**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**FORM      10-Q**

**For      the quarterly period ended September 30, 2007**

**001-33257**

**White      River Capital, Inc.**

| **Indiana**                                                                                  | **35-1908796**                                      |
|----------------------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization) | (I.R.S.                Employer Identification No.) |

**1445      Brookville Way, Suite I**

**Indianapolis,      Indiana 46239**

**(317)      806-2166**

| Large                accelerated filer o  | Accelerated                filer o  | Non-accelerated                filer x  |
|-----------------------------------------------------|-----------------------------------------------|---------------------------------------------------|

----

**WHITE      RIVER CAPITAL, INC.**

**FORM      10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2007**

----

**-      INDEX -**

|                              |                                           |                                                                                                                                                                                          | **PAGE** |
|-----------------------------------|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **PART                I.**   | **FINANCIAL                INFORMATION**  |                                                                                                                                                                                          |
|                              | **Item                1.**                | **Financial                Statements**                                                                                                                                                  |     |
|                              |                                           | **Unaudited                Condensed Consolidated Balance Sheets as of September 30, 2007 and                December 31, 2006**                                                         | 1   |
|                              |                                           | **Unaudited                Condensed Consolidated Statements of Operations for the quarters                and nine                months ended September 30, 2007 and 2006**            | 2   |
|                              |                                           | **Unaudited                Condensed Consolidated Statements of Cash Flows for the nine months                ended                September 30, 2007 and 2006**                         |     |
|                              |                                           | **Unaudited                Condensed Consolidated Statements of Comprehensive Income for the                quarters                and nine months ended September 30, 2007 and 2006**  |     |
|                              |                                           | **Notes                to Unaudited Condensed Consolidated Financial                Statements**                                                                                         | 5   |
|                              | **Item                2.**                | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations**                                                            | 18  |
|                              | **Item                3.**                | **Quantitative                and Qualitative Disclosures about Market Risk**                                                                                                            | 37  |
|                              | **Item                4.**                | **Controls                and Procedures**                                                                                                                                               | 38  |
|                              |                                           |                                                                                                                                                                                          |     |
| **PART                II.**  | **OTHER                INFORMATION**      |                                                                                                                                                                                          |
|                              | **Item                6.**                | **Exhibits**                                                                                                                                                                             | 39  |
|                              |                                           |                                                                                                                                                                                          |     |
| **SIGNATURES**               |                                           | 40                                                                                                                                                                                       |

----

**PART      I  FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS.**

**WHITE      RIVER CAPITAL, INC. AND      SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

**(Dollars      in thousands)**

| **ASSETS**                                                                                                                                                                                                                                         |   | **September                  30, 2007** |    |   | **December                  31, 2006** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|--------|----------------------------------------|--------|
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |
| Cash                and cash equivalents                                                                                                                                                                                                           |   | $                                       | 7,028   |   |                                   | $      | 6,958 |   |
| Restricted                cash                                                                                                                                                                                                                     |   |                                    | 5,865   |   |                                   |   | 13,618 |   |
| Securitized                finance receivables—net                                                                                                                                                                                           |   |                                    | 6,417   |   |                                   |   | 27,447 |   |
| Finance                receivables—net                                                                                                                                                                                                       |   |                                    | 80,906  |   |                                   |   | 78,693 |   |
| Beneficial                interest in Master Trust                                                                                                                                                                                                 |   |                                    | 10,844  |   |                                   |   | 23,601 |   |
| Goodwill                                                                                                                                                                                                                                           |   |                                    | 34,698  |   |                                   |   | 34,698 |   |
| Deferred                tax assets—net                                                                                                                                                                                                       |   |                                    | 35,843  |   |                                   |   | 38,189 |   |
| Other                assets                                                                                                                                                                                                                        |   |                                    | 1,817   |   |                                   |   | 2,220 |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| TOTAL                                                                                                                                                                                                                                              |   | $                                       | 183,418 |   |                                   | $      | 225,424 |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                      |   |                                    |    |   |                                   |   |   |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| LIABILITIES:                                                                                                                                                                                                                                       |   |                                    |    |   |                                   |   |   |   |
| Collateralized                financings                                                                                                                                                                                                           |   | $                                       | 7,485   |   |                                   | $      | 32,368 |   |
| Line                of credit                                                                                                                                                                                                                      |   |                                    | 44,000  |   |                                   |   | 49,500 |   |
| Secured                note payable                                                                                                                                                                                                                |   |                                    | 10,313  |   |                                   |   | 13,125 |   |
| Subordinated                debentures                                                                                                                                                                                                             |   |                                    | -       |   |                                   |   | 7,700 |   |
| Accrued                interest                                                                                                                                                                                                                    |   |                                    | 618     |   |                                   |   | 1,169 |   |
| Amounts                due to Master Trust                                                                                                                                                                                                         |   |                                    | 4,833   |   |                                   |   | 8,400 |   |
| Creditor                notes payable                                                                                                                                                                                                              |   |                                    | 1,334   |   |                                   |   | 1,392 |   |
| Other                payables and accrued expenses                                                                                                                                                                                                 |   |                                    | 2,137   |   |                                   |   | 3,852 |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| Total                liabilities                                                                                                                                                                                                                   |   |                                    | 70,720  |   |                                   |   | 117,506 |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| SHAREHOLDERS’                EQUITY:                                                                                                                                                                                                         |   |                                    |    |   |                                   |   |   |   |
| Preferred                Stock, without par value, authorized 3,000,000 shares; none issued                and                outstanding                                                                                                          |   |                                    | -       |   |                                   |   | - |   |
| Common                Stock, without par value, authorized 20,000,000 shares; 3,842,287                and                3,813,155 issued and outstanding at September 30, 2007 and December                31,                2006, respectively |   |                                    | 179,885 |   |                                   |   | 179,594 |   |
| Warrants,                150,000 outstanding at September 30, 2007 and December 31,                2006                                                                                                                                            |   |                                    | 534     |   |                                   |   | 534 |   |
| Accumulated                other comprehensive income, net of taxes                                                                                                                                                                                |   |                                    | 6,065   |   |                                   |   | 11,107 |   |
| Accumulated                deficit                                                                                                                                                                                                                 |   |                                    | (73,786 | )      |                                   |   | (83,317 | ) |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| Total                shareholders’ equity                                                                                                                                                                                                    |   |                                    | 112,698 |   |                                   |   | 107,918 |   |
|                                                                                                                                                                                                                                               |   |                                    |    |   |                                   |   |   |   |
| TOTAL                                                                                                                                                                                                                                              |   | $                                       | 183,418 |   |                                   | $      | 225,424 |   |

----

**PART        I  FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND      SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

**(Dollars      in thousands, except per share amounts)**

|                                                                                                     |   | **Quarter                  Ended September 30,** |      |   | **Nine                  Months Ended September 30,** |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-----------|--------|------------------------------------------------------|--------|
|                                                                                                     |   | **2007**                                         |      |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
| INTEREST:                                                                                                |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |
| Interest                on receivables                                                                   |   | $                                                | 7,943     |   |                                                 | $      | 9,199 |   |   | $ | 24,229 |   |   | $ | 28,808 |   |
| Accretion                and other interest                                                              |   |                                             | 1,400     |   |                                                 |   | 8,129 |   |   |   | 12,683 |   |   |   | 11,536 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                     |   |                                             | 9,343     |   |                                                 |   | 17,328 |   |   |   | 36,912 |   |   |   | 40,344 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                          |   |                                             | (1,407    | )      |                                                 |   | (2,872 | ) |   |   | (4,945 | ) |   |   | (9,294 | ) |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                       |   |                                             | 7,936     |   |                                                 |   | 14,456 |   |   |   | 31,967 |   |   |   | 31,050 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                          |   |                                             | (1,480    | )      |                                                 |   | (20 | ) |   |   | (2,979 | ) |   |   | 365 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin after recovery (provision) for estimated credit                losses |   |                                             | 6,456     |   |                                                 |   | 14,436 |   |   |   | 28,988 |   |   |   | 31,415 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                     |   |                                             | (2,128    | )      |                                                 |   | (2,255 | ) |   |   | (6,280 | ) |   |   | (6,379 | ) |
| Third                party servicing expense                                                             |   |                                             | (99       | )      |                                                 |   | (373 | ) |   |   | (453 | ) |   |   | (1,552 | ) |
| Other                operating expenses                                                                  |   |                                             | (1,214    | )      |                                                 |   | (1,279 | ) |   |   | (4,032 | ) |   |   | (4,496 | ) |
| Bankruptcy                costs                                                                          |   |                                             | -         |   |                                                 |   | (18 | ) |   |   | (6 | ) |   |   | (150 | ) |
| Charge                to Master Trust—net                                                          |   |                                             | (540      | )      |                                                 |   | (5,587 | ) |   |   | (2,031 | ) |   |   | (13,587 | ) |
| Change                in fair market valuation of creditor notes payable                                 |   |                                             | (206      | )      |                                                 |   | - |   |   |   | (393 | ) |   |   | - |   |
| Loss                from extinguishment of debt                                                          |   |                                             | -         |   |                                                 |   | (1,341 | ) |   |   | - |   |   |   | (1,543 | ) |
| Gain                from deficiency sale and litigation settlement                                       |   |                                             | -         |   |                                                 |   | 4,334 |   |   |   | 22 |   |   |   | 8,043 |   |
| Other                income (expense)                                                                    |   |                                             | 23        |   |                                                 |   | (30 | ) |   |   | 97 |   |   |   | (70 | ) |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Total                other revenues (expenses)                                                           |   |                                             | (4,164    | )      |                                                 |   | (6,549 | ) |   |   | (13,076 | ) |   |   | (19,734 | ) |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                                |   |                                             | 2,292     |   |                                                 |   | 7,887 |   |   |   | 15,912 |   |   |   | 11,681 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                TAX BENEFIT (EXPENSE)                                                              |   |                                             | (801      | )      |                                                 |   | 248 |   |   |   | (5,750 | ) |   |   | 1,219 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME                                                                                |   | $                                                | 1,491     |   |                                                 | $      | 8,135 |   |   | $ | 10,162 |   |   | $ | 12,900 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (BASIC)                                                       |   | $                                                | 0.39      |   |                                                 | $      | 2.13 |   |   | $ | 2.65 |   |   | $ | 3.38 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (DILUTED)                                                     |   | $                                                | 0.38      |   |                                                 | $      | 2.09 |   |   | $ | 2.58 |   |   | $ | 3.33 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                |   |                                             | 3,842,287 |   |                                                 |   | 3,813,155 |   |   |   | 3,840,025 |   |   |   | 3,813,045 |   |
|                                                                                                     |   |                                             |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                              |   |                                             | 3,952,893 |   |                                                 |   | 3,900,930 |   |   |   | 3,946,429 |   |   |   | 3,876,177 |   |

