If individuals who have purchased property, using loans from banks or financial institutions, fail to repay those loans, there is a risk of banks and financial institutions collapsing, Secretary of the All Island Property Recovery Professionals Association, Priyantha Liyanage, said yesterday (27).
Speaking at a media briefing at NM Perera Centre, in Colombo, he said that some institutions have already collapsed in the country.
Liyanage warned that the collapse of banks, or financial institutions, would not only affect the institutions themselves but also leave those who have deposited money in those banks, stranded and helpless.
He said his Association is legally authorised to repossess vehicles or properties in cases where leasing installments, or loan repayments, are not made. The Association carries out these tasks lawfully to protect the country’s financial system. Liyanage added that misinformation spread by some individuals, who are not lawyers, suggesting that people should avoid paying leasing installments, is misleading. The Bar Association and the Registrar of the Supreme Court have formally informed the Association in writing that such individuals have no legal authority.
Liyanage explained that when a vehicle, or property, is purchased through a loan, or lease, from any financial institution, the true ownership documents remain with the institution. If the borrower defaults, the institution has the legal right to repossess the property.
He noted that the Association recruits its members after verifying several documents, including village Grama Niladhari and police certificates. Incidents of assaults, or violence, during property repossessions, as circulated on social media, are extremely rare, he said.
Members are instructed to record every repossession on mobile phones, and if any other properties are damaged during the process, the Association takes appropriate action.
Liyanage stressed that if loan defaulters cause financial institutions to collapse, the government, too, would face difficulties. Therefore, his Association is the only legally authorised body in Sri Lanka to repossess property from those who fail to repay loans and to return them to the respective financial institutions lawfully.
He added that those unable to repay loans can obtain guidance and assistance, free of charge, by contacting 0704660660.
By Chaminda Silva
from The Island https://ift.tt/erN5sbK
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