain it.

“People are being held hostage and they say they will give a copy of the book if they debit a certain amount. This is inhumane given the economic hardships the people go through. The other special thing is that there is no way to repair a vehicle if it meets with an accident. Vehicles are piling up in the garages without being repaired. The main reason for this is the bond between the insurance and leasing companies,” he explained.

Pothupitiya said the economy is bankrupt although the Finance Minister brags that the economy is being strengthened. 

“If we continue like this, we will have to surround the Central Bank and the leasing institutions. All income-generating avenues are hindered, and therefore, concessions must be given to lease and loan payers. But leasing companies threaten consumers and continue to seize vehicles and properties,” he added.

Joint Association of Leasing and Debt Instalment Payers Media Secretary Sumedha Amarasinghe said if the Government continue to be blind, deaf and mum they will gather people on the roads.

“Today people are helpless due to the State of the economy with high debt burden, skyrocketing cost of living, and all income-generating avenues being blocked following the pandemic,” he added.

Positing that the Finance Minister is unaware of the state of the economy, he said: “The Government does not think of the people of this country. Leasing and financial institutions are not properly audited. It should be properly audited. The Government should intervene in this.”

Amarasinghe also charged that the vehicle prices are being artificially increased to take advantage of the import restrictions. 

“However, leasing companies continue to give them leasing and loans. This is not correct. These should be regulated and the Government should be responsible. We do not see in any way that this Government or the Finance Minister is giving proper relief to the people,” he claimed.