----

**PART        I  FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(Dollars      in thousands)**

|                                                                                                                                                                                             |   | **Nine                Months Ended September 30,** |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|
|                                                                                                                                                                                             |   | **2007**                                           |    |   | **2006** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                             |   |                                               |    |   |   |   |
| Net                income                                                                                                                                                                        |   | $                                                  | 10,162  |   |   | $ | 12,900 |   |
| Adjustments                to reconcile net income to net cash provided by (used in) operating                activities:                                                                        |   |                                               |    |   |   |   |   |   |
| Accretion                of beneficial interest in Master Trust                                                                                                                                  |   |                                               | (12,242 | ) |   |   | (10,842 | ) |
| Provision                (recovery) for estimated credit losses                                                                                                                                  |   |                                               | 2,979   |   |   |   | (365 | ) |
| Amortization                and depreciation                                                                                                                                                     |   |                                               | 320     |   |   |   | 355 |   |
| Amortization                of discount and interest accrued on creditor notes payable                                                                                                           |   |                                               | 260     |   |   |   | 974 |   |
| Gain                from disposition of equipment                                                                                                                                                |   |                                               | (14     | ) |   |   | - |   |
| Loss                from extinguishment of debt                                                                                                                                                  |   |                                               | -       |   |   |   | 1,543 |   |
| Deferred                income taxes                                                                                                                                                             |   |                                               | 5,607   |   |   |   | (1,340 | ) |
| Change                in fair value of creditor notes payable                                                                                                                                    |   |                                               | 393     |   |   |   | - |   |
| Stock                based compensation expense                                                                                                                                                  |   |                                               | 291     |   |   |   | 269 |   |
| Changes                in assets and liabilities:                                                                                                                                                |   |                                               |    |   |   |   |   |   |
| Accrued                interest receivable and other assets                                                                                                                                      |   |                                               | 379     |   |   |   | 1,595 |   |
| Amounts                due to Master Trust                                                                                                                                                       |   |                                               | (3,567  | ) |   |   | 477 |   |
| Payment                of creditor notes payable accrued interest                                                                                                                                |   |                                               | (137    | ) |   |   | (775 | ) |
| Other                payables and accrued expenses                                                                                                                                               |   |                                               | (2,174  | ) |   |   | 1,182 |   |
| Net                cash provided by operating activities                                                                                                                                         |   |                                               | 2,257   |   |   |   | 5,973 |   |
|                                                                                                                                                                                             |   |                                               |    |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                             |   |                                               |    |   |   |   |   |   |
| Payment                of Coastal Credit purchase holdback                                                                                                                                       |   |                                               | -       |   |   |   | (3,840 | ) |
| Principal                collections and recoveries on securitized finance                receivables                                                                                            |   |                                               | 21,942  |   |   |   | 70,350 |   |
| Purchase                of finance receivables                                                                                                                                                   |   |                                               | (43,208 | ) |   |   | (49,497 | ) |
| Collections                on finance receivables                                                                                                                                                |   |                                               | 35,872  |   |   |   | 37,724 |   |
| Principal                collections and recoveries on receivables held for                investment                                                                                            |   |                                               | 1,062   |   |   |   | 2,652 |   |
| Collections                on beneficial interest in Master Trust                                                                                                                                |   |                                               | 17,122  |   |   |   | 2,784 |   |
| Change                in restricted cash                                                                                                                                                         |   |                                               | 7,753   |   |   |   | 7,183 |   |
| Proceeds                from sale of equipment                                                                                                                                                   |   |                                               | 14      |   |   |   | - |   |
| Capital                expenditures                                                                                                                                                              |   |                                               | (188    | ) |   |   | (168 | ) |
| Net                cash provided by investing activities                                                                                                                                         |   |                                               | 40,369  |   |   |   | 67,188 |   |
|                                                                                                                                                                                             |   |                                               |    |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                             |   |                                               |    |   |   |   |   |   |
| Principal                payments on collateralized financings                                                                                                                                   |   |                                               | (24,883 | ) |   |   | (76,080 | ) |
| Principal                payments on secured note payable                                                                                                                                        |   |                                               | (2,812  | ) |   |   | (937 | ) |
| Principal                payments on creditor notes payable                                                                                                                                      |   |                                               | (1,661  | ) |   |   | (389 | ) |
| Net                borrowing (repayment) on line of credit                                                                                                                                       |   |                                               | (5,500  | ) |   |   | 3,000 |   |
| Principal                payments of subordinated debentures                                                                                                                                     |   |                                               | (7,700  | ) |   |   | - |   |
| Net                cash used in financing activities                                                                                                                                             |   |                                               | (42,556 | ) |   |   | (74,406 | ) |
|                                                                                                                                                                                             |   |                                               |    |   |   |   |   |   |
| INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                                  |   |                                               | 70      |   |   |   | (1,245 | ) |
| CASH                AND CASH EQUIVALENTS—Beginning of year                                                                                                                                 |   |                                               | 6,958   |   |   |   | 6,878 |   |
| CASH                AND CASH EQUIVALENTS—End of period                                                                                                                                     |   | $                                                  | 7,028   |   |   | $ | 5,633 |   |
|                                                                                                                                                                                             |   |                                               |    |   |   |   |   |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                |   |                                               |    |   |   |   |   |   |
| Income                tax refunds                                                                                                                                                                |   | $                                                  | 1       |   |   | $ | 2 |   |
| Interest                paid                                                                                                                                                                     |   | $                                                  | 4,924   |   |   | $ | 7,737 |   |
| Non                cash items:                                                                                                                                                                   |   |                                               |    |   |   |   |   |   |
| Initial                fair value adjustment for creditor notes payable                                                                                                                          |   | $                                                  | 994     |   |   | $ | - |   |
| Transfer                of securitized finance receivables—net to other assets after the                collateralized financing for securitization 2003-A was paid in                full |   | $                                                  | -       |   |   | $ | 2,771 |   |

----

**PART        I  FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(Unaudited)**

**(Dollars      in thousands)**

|                                                                                   |   | **Quarters                  Ended September 30,** |   |   | **Nine                  Months Ended September 30,** |   |
|----------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|                                                                                   |   | **2007**                                          |   |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
|                                                                                   |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |
| NET                INCOME                                                              |   | $                                                 | 1,491  |   |                                                 | $      | 8,135 |   |   | $ | 10,162 |   |   | $ | 12,900 |   |
|                                                                                   |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                COMPREHENSIVE INCOME:                                             |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                gain on beneficial interest in Master Trust, net of tax      |   |                                              | 651    |   |                                                 |   | 8,096 |   |   |   | 2,798 |   |   |   | 17,758 |   |
| Reclassification                adjustment for gain included in net income, net of tax |   |                                              | (814   | )      |                                                 |   | (7,900 | ) |   |   | (7,840 | ) |   |   | (10,842 | ) |
| Net                other comprehensive income                                          |   |                                              | (163   | )      |                                                 |   | 196 |   |   |   | (5,042 | ) |   |   | 6,916 |   |
|                                                                                   |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                INCOME                                                    |   | $                                                 | 1,328  |   |                                                 | $      | 8,331 |   |   | $ | 5,120 |   |   | $ | 19,816 |   |

