COLOMBO – Law enforcement authorities have issued a stern warning to vehicle leasing and finance companies across the country, cautioning them against the increasingly common practice of seizing vehicles through “thug-like” recovery tactics.
In an official statement released today, police high command noted a surge in public complaints regarding the aggressive and often unlawful methods employed by recovery agents. Authorities are now mandating that all financial institutions strictly adhere to legal protocols when reclaiming vehicles from borrowers who have defaulted on their payment schedules.
The directive follows several high-profile incidents where recovery teams allegedly used intimidation, coercion, and unauthorized physical force to forcibly take possession of vehicles from public roads and private residences. Police emphasized that these actions constitute criminal offenses, including unlawful restraint and intimidation, regardless of any contractual agreements between the lender and the borrower.
“The law is clear: recovery of property must be conducted through legal channels,” a senior police spokesperson stated. “Financial institutions do not have the authority to bypass the judicial system by hiring private individuals to forcibly seize assets. Any attempt to carry out such actions without a court order or proper legal oversight will be met with strict legal consequences against both the recovery agents and the leasing firms that employ them.”
Under current regulations, if a borrower defaults on a lease agreement, the finance company must seek a court order or follow the established legal procedure for the repossession of collateral. The police have signaled that they will be increasing patrols and stepping up investigations into “recovery squads” that operate outside the purview of the law.
Legal experts have long argued that the “vigilante” nature of some recovery operations creates public safety risks and places immense psychological strain on citizens. Consumers have frequently reported that these agents do not identify themselves properly, often posing as officials while using unmarked vehicles to surround and threaten debtors.
The Police Department is now urging citizens who encounter such aggressive recovery tactics to contact the nearest police station immediately or utilize emergency hotlines. Furthermore, victims are encouraged to record such encounters if it is safe to do so, providing authorities with necessary evidence to prosecute those involved in illicit repossession practices.
Finance companies have been put on notice that they bear direct responsibility for the conduct of their recovery agents. The warning serves as a pivot point for the industry, which has faced mounting pressure from civil rights groups to reform its collection practices. As the investigation continues, authorities say they are prepared to file charges against any firm found to be orchestrating, facilitating, or ignoring the use of intimidation tactics by their staff or third-party contractors.
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