The Australian Securities & Investments Commission announced that the Federal Court found Diamond Wheels Pty Ltd, trading as Lansvale Motor Group, and Keo Automotive Pty Ltd provided car loans to consumers without an Australian Credit Licence and charged unlawful and excessive interest. In proceedings brought by ASIC, the Court also found Keo Automotive director and former Diamond Wheels director Ken Keomanivong liable for his involvement, after finding he played a central role in setting up the lending businesses and arranging hundreds of loans. Neither company had ever held an Australian Credit Licence or been authorised to engage in credit activities, despite providing car loans between 2014 and 2024. ASIC’s case against Diamond Wheels covered conduct from September 2018 to December 2019, during which it was the credit provider under 205 contracts and received almost 6,000 unlawful payments. From January 2020 to August 2023, Keo Automotive provided credit under 119 loan contracts and, between December 2019 and April 2024, received almost 18,000 unlawful payments under those contracts and many of Diamond Wheels’ contracts. ASIC alleged that, in many cases, consumers were charged almost double the lawful amount of interest. The companies and Mr Keomanivong admitted the contraventions after 19 months of litigation. ASIC said this was its first civil proceeding targeting unlicensed credit activities by a car dealership. A further hearing on penalty and other relief is scheduled for 20 August 2026.
Australian Securities & Investments Commission2026-06-09
Australian Securities & Investments Commission secures Federal Court findings against car dealers and director for unlicensed lending and unlawful interest charges
The Australian Securities & Investments Commission announced that the Federal Court found Diamond Wheels Pty Ltd (trading as Lansvale Motor Group) and Keo Automotive Pty Ltd provided car loans without an Australian Credit Licence and charged unlawful, excessive interest, with director Ken Keomanivong held liable. The Court found the firms issued more than 300 loans between 2014 and 2024, receiving tens of thousands of dollars in unlawful payments, with consumers often charged almost double the lawful interest. This is ASIC’s first civil proceeding against unlicensed credit activities by a car dealership, with a further hearing on penalties and other relief scheduled.