----

**PART      I  FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUARTERS AND NINE      MONTHS ENDED SEPTEMBER 30, 2007 AND 2006**

| **1.** | **BASIS                OF PRESENTATION** |
|--------|------------------------------------------|

**New      Accounting Pronouncements**

*Accounting for Uncertainty in Income Taxes*

*Fair Value Measurements*
*,*

*The Fair Value Option for      Financial Assets and Financial Liabilities*

----

**PART        I  FINANCIAL INFORMATION**

| **2.** | **GENERAL                DISCUSSION** |
|--------|---------------------------------------|

| **3.** | **NET                ASSETS OF COLLATERALIZED                FINANCINGS** |
|--------|---------------------------------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

|   |                                                             |   | **September                30,** |   |   | **December                31,** |   |
|--------|------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|   |                                                             |   | **2007**                         |   |   | **2006**                        |   |
|   |                                                             |   |                             |   |   |                            |   |
|   | Securitized                finance receivables—net         |   | $                                | 6.4    |   |                            | $      | 27.4 |   |
|   | Restricted                cash                                   |   |                             | 5.6    |   |                            |   | 13.3 |   |
|   | Receivable                from servicer included in other assets |   |                             | 0.1    |   |                            |   | 0.3 |   |
|   | Collateralized                financings                         |   |                             | (7.5   | )      |                            |   | (32.4 | ) |
|   | Accrued                interest payable                          |   |                             | -      |   |                            |   | (0.1 | ) |
|   | Other                payables and accrued expenses               |   |                             | 0.2    |   |                            |   | (0.1 | ) |
|   |                                                             |   |                             |   |   |                            |   |   |   |
|   | Amounts                due to Master Trust                       |   | $                                | 4.8    |   |                            | $      | 8.4 |   |

| **4.** | **SECURITIZED                FINANCE RECEIVABLES—NET** |
|--------|--------------------------------------------------------------|

|   |                                                                |   | **September                30,** |   |   | **December                31,** |   |
|--------|---------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|   |                                                                |   | **2007**                         |   |   | **2006**                        |   |
|   | Principal                balance of securitized finance receivables |   | $                                | 6,401  |   |                            | $      | 28,800 |   |
|   | Accrued                interest receivable                          |   |                             | 60     |   |                            |   | 264 |   |
|   | Allowance                for credit losses                          |   |                             | (44    | )      |                            |   | (1,617 | ) |
|   |                                                                |   |                             |   |   |                            |   |   |   |
|   | Securitized                finance receivables—net            |   | $                                | 6,417  |   |                            | $      | 27,447 |   |

|   |                                                |   | **Quarters                  Ended September 30,** |   |   | **Nine                  Months Ended September 30,** |   |
|--------|-----------------------------------------------------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|   |                                                |   | **2007**                                          |   |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
|   |                                                |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |
|   | Balance                at the beginning of period   |   | $                                                 | 322    |   |                                                 | $      | 4,089 |   |   | $ | 1,617 |   |   | $ | 6,503 |   |
|   | Charge-offs                                         |   |                                              | (513   | )      |                                                 |   | (1,659 | ) |   |   | (2,227 | ) |   |   | (7,975 | ) |
|   | Recoveries                                          |   |                                              | 744    |   |                                                 |   | 1,314 |   |   |   | 2,798 |   |   |   | 7,705 |   |
|   | Recovery                for estimated credit losses |   |                                              | (509   | )      |                                                 |   | (1,174 | ) |   |   | (2,144 | ) |   |   | (3,663 | ) |
|   |                                                |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period     |   | $                                                 | 44     |   |                                                 | $      | 2,570 |   |   | $ | 44 |   |   | $ | 2,570 |   |

----

**PART          I  FINANCIAL INFORMATION**

| **5.** | **COLLATERALIZED                FINANCINGS** |
|--------|----------------------------------------------|

|   |                              |   | **Note**  |   | **Initial                Note** |   |   | **September                30,** |   |   | **December                31,** |   |
|--------|-----------------------------------|--------|----------------|--------|---------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|   | **Notes                  Series** |   | **Rate**       |   | **Amount**                      |   |   | **2007**                         |   |   | **2006**                        |   |
|   |                              |   |           |   |                            |   |   |                             |   |   |                            |   |   |
|   | Series                2004-A1     |   |           | 4.15   | %                               |   | $      | 29,485                           |   |   | $                               | -      |   |   | $ | 425 |   |
|   | Series                2004-A2     |   |           | 4.55   |                            |   |   | 29,298                           |   |   |                            | -      |   |   |   | 764 |   |
|   | Series                2004-B      |   |           | 5.02   |                            |   |   | 25,896                           |   |   |                            | -      |   |   |   | 1,009 |   |
|   | Series                2004-C      |   |           | 4.89   |                            |   |   | 51,992                           |   |   |                            | 663    |   |   |   | 3,946 |   |
|   | Series                2005-A      |   |           | 4.49   |                            |   |   | 47,742                           |   |   |                            | 1,138  |   |   |   | 5,564 |   |
|   | Series                2005-B      |   |           | 4.69   |                            |   |   | 50,684                           |   |   |                            | 2,047  |   |   |   | 8,087 |   |
|   | Series                2005-C      |   |           | 5.40   |                            |   |   | 54,933                           |   |   |                            | 3,637  |   |   |   | 12,573 |   |
|   |                              |   |           |   |                            |   |   |                             |   |   |                            |   |   |   |   |   |   |
|   |                              |   |           |   |                            |   | $      | 290,030                          |   |   | $                               | 7,485  |   |   | $ | 32,368 |   |

| **6.** | **BENEFICIAL                INTEREST IN MASTER TRUST** |
|--------|--------------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

|   | **§** | *Credit                Loss Assumptions—*Gross credit losses are calculated using the loss to                liquidation factor methodology. The loss to liquidation methodology                takes                into account the current loss level of each securitized pool and                its “pool                factor,” which is the percentage remaining of the original pool balance.                Dividing the current cumulative net loss for each pool by its                corresponding pool factor, future projected cumulative net losses                were                calculated. However, recovery cash flows from gross credit losses                are                estimated independently as two different cash flow streams. These                two                recovery cash flow streams are: |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | *Liquidation                recovery*– consists of net auction proceeds, deficiency recoveries by                the servicer, and scheduled payments from defaulted accounts. On                a monthly                basis for each pool, liquidation recovery cash dollars as a percentage                of                gross default dollars has been calculated based on a rolling twelve                month                average. This twelve month average for each pool is used to project                monthly liquidation recovery by multiplying this value by the monthly                estimated gross default dollars                projected. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | *Bankruptcy                recovery*– consists of cash recovered from accounts charged off and in                bankruptcy status. Bankruptcy cash flows are somewhat independent                of                default rates due to bankruptcy court involvement and the latitude                allowed                debtors during the bankruptcy process. UAC has observed a reasonably                predictable cash flow stream from bankruptcy payments in each securitized                pool. This cash flow stream will, however, eventually expire as the                bankruptcy cases are dismissed from the various courts with either                a                successful or non-successful outcome. A previous twelve month average                of                bankruptcy cash flows is calculated for each pool. This value is                then                reduced on a straight line basis over either a 10 or 22 month period.                The                bankruptcy recovery has been adjusted to reflect the percentage of                accounts remaining after a significant portion of the Chapter 13                bankruptcy receivables were sold during June                2006. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | *Prepayment                Assumptions*—UAC estimates prepayments by evaluating the historical                prepayment performance of each pool of receivables. UAC used annual                prepayment rates ranging from 29.1% to 39.5% at September 30, 2007                as                compared to 30.2% to 46.0% at December 31,                2006. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | *Discount                Rate Assumptions*—UAC determines the estimated fair value of its                beneficial interest in Master Trust by discounting the expected cash                flows                released from the Master Trust account (the cash out method) using                a                discount rate that UAC believes is commensurate with the risks involved.                UAC used a discount rate of 15% to value the beneficial interest                in Master                Trust at September 30, 2007 and December 31, 2006 to reflect current                market conditions. |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

|   |                                                                         |   | **Quarter                  Ended September 30, 2007** |   |   | **Nine                  Months Ended September 30, 2007** |   |
|--------|------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|
|   |                                                                         |   |                                                  |   |   |                                                      |   |
|   | Beginning                balance                                             |   | $                                                     | 10,339 |   |                                                      | $      | 23,601 |   |
|   | Total                unrealized gains included in other comprehensive income |   |                                                  | 1,026  |   |                                                      |   | 4,407 |   |
|   | Purchases,                issuances and settlements                          |   |                                                  | (521   | )      |                                                      |   | (17,164 | ) |
|   | Transfers                in and/or out of Level 3                            |   |                                                  | -      |   |                                                      |   | - |   |
|   | Ending                balance                                                |   | $                                                     | 10,844 |   |                                                      | $      | 10,844 |   |

