CB injustice to vehicle leaseholders

A vehicle leaseholder, Mr. X, whose only livelihood is his single taxi business, is being treated unjustly by the Central Bank (CB). He is not alone in this. There are others, too, in a similar situation. All activities of The Finance Company (TFC) have been shut down and only a small office is operating, just to collect the lease payments of vehicle leaseholders. The Central Bank is investigating TFC, and they say the matter is in the courts, and it will be a long time before a resolution is reached.

Meanwhile, all assets of TFC are frozen and in the hands of the CB, including the Record Books of the vehicles of the leaseholders. During the ongoing pandemic of 2020, and the months-long shutdown, from about March 2020, Mr. X and others like him, were unable to earn a living with their taxis, but were still compelled to pay the monthly lease for their vehicle to their finance companies. While the companies gave them a little relief in accepting delayed payments, in small instalments, the accumulating debt is now getting too much to bear for the leaseholder. Mr X has a current debt with TFC of about Rs. 800,000.

Finding it difficult to continue, Mr. X decided to sell his vehicle, settle the remainder of his lease payment in full, and keep a small amount for the urgent current daily needs of himself and his family. The reputed company, from whom he bought his vehicle brand new, three years ago, undertook to handle the sale. They very quickly found a buyer who was prepared to pay the amount, asked for by Mr. X, in ready cash. With that amount of cash, he would have paid off the whole of his remaining debt to TFC, the exact amount being what they had indicated in a letter to him, and he would have had a small amount in hand to help him out with his immediate living needs.

But, in the final stages of the deal, all the parties concerned learnt that the original vehicle Record Book was with the CB, and they would not release it since the matter was in the courts. The buyer withdrew from the sale and now Mr. X realizes that he will never be able to sell his vehicle until the CB completes its investigations of TFC. He will have to continue paying the monthly amount to TFC. and also pay off the accumulated amount he owes.

One fails to understand why the CB cannot consider the funds retrieved from the sale of Mr. X’s car as an ASSET of TFC, and release his vehicle Record Book. Stating that everything is now in process with the courts, is a lame excuse. If the TFC, the CB and the Courts really cared about the vehicle leaseholders who make a difficult living trying to run their taxi services in these pandemic times, then some solution could be reached to this problem. But it seems they don’t care. If this is not an injustice, then what is it?

ROBERT CRUSZ

Colombo 5