Police warn against improper leasing practices; court order mandated for repossession upon resistance

The Inspector General of Police (IGP) has issued a directive to all officers, highlighting concerns regarding the improper acquisition of vehicles and equipment through leasing companies and finance companies.

The Finance Leasing Act, No. 56 of 2000 details specific steps for repossessing leased equipment, including notifying authorities and obtaining court orders when necessary.

The IGP emphasizes that police must act lawfully and avoid involvement in illegal repossessions.

Legal rules state that regaining possession of property should happen without resistance from the current occupant. If they resist, the owner must seek a court order from the District Court to legally obtain possession.

Finance Leasing Act, No. 56 of 2000

27. A lessor who becomes entitled to recover possession of an equipment under this Act or under a provision of a finance Icase, may " -

(a) notify such right to the officer-in-charge of the police station for the area within which the equipment is found ;

(b) obtain the assistance of a police officer of that police station to prevent a breach of the peace in the exercise of that right: and

(c) recover possession of the equipment from the place where it is found, if possession could be obtained without resistance from the person in possession of the equipment or where it is not in the possession of any particular person, without resistance from amy person.

28. Where a lessor fails to recover possession of an equipment under section 27, or where a lessor has reasonable grounds to believe that it is impracticable to obtain possession under that section, the lessor may make an application to the District Court within whose jurisdiction the linance lease had been entered into, for an order of possession of the equipment.

While these regulations apply to leasing agreements under the Finance Leasing Act (2000), they are distinct from hire purchase agreements governed by the Consumer Credit Act (1982).


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