| **7.** | **FINANCE                RECEIVABLES – NET** |
|--------|----------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

|   |                                                                                                                           |   | **September                30,** |    |   | **December                31,** |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|   |                                                                                                                           |   | **2007**                         |    |   | **2006**                        |   |
|   |                                                                                                                           |   |                             |    |   |                            |   |
|   | Finance                receivables, gross                                                                                      |   | $                                | 104,626 |   |                            | $      | 104,399 |   |
|   | Unearned                interest                                                                                               |   |                             | (6,123  | )      |                            |   | (8,574 | ) |
|   | Finance                receivables, net of unearned finance charge income                                                      |   |                             | 98,503  |   |                            |   | 95,825 |   |
|   |                                                                                                                           |   |                             |    |   |                            |   |   |   |
|   | Accretable                unearned acquisition discounts and fees                                                              |   |                             | (11,412 | )      |                            |   | (11,438 | ) |
|   | Finance                receivables, net of unearned finance charge income and discounts                and                fees |   |                             | 87,091  |   |                            |   | 84,387 |   |
|   |                                                                                                                           |   |                             |    |   |                            |   |   |   |
|   | Allowance                for loan losses                                                                                       |   |                             | (6,185  | )      |                            |   | (5,694 | ) |
|   |                                                                                                                           |   |                             |    |   |                            |   |   |   |
|   | Finance                receivables, net                                                                                        |   | $                                | 80,906  |   |                            | $      | 78,693 |   |

|   |                                                 |   | **Quarters                Ended September 30,** |   |   | **Nine                Months Ended September 30,** |   |
|--------|------------------------------------------------------|--------|-------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|   |                                                 |   | **2007**                                        |   |   | **2006**                                           |   |   | **2007** |   |   | **2006** |   |
|   |                                                 |   |                                            |   |   |                                               |   |   |   |   |   |   |   |
|   | Balance                at beginning of period        |   | $                                               | 5,784  |   |                                               | $      | 5,832 |   |   | $ | 5,694 |   |   | $ | 6,031 |   |
|   | Charge-offs,                net of recoveries        |   |                                            | (1,588 | )      |                                               |   | (1,267 | ) |   |   | (4,632 | ) |   |   | (3,570 | ) |
|   | Provision                for estimated credit losses |   |                                            | 1,989  |   |                                               |   | 1,194 |   |   |   | 5,123 |   |   |   | 3,298 |   |
|   |                                                 |   |                                            |   |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period      |   | $                                               | 6,185  |   |                                               | $      | 5,759 |   |   | $ | 6,185 |   |   | $ | 5,759 |   |

| **8.** | **OTHER                ASSETS** |
|--------|---------------------------------|

|   |                                                               |   | **September                30,** |   |   | **December                31,** |   |
|--------|--------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|   |                                                               |   | **2007**                         |   |   | **2006**                        |   |
|   |                                                               |   |                             |   |   |                            |   |
|   | Receivable                from servicer                            |   | $                                | 134    |   |                            | $      | 296 |   |
|   | Prepaid                expenses                                    |   |                             | 464    |   |                            |   | 408 |   |
|   | Property,                equipment and leasehold improvements, net |   |                             | 634    |   |                            |   | 609 |   |
|   | Receivables                held for investment, net                |   |                             | 325    |   |                            |   | 454 |   |
|   | Receivable                from Master Trust account                |   |                             | 158    |   |                            |   | 268 |   |
|   | Other                                                              |   |                             | 102    |   |                            |   | 185 |   |
|   | Total                other assets                                  |   | $                                | 1,817  |   |                            | $      | 2,220 |   |

----

**PART          I  FINANCIAL INFORMATION**

| **9.** | **GOODWILL** |
|--------|--------------|

| **10.** | **CREDITOR                NOTES PAYABLE** |
|---------|-------------------------------------------|

*Financial Reporting by Entities in Reorganization Under the Bankruptcy      Code*
*Accounting for Transfers and Servicing of Financial Assets and      Extinguishment of Liabilities*

|   |                                                                                                    |   | **Quarter                  Ended September 30, 2007** |   |   | **Nine                  Months Ended September 30, 2007** |   |
|--------|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|
|   |                                                                                                    |   |                                                  |   |   |                                                      |   |
|   | Beginning                balance                                                                        |   | $                                                     | 1,053  |   |                                                      | $      | 2,478 |   |
|   |                                                                                                    |   |                                                  |   |   |                                                      |   |   |   |
|   | Total                losses included in earnings (recorded as other revenues                (expenses)) |   |                                                  | 206    |   |                                                      |   | 393 |   |
|   | Purchases,                issuances and settlements                                                     |   |                                                  | 75     |   |                                                      |   | (1,537 | ) |
|   | Transfers                in and/or out of Level 3                                                       |   |                                                  | -      |   |                                                      |   | - |   |
|   |                                                                                                    |   |                                                  |   |   |                                                      |   |   |   |
|   | Ending                balance                                                                           |   | $                                                     | 1,334  |   |                                                      | $      | 1,334 |   |

----

**PART          I  FINANCIAL INFORMATION**

| **11.** | **INCOME                TAXES** |
|---------|---------------------------------|

| **12.** | **BUSINESS                SEGMENT INFORMATION** |
|---------|-------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

| **For                The Quarter Ended September 30, 2007**                                                                       |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 1,676  |   |                              | $      | 7,649  |                                   |   | $      | 18               |   |   | $ | 9,343 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (188   | )      |                              |   | (928   | )                                      |   |   | (291             | )      |   |   | (1,407 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 1,488  |   |                              |   | 6,721  |                                   |   |   | (273             | )      |   |   | 7,936 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 509    |   |                              |   | (1,989 | )                                      |   |   | -                |   |   |   | (1,480 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 1,997  |   |                              |   | 4,732  |                                   |   |   | (273             | )      |   |   | 6,456 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other expenses                                                                                               |   |    | (923   | )      |                              |   | (2,773 | )                                      |   |   | (468             | )      |   |   | (4,164 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   | $       | 1,074  |   |                              | $      | 1,959  |                                   |   | $      | (741             | )      |   | $ | 2,292 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |

| **For                The Quarter Ended September 30, 2006**                                                                       |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 9,822  |   |                              | $      | 7,498  |                                   |   | $      | 8                |   |   | $ | 17,328 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (1,047 | )      |                              |   | (1,429 | )                                      |   |   | (396             | )      |   |   | (2,872 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 8,775  |   |                              |   | 6,069  |                                   |   |   | (388             | )      |   |   | 14,456 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 1,174  |   |                              |   | (1,194 | )                                      |   |   | -                |   |   |   | (20 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 9,949  |   |                              |   | 4,875  |                                   |   |   | (388             | )      |   |   | 14,436 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (6,252 | )      |                              |   | (2,889 | )                                      |   |   | 2,592            |   |   |   | (6,549 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                before income taxes                                                                                         |   | $       | 3,697  |   |                              | $      | 1,986  |                                   |   | $      | 2,204            |   |   | $ | 7,887 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |

| **For                The Nine Months Ended September 30, 2007**                                                                   |   | **UAC** |    |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 14,155  |   |                              | $      | 22,690 |                                   |   | $      | 67               |   |   | $ | 36,912 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (913    | )      |                              |   | (3,081 | )                                      |   |   | (951             | )      |   |   | (4,945 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 13,242  |   |                              |   | 19,609 |                                   |   |   | (884             | )      |   |   | 31,967 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 2,145   |   |                              |   | (5,124 | )                                      |   |   | -                |   |   |   | (2,979 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 15,387  |   |                              |   | 14,485 |                                   |   |   | (884             | )      |   |   | 28,988 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (18,344 | )      |                              |   | (8,403 | )                                      |   |   | 13,671           |   |   |   | (13,076 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   | $       | (2,957  | )      |                              | $      | 6,082  |                                   |   | $      | 12,787           |   |   | $ | 15,912 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |

| **For                The Nine Months Ended September 30, 2006**                                                                   |   | **UAC** |    |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 18,759  |   |                              | $      | 21,553 |                                   |   | $      | 32               |   |   | $ | 40,344 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (3,963  | )      |                              |   | (3,994 | )                                      |   |   | (1,337           | )      |   |   | (9,294 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 14,796  |   |                              |   | 17,559 |                                   |   |   | (1,305           | )      |   |   | 31,050 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 3,663   |   |                              |   | (3,298 | )                                      |   |   | -                |   |   |   | 365 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 18,459  |   |                              |   | 14,261 |                                   |   |   | (1,305           | )      |   |   | 31,415 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (14,189 | )      |                              |   | (8,518 | )                                      |   |   | 2,973            |   |   |   | (19,734 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                before income taxes                                                                                         |   | $       | 4,270   |   |                              | $      | 5,743  |                                   |   | $      | 1,668            |   |   | $ | 11,681 |   |

