Sumedha Amarasinghe, the Deputy Secretary of the Association of Leasing and Debt Instalment Payers, has highlighted a significant issue with electronic card payments in a recent media disclosure.
Amarasinghe noted that some institutions deduct an additional 1% to 5% from customers when they pay with an electronic card. This practice is an issue, as customers already pay an annual fee for the card facility and should not be charged an additional amount over the value of the product.
In the same disclosure, Amarasinghe also raised concerns about the process of granting loans through social media.
"Despite numerous reports to the central bank, there has been no response, leading to suspicions that central bank officials may be benefiting from these institutions," Amarasinghe said.
He emphasized that providing online loans is illegal and criticized the practice of loan recovery through phone calls to family members and friends of borrowers.
The Association advises people who have taken online loans that they are under no obligation to repay these loans, although they may choose to do so.