----

**PART          I  FINANCIAL INFORMATION**

|   |                               |   | **September                30,** |    |   | **December                31,** |   |
|--------|------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|   |                               |   | **2007**                         |    |   | **2006**                        |   |
|   |                               |   |                             |    |   |                            |   |
|   | Corporate                and other |   | $                                | 38,576  |   |                            | $      | 43,205 |   |
|   | Coastal                Credit      |   |                             | 118,507 |   |                            |   | 114,900 |   |
|   | UAC                                |   |                             | 26,335  |   |                            |   | 67,319 |   |
|   |                               |   |                             |    |   |                            |   |   |   |
|   |                               |   | $                                | 183,418 |   |                            | $      | 225,424 |   |

| **13.** | **STOCK                BASED COMPENSATION** |
|---------|---------------------------------------------|

*Share-Based Payment*

----

**PART          I  FINANCIAL INFORMATION**

| **14.** | **EARNINGS                PER SHARE** |
|---------|---------------------------------------|

|   |                                                                  |   | **Quarters                  Ended September 30,** |      |   | **Nine                  Months Ended September 30,** |   |
|--------|-----------------------------------------------------------------------|--------|---------------------------------------------------|-----------|--------|------------------------------------------------------|--------|
|   |                                                                  |   | **2007**                                          |      |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |
|   | Net                income in thousands                                |   | $                                                 | 1,491     |   |                                                 | $      | 8,135 |   |   | $ | 10,162 |   |   | $ | 12,900 |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted                average shares outstanding                    |   |                                              | 3,842,287 |   |                                                 |   | 3,813,155 |   |   |   | 3,840,025 |   |   |   | 3,813,045 |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Incremental                shares from assumed conversions:           |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Warrants                                                              |   |                                              | 83,857    |   |                                                 |   | 63,122 |   |   |   | 84,662 |   |   |   | 55,560 |   |
|   | Stock                award plans                                      |   |                                              | 26,749    |   |                                                 |   | 24,653 |   |   |   | 21,742 |   |   |   | 7,572 |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted                average shares and assumed incremental shares |   |                                              | 3,952,893 |   |                                                 |   | 3,900,930 |   |   |   | 3,946,429 |   |   |   | 3,876,177 |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Earnings                per share:                                    |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Basic                                                                 |   | $                                                 | 0.39      |   |                                                 | $      | 2.13 |   |   | $ | 2.65 |   |   | $ | 3.38 |   |
|   |                                                                  |   |                                              |      |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Diluted                                                               |   | $                                                 | 0.38      |   |                                                 | $      | 2.09 |   |   | $ | 2.58 |   |   | $ | 3.33 |   |

| **15.** | **SUBSEQUENT                EVENTS** |
|---------|--------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

| **16.** | **COMMITMENTS                AND CONTINGENCIES** |
|---------|--------------------------------------------------|

----

**PART            I  FINANCIAL INFORMATION**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS.**

**General**

**Critical      Accounting Policies**

***Net      Assets of Collateralized Financings***

----

**PART          I  FINANCIAL INFORMATION**

***Valuation      of Beneficial Interest in Master Trust***

***Allowance      for Loan Losses – Finance Receivables***

***Valuation      of Creditor Notes Payable***

***Income      Taxes***

----

**PART          I  FINANCIAL INFORMATION**

*Accounting for Income Taxes*
*Accounting for      Uncertainty in Income Taxes*

**New      Accounting Pronouncements**

*Fair Value Measurements*
*,*

*The Fair Value Option for      Financial Assets and Financial Liabilities*

**Results      of Operations**

*The      Quarter Ended September 30, 2007 Compared to the Quarter Ended September 30,      2006 – Overview*

|   | **§** | Interest                income for the quarter ended September 30, 2007 decreased $1.3 million                as                a result as a result of the continued liquidation of the UAC receivable                portfolio. |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Accretion                and other income decreased $6.7 million to $1.4 million for the quarter                ended September 30, 2007 as compared to $8.1 million for the same                period                during 2006. This decline is the result of the decline of accretion                income                from the beneficial interest in Master                Trust. |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                provision for estimated credit losses of $1.5 million was recognized                for                the quarter ended September 30, 2007 compared to a provision for                estimated                credit losses of $20,000 for the quarter ended September 30, 2006.                These                changes are explained further in the comparison discussion between                the                quarters ended September 30, 2007 and 2006                below. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                gain from deficiency sale and litigation settlement of $4.3 million                during                the quarter ended September 30, 2006, with no such gain occurring                during                the quarter ended September 30,                2007. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

|   | **§** | Income                        tax expense was $(0.8) million for the quarter ended September                        30, 2007                        compared to an income tax benefit of $0.2 million for the                        quarter ended                        September 30, 2006. These changes are explained further in                        the comparison                        discussion between the quarters ended September 30, 2007                        and 2006                        below. |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Interest                expense for the quarter ended September 30, 2007 decreased $1.5 million                as                the result of the reductions of debt as compared to the quarter ended                September 30, 2006. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Charge                to master trust–net decreased $5.0 million during the quarter ended                September 30, 2007 as compared to the quarter ended September 30,                2006 as                a result of the reduction of the activity from                UAC. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*The      Nine Months Ended September 30, 2007 Compared to the Nine Months Ended      September30, 2006 – Overview*

|   | **§** | Interest                income for the nine months ended September 30, 2007 decreased $4.5                million                as a result as a result of the continued liquidation of the UAC receivable                portfolio. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                provision for estimated credit losses of $(3.0) million was recognized                for                the nine months ended September 30, 2007 compared to a recovery of                estimated credit losses of $0.4 million for the same period during                2006.                These changes are explained further in the comparison discussion                between                the nine months ended September 30, 2007 and 2006                below. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                gain from deficiency sale and litigation settlement of $8.0 million                during                the nine months ended September 30, 2006, with no significant gain                occurring during the nine months ended September 30,                2007. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Income                tax expense was $(5.8) million for the nine months ended September                30,                2007 compared to an income tax benefit of $1.2 million for the nine                months                ended September 30, 2006. These changes are explained further in                the                comparison discussion between the nine months ended September 30,                2007 and                2006 below. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Accretion                and other income increased $1.1 million during the nine months ended                September 30, 2007 to $12.7 million as compared to $11.5 million                for the                same period during 2006. This increase is the result of the increase                of                accretion income of the beneficial interest in Master                Trust. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Interest                expense for the nine months ended September 30, 2007 decreased $4.3                million as the result of the reductions of debt as compared to the                nine                months ended September 30, 2007. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Charge                to master trust–net decreased $11.6 million during the nine months ended                September 30, 2007 as compared to the same period during 2006 as                a result                of the reduction of the activity from                UAC. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

**Discussion        of Results**

| **For                The Quarter Ended September 30, 2007**                                                                       |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 294    |   |                              | $      | 7,649  |                                   |   | $      | -                |   |   | $ | 7,943 |   |
| Accretion                and other interest                                                                                       |   |    | 1,382  |   |                              |   | -      |                                   |   |   | 18               |   |   |   | 1,400 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 1,676  |   |                              |   | 7,649  |                                   |   |   | 18               |   |   |   | 9,343 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (188   | )      |                              |   | (928   | )                                      |   |   | (291             | )      |   |   | (1,407 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 1,488  |   |                              |   | 6,721  |                                   |   |   | (273             | )      |   |   | 7,936 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 509    |   |                              |   | (1,989 | )                                      |   |   | -                |   |   |   | (1,480 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 1,997  |   |                              |   | 4,732  |                                   |   |   | (273             | )      |   |   | 6,456 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (101   | )      |                              |   | (1,859 | )                                      |   |   | (168             | )      |   |   | (2,128 | ) |
| Operating                expenses                                                                                                 |   |    | (110   | )      |                              |   | (804   | )                                      |   |   | (300             | )      |   |   | (1,214 | ) |
| Third                party servicing expense                                                                                      |   |    | (99    | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (99 | ) |
| Bankruptcy                costs                                                                                                   |   |    | -      |   |                              |   | -      |                                   |   |   | -                |   |   |   | - |   |
| (Charge)                credit to master trust—net                                                                          |   |    | (540   | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (540 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | (206   | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (206 | ) |
| Gain                from extinguishment of debt                                                                                   |   |    | -      |   |                              |   | -      |                                   |   |   | -                |   |   |   | - |   |
| Gain                from deficiency sale and litigation settlement                                                                |   |    | -      |   |                              |   | -      |                                   |   |   | -                |   |   |   | - |   |
| Other                income (expense)                                                                                             |   |    | 133    |   |                              |   | (110   | )                                      |   |   | -                |   |   |   | 23 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (923   | )      |                              |   | (2,773 | )                                      |   |   | (468             | )      |   |   | (4,164 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   |    | 1,074  |   |                              |   | 1,959  |                                   |   |   | (741             | )      |   |   | 2,292 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                tax expense                                                                                                 |   |    | -      |   |                              |   | -      |                                   |   |   | (801             | )      |   |   | (801 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                income                                                                                                         |   | $       | 1,074  |   |                              | $      | 1,959  |                                   |   | $      | (1,542           | )      |   | $ | 1,491 |   |

| **For                The Quarter Ended September 30, 2006**                                                                       |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 1,701  |   |                              | $      | 7,498  |                                   |   | $      | -                |   |   | $ | 9,199 |   |
| Accretion                and other interest                                                                                       |   |    | 8,121  |   |                              |   | -      |                                   |   |   | 8                |   |   |   | 8,129 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 9,822  |   |                              |   | 7,498  |                                   |   |   | 8                |   |   |   | 17,328 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (1,047 | )      |                              |   | (1,429 | )                                      |   |   | (396             | )      |   |   | (2,872 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 8,775  |   |                              |   | 6,069  |                                   |   |   | (388             | )      |   |   | 14,456 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 1,174  |   |                              |   | (1,194 | )                                      |   |   | -                |   |   |   | (20 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 9,949  |   |                              |   | 4,875  |                                   |   |   | (388             | )      |   |   | 14,436 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (56    | )      |                              |   | (1,967 | )                                      |   |   | (232             | )      |   |   | (2,255 | ) |
| Operating                expenses                                                                                                 |   |    | (171   | )      |                              |   | (829   | )                                      |   |   | (279             | )      |   |   | (1,279 | ) |
| Third                party servicing expense                                                                                      |   |    | (373   | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (373 | ) |
| Bankruptcy                costs                                                                                                   |   |    | (18    | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (18 | ) |
| (Charge)                credit to master trust—net                                                                          |   |    | (5,587 | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (5,587 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | -      |   |                              |   | -      |                                   |   |   | -                |   |   |   | - |   |
| Gain                (loss) from extinguishment of debt                                                                            |   |    | (4,444 | )      |                              |   | -      |                                   |   |   | 3,103            |   |   |   | (1,341 | ) |
| Gain                from deficiency sale and litigation settlement                                                                |   |    | 4,334  |   |                              |   | -      |                                   |   |   | -                |   |   |   | 4,334 |   |
| Other                income (expense)                                                                                             |   |    | 63     |   |                              |   | (93    | )                                      |   |   | -                |   |   |   | (30 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (6,252 | )      |                              |   | (2,889 | )                                      |   |   | 2,592            |   |   |   | (6,549 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                before income taxes                                                                                         |   |    | 3,697  |   |                              |   | 1,986  |                                   |   |   | 2,204            |   |   |   | 7,887 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                tax benefit                                                                                                 |   |    | -      |   |                              |   | -      |                                   |   |   | 248              |   |   |   | 248 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                income                                                                                                         |   | $       | 3,697  |   |                              | $      | 1,986  |                                   |   | $      | 2,452            |   |   | $ | 8,135 |   |

----

**PART          I  FINANCIAL INFORMATION**

| **For                The Nine Months Ended September 30, 2007**                                                                   |   | **UAC** |    |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 1,539   |   |                              | $      | 22,690 |                                   |   | $      | -                |   |   | $ | 24,229 |   |
| Accretion                and other interest                                                                                       |   |    | 12,616  |   |                              |   | -      |                                   |   |   | 67               |   |   |   | 12,683 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 14,155  |   |                              |   | 22,690 |                                   |   |   | 67               |   |   |   | 36,912 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (913    | )      |                              |   | (3,081 | )                                      |   |   | (951             | )      |   |   | (4,945 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 13,242  |   |                              |   | 19,609 |                                   |   |   | (884             | )      |   |   | 31,967 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 2,145   |   |                              |   | (5,124 | )                                      |   |   | -                |   |   |   | (2,979 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 15,387  |   |                              |   | 14,485 |                                   |   |   | (884             | )      |   |   | 28,988 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (233    | )      |                              |   | (5,610 | )                                      |   |   | (437             | )      |   |   | (6,280 | ) |
| Operating                expenses                                                                                                 |   |    | (362    | )      |                              |   | (2,516 | )                                      |   |   | (1,154           | )      |   |   | (4,032 | ) |
| Third                party servicing expense                                                                                      |   |    | (453    | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (453 | ) |
| Bankruptcy                costs                                                                                                   |   |    | (6      | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (6 | ) |
| (Charge)                credit to master trust—net                                                                          |   |    | (2,031  | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (2,031 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | (393    | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (393 | ) |
| Gain                (loss) from extinguishment of debt                                                                            |   |    | (15,262 | )      |                              |   | -      |                                   |   |   | 15,262           |   |   |   | - |   |
| Gain                from deficiency sale and litigation settlement                                                                |   |    | 22      |   |                              |   | -      |                                   |   |   | -                |   |   |   | 22 |   |
| Other                income (expense)                                                                                             |   |    | 374     |   |                              |   | (277   | )                                      |   |   | -                |   |   |   | 97 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (18,344 | )      |                              |   | (8,403 | )                                      |   |   | 13,671           |   |   |   | (13,076 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   |    | (2,957  | )      |                              |   | 6,082  |                                   |   |   | 12,787           |   |   |   | 15,912 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                tax expense                                                                                                 |   |    | -       |   |                              |   | -      |                                   |   |   | (5,750           | )      |   |   | (5,750 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                income (loss)                                                                                                  |   | $       | (2,957  | )      |                              | $      | 6,082  |                                   |   | $      | 7,037            |   |   | $ | 10,162 |   |

| **For                The Nine Months Ended September 30, 2006**                                                                   |   | **UAC** |    |   | **Coastal                Credit** |   |   | **Corporate                and Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|-----------------------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 7,255   |   |                              | $      | 21,553 |                                   |   | $      | -                |   |   | $ | 28,808 |   |
| Accretion                and other interest                                                                                       |   |    | 11,504  |   |                              |   | -      |                                   |   |   | 32               |   |   |   | 11,536 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 18,759  |   |                              |   | 21,553 |                                   |   |   | 32               |   |   |   | 40,344 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (3,963  | )      |                              |   | (3,994 | )                                      |   |   | (1,337           | )      |   |   | (9,294 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 14,796  |   |                              |   | 17,559 |                                   |   |   | (1,305           | )      |   |   | 31,050 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 3,663   |   |                              |   | (3,298 | )                                      |   |   | -                |   |   |   | 365 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 18,459  |   |                              |   | 14,261 |                                   |   |   | (1,305           | )      |   |   | 31,415 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (228    | )      |                              |   | (5,713 | )                                      |   |   | (438             | )      |   |   | (6,379 | ) |
| Operating                expenses                                                                                                 |   |    | (772    | )      |                              |   | (2,467 | )                                      |   |   | (1,257           | )      |   |   | (4,496 | ) |
| Third                party servicing expense                                                                                      |   |    | (1,552  | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (1,552 | ) |
| Bankruptcy                costs                                                                                                   |   |    | (150    | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (150 | ) |
| (Charge)                credit to master trust—net                                                                          |   |    | (13,587 | )      |                              |   | -      |                                   |   |   | -                |   |   |   | (13,587 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | -       |   |                              |   | -      |                                   |   |   | -                |   |   |   | - |   |
| Gain                (loss) from extinguishment of debt                                                                            |   |    | (6,211  | )      |                              |   | -      |                                   |   |   | 4,668            |   |   |   | (1,543 | ) |
| Gain                from deficiency sale and litigation settlement                                                                |   |    | 8,043   |   |                              |   | -      |                                   |   |   | -                |   |   |   | 8,043 |   |
| Other                income (expense)                                                                                             |   |    | 268     |   |                              |   | (338   | )                                      |   |   | -                |   |   |   | (70 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (14,189 | )      |                              |   | (8,518 | )                                      |   |   | 2,973            |   |   |   | (19,734 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                before income taxes                                                                                         |   |    | 4,270   |   |                              |   | 5,743  |                                   |   |   | 1,668            |   |   |   | 11,681 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Income                tax benefit                                                                                                 |   |    | -       |   |                              |   | -      |                                   |   |   | 1,219            |   |   |   | 1,219 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                   |   |   |             |   |   |   |   |   |
| Net                income                                                                                                         |   | $       | 4,270   |   |                              | $      | 5,743  |                                   |   | $      | 2,887            |   |   | $ | 12,900 |   |

----

**PART          I  FINANCIAL INFORMATION**

***The        Quarter Ended September 30, 2007 Compared to the Quarter Ended September        30,        2006***

|   |                                                                          |   | **Quarters                  Ended September 30,** |   |
|--------|-------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|
|   |                                                                          |   | **2007**                                          |   |   | **2006** |   |
|   |                                                                          |   |                                              |   |   |   |   |
|   | UAC                discount accretion for beneficial interest in Master Trust |   | $                                                 | 1,282  |   |   | $ | 7,900 |   |
|   | Interest                on cash balances                                      |   |                                              | 118    |   |   |   | 229 |   |
|   |                                                                          |   |                                              |   |   |   |   |   |   |
|   | Accretion                and other interest income                            |   | $                                                 | 1,400  |   |   | $ | 8,129 |   |

----

**PART        I  FINANCIAL INFORMATION**

----

**PART        I  FINANCIAL INFORMATION**

***The      Nine Months Ended September 30, 2007 Compared to the Nine Months Ended September      30, 2006***

|   |                                                                          |   | **Nine                  Months Ended September 30,** |   |
|--------|-------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|   |                                                                          |   | **2007**                                             |   |   | **2006** |   |
|   |                                                                          |   |                                                 |   |   |   |   |
|   | UAC                discount accretion for beneficial interest in Master Trust |   | $                                                    | 12,243 |   |   | $ | 10,842 |   |
|   | Interest                on cash balances                                      |   |                                                 | 440    |   |   |   | 694 |   |
|   |                                                                          |   |                                                 |   |   |   |   |   |   |
|   | Accretion                and other interest income                            |   | $                                                    | 12,683 |   |   | $ | 11,536 |   |

----

**PART        I  FINANCIAL INFORMATION**

----

**PART          I  FINANCIAL INFORMATION**

----

**PART          I  FINANCIAL INFORMATION**

**Financial      Condition as of September 30, 2007 and December 31, 2006**

***Securitized      Finance Receivables, Net***

|   |                                                  |   | **September                30,** |   |   | **December                31,** |   |
|--------|-------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|   |                                                  |   | **2007**                         |   |   | **2006**                        |   |
|   | **Securitized                Finance Receivables**(1) |   |                             |   |   |                            |   |
|   | 2004-A1                                               |   | $                                | -      |   |                            | $      | 414 |   |
|   | 2004-A2                                               |   |                             | -      |   |                            |   | 637 |   |
|   | 2004-B                                                |   |                             | -      |   |                            |   | 855 |   |
|   | 2004-C                                                |   |                             | 564    |   |                            |   | 3,424 |   |
|   | 2005-A                                                |   |                             | 975    |   |                            |   | 4,913 |   |
|   | 2005-B                                                |   |                             | 1,705  |   |                            |   | 7,227 |   |
|   | 2005-C                                                |   |                             | 3,157  |   |                            |   | 11,330 |   |
|   |                                                  |   |                             | 6,401  |   |                            |   | 28,800 |   |
|   |                                                  |   |                             |   |   |                            |   |   |   |
|   | **Off-Balance                Sheet Securitizations**  |   |                             |   |   |                            |   |   |   |
|   | 2001-B                (2)                             |   |                             | 1,650  |   |                            |   | 4,719 |   |
|   | 2001-C                                                |   |                             | 5,325  |   |                            |   | 14,070 |   |
|   | 2002-A                                                |   |                             | 5,996  |   |                            |   | 14,530 |   |
|   |                                                  |   |                             | 12,971 |   |                            |   | 33,319 |   |
|   |                                                  |   |                             |   |   |                            |   |   |   |
|   | Total                Portfolios                       |   | $                                | 19,711 |   |                            | $      | 62,605 |   |

| (1) | On-balance                sheet portfolios held by UACSC as collateral for non-recourse asset-backed                notes. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (2) | The                2001-B transaction represents a separate issuance of notes, or a                separate                tranche, under the UACSC 1999 Master Owner                Trust. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART          I  FINANCIAL INFORMATION**

***Finance      Receivables, Net***

***Beneficial      Interest in Master Trust***

----

**PART          I  FINANCIAL INFORMATION**

***Collateralized      Financings***

***Accrued      Interest Payable***

***Creditor      Notes Payable***

**Liquidity      and Capital Resources for the Nine Months Ended September 30, 2007 and      2006**

----

**PART          I  FINANCIAL INFORMATION**

**Asset      Quality**

----

**PART          I  FINANCIAL INFORMATION**

***Securitized      Finance Receivables***

|   | **Current                  Transaction**                          |   | **Initial                  Transaction** |   | **Original                  Amount of Initial Transaction** |      |   | **Remaining                  Balance at September 30, 2007** |   |   | **Remaining                  Balance as a Percentage of Original Amount** |   | **Net                  Loss Incurred to Original Amount at September 30,                  2007**  |
|--------|-------------------------------------------------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------|-----------|--------|--------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
|   |                                                              |   |                                     |   |                                                        |      |   |                                                         |   |   |                                                                      |   |                                                                                                   |   |   |
|   | On                Balance Sheet Securitized Finance Receivables:  |   |                                     |   |                                                        |      |   |                                                         |   |   |                                                                      |   |                                                                                                   |   |   |
|   | 2004-C                                                            |   | 2000-B                                   |   | $                                                           | 534,294   |   |                                                         | $      | 564    |                                                                      |   |                                                                                                   | 0.11 | % |   |   | 11.37 | % |
|   | 2005-A                                                            |   | 2000-C                                   |   |                                                        | 499,999   |   |                                                         |   | 975    |                                                                      |   |                                                                                                   | 0.20 | % |   |   | 9.43 | % |
|   | 2005-B                                                            |   | 2000-D                                   |   |                                                        | 510,000   |   |                                                         |   | 1,705  |                                                                      |   |                                                                                                   | 0.33 | % |   |   | 10.03 | % |
|   | 2005-C                                                            |   | 2001-A                                   |   |                                                        | 573,000   |   |                                                         |   | 3,157  |                                                                      |   |                                                                                                   | 0.55 | % |   |   | 9.19 | % |
|   |                                                              |   |                                     |   |                                                        | 2,117,293 |   |                                                         |   | 6,401  |                                                                      |   |                                                                                                   |   |   |   |   |   |   |
|   |                                                              |   |                                     |   |                                                        |      |   |                                                         |   |   |                                                                      |   |                                                                                                   |   |   |   |   |   |   |
|   | Off                Balance Sheet Securitized Finance Receivables: |   |                                     |   |                                                        |      |   |                                                         |   |   |                                                                      |   |                                                                                                   |   |   |   |   |   |   |
|   | 2001-B                                                            |   |                                     |   |                                                        | 150,002   |   |                                                         |   | 1,650  |                                                                      |   |                                                                                                   | 1.10 | % |   |   | 7.33 | % |
|   | 2001-C                                                            |   |                                     |   |                                                        | 330,000   |   |                                                         |   | 5,325  |                                                                      |   |                                                                                                   | 1.61 | % |   |   | 6.83 | % |
|   | 2002-A                                                            |   |                                     |   |                                                        | 300,000   |   |                                                         |   | 5,996  |                                                                      |   |                                                                                                   | 2.00 | % |   |   | 4.96 | % |
|   |                                                              |   |                                     |   |                                                        | 780,002   |   |                                                         |   | 12,971 |                                                                      |   |                                                                                                   |   |   |   |   |   |   |
|   |                                                              |   |                                     |   |                                                        |      |   |                                                         |   |   |                                                                      |   |                                                                                                   |   |   |   |   |   |   |
|   | Total                                                             |   |                                     |   | $                                                           | 2,897,295 |   |                                                         | $      | 19,372 |                                                                      |   |                                                                                                   | 0.67 | % |   |   | 8.55 | % |

----

**PART          I  FINANCIAL INFORMATION**

|   |                                                                            |   | **September                  30, 2007** |   |   | **December                  31, 2006** |   |
|--------|---------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|
|   |                                                                            |   |                                    |   |   |                                   |   |
|   | **Securitized                finance receivables principal balance**            |   | $                                       | 6,401  |   |                                   | $      | 28,800 |   |
|   |                                                                            |   |                                    |   |   |                                   |   |   |   |
|   | Delinquencies:                                                                  |   |                                    |   |   |                                   |   |   |   |
|   | 30-59                days                                                       |   | $                                       | 853    |   |                                   | $      | 2,812 |   |
|   | 60-89                days                                                       |   |                                    | 238    |   |                                   |   | 748 |   |
|   | 90+                days                                                         |   |                                    | 82     |   |                                   |   | 419 |   |
|   | Total                delinquencies                                              |   | $                                       | 1,173  |   |                                   | $      | 3,979 |   |
|   |                                                                            |   |                                    |   |   |                                   |   |   |   |
|   | Delinquencies                as a percentage of securitized finance receivables |   |                                    | 18.3   | %      |                                   |   | 13.8 | % |
|   |                                                                            |   |                                    |   |   |                                   |   |   |   |
|   | **Off-balance                sheet finance receivables principal balance**      |   | $                                       | 12,971 |   |                                   | $      | 33,319 |   |
|   |                                                                            |   |                                    |   |   |                                   |   |   |   |
|   | Delinquencies:                                                                  |   |                                    |   |   |                                   |   |   |   |
|   | 30-59                days                                                       |   | $                                       | 893    |   |                                   | $      | 1,929 |   |
|   | 60-89                days                                                       |   |                                    | 217    |   |                                   |   | 544 |   |
|   | 90+                days                                                         |   |                                    | 74     |   |                                   |   | 220 |   |
|   | Total                delinquencies                                              |   | $                                       | 1,184  |   |                                   | $      | 2,693 |   |
|   |                                                                            |   |                                    |   |   |                                   |   |   |   |
|   | Delinquencies                as a percentage of securitized finance receivables |   |                                    | 9.1    | %      |                                   |   | 8.1 | % |

----

**PART          I  FINANCIAL INFORMATION**

|   |                                                                                                                  |   | **Quarters                  Ended September 30,** |   |   | **Nine                  Months Ended September 30,** |   |
|--------|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|   |                                                                                                                  |   | **2007**                                          |   |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
|   |                                                                                                                  |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |
|   | Balance                at the beginning of period                                                                     |   | $                                                 | 322    |   |                                                 | $      | 4,089 |   |   | $ | 1,617 |   |   | $ | 6,503 |   |
|   | Charge-offs                                                                                                           |   |                                              | (513   | )      |                                                 |   | (1,659 | ) |   |   | (2,227 | ) |   |   | (7,975 | ) |
|   | Recoveries                                                                                                            |   |                                              | 744    |   |                                                 |   | 1,314 |   |   |   | 2,798 |   |   |   | 7,705 |   |
|   | Recovery                for estimated credit losses                                                                   |   |                                              | (509   | )      |                                                 |   | (1,174 | ) |   |   | (2,144 | ) |   |   | (3,663 | ) |
|   |                                                                                                                  |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period                                                                       |   | $                                                 | 44     |   |                                                 | $      | 2,570 |   |   | $ | 44 |   |   | $ | 2,570 |   |
|   |                                                                                                                  |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Net                charge-offs (recoveries)                                                                           |   | $                                                 | (231   | )      |                                                 | $      | 345 |   |   | $ | (571 | ) |   | $ | 270 |   |
|   | Securitized                finance receivables                                                                        |   | $                                                 | 6,401  |   |                                                 | $      | 41,392 |   |   | $ | 6,401 |   |   | $ | 41,392 |   |
|   |                                                                                                                  |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Allowance                for loan losses as a percent of securitized finance                receivables               |   |                                              | 0.69   | %      |                                                 |   | 6.21 | % |   |   | 0.69 | % |   |   | 6.21 | % |
|   |                                                                                                                  |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Annualized                net charge-offs (recoveries) as a percent of securitized finance                receivables |   |                                              | (14.44 | )%     |                                                 |   | 3.33 | % |   |   | (11.89 | )% |   |   | 0.87 | % |

***Finance      Receivables***

|   |                                                                                |   | **September                30,** |    |   | **December                31,** |   |
|--------|-------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|   |                                                                                |   | **2007**                         |    |   | **2006**                        |   |
|   |                                                                                |   |                             |    |   |                            |   |
|   | Finance                receivables - gross balance                                  |   | $                                | 104,626 |   |                            | $      | 104,399 |   |
|   |                                                                                |   |                             |    |   |                            |   |   |   |
|   | Delinquencies:                                                                      |   |                             |    |   |                            |   |   |   |
|   | 30-59                days                                                           |   | $                                | 1,416   |   |                            | $      | 1,261 |   |
|   | 60-89                days                                                           |   |                             | 1,382   |   |                            |   | 898 |   |
|   | 90+                days                                                             |   |                             | 1,734   |   |                            |   | 1,208 |   |
|   | Total                delinquencies                                                  |   | $                                | 4,532   |   |                            | $      | 3,367 |   |
|   |                                                                                |   |                             |    |   |                            |   |   |   |
|   | Delinquencies                as a percentage of finance receivables - gross balance |   |                             | 4.3     | %      |                            |   | 3.2 | % |

----

**PART          I  FINANCIAL INFORMATION**

|   |                                                                                                                          |   | **Quarters                  Ended September 30,** |   |   | **Nine                  Months Ended September 30,** |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------|--------|
|   |                                                                                                                          |   | **2007**                                          |   |   | **2006**                                             |   |   | **2007** |   |   | **2006** |   |
|   |                                                                                                                          |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |
|   | Balance              at beginning of period                                                                                   |   | $                                                 | 5,784  |   |                                                 |   | 5,832 |   |   |   | 5,694 |   |   |   | 6,031 |   |
|   | Charge-offs,                net of recoveries                                                                                 |   |                                              | (1,588 | )      |                                                 |   | (1,267 | ) |   |   | (4,632 | ) |   |   | (3,570 | ) |
|   | Provision                for estimated credit losses                                                                          |   |                                              | 1,989  |   |                                                 |   | 1,194 |   |   |   | 5,123 |   |   |   | 3,298 |   |
|   |                                                                                                                          |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period                                                                               |   | $                                                 | 6,185  |   |                                                 | $      | 5,759 |   |   | $ | 6,185 |   |   | $ | 5,759 |   |
|   |                                                                                                                          |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Net                charge-offs                                                                                                |   | $                                                 | 1,588  |   |                                                 | $      | 1,267 |   |   | $ | 4,632 |   |   | $ | 3,570 |   |
|   | Finance                receivables, net of unearned finance charges                                                           |   | $                                                 | 98,503 |   |                                                 | $      | 96,987 |   |   | $ | 98,503 |   |   | $ | 96,987 |   |
|   |                                                                                                                          |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Allowance                for loan losses as a percent of finance receivables, net of unearned                finance charges  |   |                                              | 6.28   | %      |                                                 |   | 5.94 | % |   |   | 6.28 | % |   |   | 5.94 | % |
|   |                                                                                                                          |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Annualized                net charge-offs as a percent of finance receivables, net of unearned                finance charges |   |                                              | 6.45   | %      |                                                 |   | 5.23 | % |   |   | 6.27 | % |   |   | 4.91 | % |
|   |                                                                                                                          |   |                                              |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
|   | Allowance                for loan losses as a percent of annualized net charge-offs                                           |   |                                              | 97.37  | %      |                                                 |   | 113.63 | % |   |   | 100.15 | % |   |   | 120.99 | % |

----

**PART          I  FINANCIAL INFORMATION**

**Discussion      of Forward-Looking Statements**

|   | **§** | the                risks and uncertainties discussed in White River’s 2006 Annual Report on                Form 10-K; |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------|

|   | **§** | general                economic, market, or business                conditions; |
|--------|------------|---------------------------------------------------------------------------------|

|   | **§** | changes                in interest rates, the cost of funds, and demand for White River’s                financial services; |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | changes                in White River’s competitive                position; |
|--------|------------|------------------------------------------------------------------------------------|

|   | **§** | White                River’s ability to manage growth; |
|--------|------------|--------------------------------------------------------------|

|   | **§** | the                opportunities that may be presented to and pursued by White                River; |
|--------|------------|------------------------------------------------------------------------------------------------------|

|   | **§** | competitive                actions by other companies; |
|--------|------------|--------------------------------------------------------|

|   | **§** | changes                in laws or regulations; |
|--------|------------|------------------------------------------------|

|   | **§** | changes                in the policies of federal or state regulators and agencies;                and |
|--------|------------|--------------------------------------------------------------------------------------------------------|

|   | **§** | other                circumstances, many of which are beyond White River’s                control. |
|--------|------------|----------------------------------------------------------------------------------------------------------|

**ITEM      3. QUANTITATIVE AND QULAITATIVE DISCLOSURES ABOUT MARKET      RISK.**

----

**PART          I  FINANCIAL INFORMATION**

**ITEM      4. CONTROLS AND PROCEDURES.**

**Evaluation      of disclosure controls and procedures**

**Changes      in internal control over financial reporting**

----

**PART          II  OTHER INFORMATION**

**PART        II**

----

**ITEM      6. EXHIBITS.**

| 31.1   | Certification                by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a)                of the                Exchange Act |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                              |
| 31.2   | Certification                by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a)                of the                Exchange Act |
|   |                                                                                                                                              |
| 32     | Section                1350 Certifications                                                                                                        |

----

**SIGNATURES**

|                                 | **White                River Capital, Inc.** |
|--------------------------------------|----------------------------------------------|
|                                 | (Registrant)                            |
|                                 |                                         |   |
|  November              14, 2007 |                                    |
|                                 | By:                                          | /s/              Martin              J. Szumski |
|                                 |                                         | Martin                J. Szumski |
|                                 |                                         | Chief                Financial Officer |
|                                 |                                         | (Signing                on behalf of the registrant and as Principal Financial                Officer) |