Document:

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                                                                   EXHIBIT 10.16

                      WESTCORP ESOP AND SALARY SAVINGS PLAN

                             PARTICIPATION AGREEMENT

      THIS AGREEMENT, among Westcorp, a California corporation, (hereinafter
referred to as the "the Plan Sponsor"), and the following subsidiaries: WESTERN
FINANCIAL ASSOCIATE SOLUTIONS, a California corporation, WESTERN FINANCIAL BANK,
a federally chartered savings bank, WFS FINANCIAL INC, a California corporation,
WESTFIN INSURANCE AGENCY, INC., a California corporation, WFS RECEIVABLES
CORPORATION, a Nevada corporation, and WESTRAN SERVICES CORPORATION, a
California corporation (each individually referred to as "Subsidiary" and
collectively referred to as "Subsidiaries"), and the ADMINISTRATIVE COMMITTEE,
on behalf of the Westcorp ESOP and Salary Savings Plan (the "Plan"), is
effective as of January 1, 2004.

      WHEREAS, the Plan Sponsor originally adopted the Plan effective January 1,
1975, and its sponsorship of the Plan remains in effect;

      WHEREAS, each Subsidiary, in accordance with Section 2.13 of the Plan, has
been approved by the Administrative Committee as an entity eligible to sponsor
the Plan; and

      WHEREAS, each Subsidiary, pursuant to resolutions adopted by its Board of
Directors, has accepted it designation as an entity eligible to sponsor the
Plan, and has specifically indicated its desire to adopt the Plan and be bound
by its terms.

      NOW, THEREFORE, it is mutually agreed as follows:

      1.    Each Subsidiary hereby adopts the Plan and accepts co-sponsorship of
            the Plan with the Plan Sponsor, effective as of the date specified
            above, and specifically

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            agrees to be bound by the terms of the Plan as restated effective
            January 1, 2001 and as subsequently amended.

      2.    Each Subsidiary hereby agrees that the Plan Sponsor and/or the
            Administrative Committee can amend the Plan and Trust documents as
            provided in the documents, to be bound by any such amendments
            entered into by the Plan Sponsor and/or the Administrative Committee
            in accordance with Section 17.1 of the Plan, and that it shall be
            deemed to have approved such amendments.

      3.    Each Subsidiary hereby agrees that the Plan shall be administered by
            the Administrative Committee as provided in Section 11.3 of the
            Plan.

      4.    To the extent not specified by the terms of the Plan, each
            Subsidiary agrees that the Plan Sponsor shall have the sole
            authority and discretion to determine the amounts of employer
            contributions that the Subsidiary shall make to the Plan.

      5.    The Plan Sponsor accepts the adoption and co-sponsorship of the Plan
            by the Subsidiary, effective as of the date specified above.

      6.    The Administrative Committee agrees to the adoption and
            co-sponsorship of the Plan by the Subsidiary, effective as of the
            date specified above.

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      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed this ___________ day of _______________, 2004.

                                         WESTCORP

                                         By: __________________________________

                                         WESTERN FINANCIAL ASSOCIATE SOLUTIONS

                                         By: __________________________________

                                         WESTERN FINANCIAL BANK

                                         By: __________________________________

                                         WFS FINANCIAL INC

                                         By: __________________________________

                                         WESTFIN INSURANCE AGENCY, INC.

                                         By: __________________________________

                                         WFS RECEIVABLES CORPORATION

                                         By: __________________________________

                                        3
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                                       WESTRAN SERVICES CORPORATION

                                       By: __________________________________

                                       WESTCORP ESOP AND SALARY SAVINGS PLAN

                                       By: __________________________________

                                           Shaunna Monticelli on behalf of the
                                           Administrative Committee for the Plan<PAGE>

                                                                 EXHIBIT 10.16.1

          FIRST AMENDMENT TO THE WESTCORP ESOP AND SALARY SAVINGS PLAN
                             PARTICIPATION AGREEMENT

      THIS FIRST AMENDMENT TO THE WESTCORP ESOP AND SALARY SAVINGS PLAN
PARTICIPATION AGREEMENT, among WESTCORP, a California corporation, (hereinafter
referred to as the "the Plan Sponsor"), and the following subsidiaries: WESTERN
FINANCIAL ASSOCIATE SOLUTIONS, a California corporation, WESTERN FINANCIAL BANK,
a federally chartered savings bank, WFS FINANCIAL INC, a California corporation,
WESTFIN INSURANCE AGENCY, INC., a California corporation, WFS RECEIVABLES
CORPORATION, a Nevada corporation, and WESTRAN SERVICES CORPORATION, a
California corporation (each individually referred to as "Subsidiary" and
collectively referred to as "Subsidiaries"), and the ADMINISTRATIVE COMMITTEE,
on behalf of the Westcorp ESOP and Salary Savings Plan (the "Plan"), is
effective as of December 1, 2004.

                                    RECITALS

      WHEREAS, the parties have entered into a Westcorp Executive Deferral Plan
V Participation Agreement, effective as January 1, 2004 ("Agreement");

      WHEREAS, the parties desire to amend the Agreement to include WFS
Receivables Corporation 3, a California corporation, as a "Subsidiary" to the
Agreement;

      WHEREAS, WFS Receivables Corporation 3 has been appoved by the
Administrative Committee pursuant to Section 2.13 of the Plan as an entity
eligible to sponsor the Plan; and

      WHEREAS WFS Receivables Corporation 3, pursuant to resolutions adopted by
its Board of Directors, has accepted its designation as an entity eligible to
sponsor the Plan, and has specifically indicated its desire to adopt the Plan
and be bound by its terms.

      NOW, THEREFORE, in consideration of the mutual covenants and promises
contained in the Agreement and in this Addendum and for other good and
sufficient consideration, the Agreement is amended as follows:

                                    AGREEMENT

      WFS Receivables Corporation 3 is included as a Subsidiary to the Agreement
effective as of December 1, 2004.

      Except as amended specifically herein, all terms and conditions of the
Agreement, shall remain in full force and effect.

      All capitalized terms not herein defined shall have the same meaning as
set forth in the Agreement.

      This Amendment may be executed in any number of counterparts and by
separate parties hereto on separate counterparts, each of which when executed
shall be deemed an original, but all such counterparts taken together shall
constitute one and the same instrument.

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      IN WITNESS WHEREOF, the undersigned have executed this Amendment on the
date set forth below.

WESTCORP

By: ________________________________                  Date: December __, 2004
    Thomas A. Wolfe, President

WESTERN FINANCIAL ASSOCIATE SOLUTIONS

By: ________________________________                  Date: December __, 2004
    Karen Marchak, President

WESTERN FINANCIAL BANK

By: ________________________________                  Date: December __, 2004
    Thomas A. Wolfe, President

WESTFIN INSURANCE AGENCY, INC.

By: ________________________________                  Date: December __, 2004
    Thomas A. Wolfe, President

WFS RECEIVABLES CORPORATION

By: ________________________________                  Date: December __, 2004
    John Coluccio, President

WESTRAN SERVICES CORPORATION

By: ________________________________                  Date: December __, 2004
    Shelley M. Chase, President

WESTCORP EXECUTIVE DEFERRAL PLAN V

By: ________________________________                  Date: December __, 2004
    Shaunna Monticelli on behalf of the
    Administrative Committee for the Plan

WFS RECEIVABLES CORPORATION 3

By: ________________________________                  Date: December __, 2004
    Keith Ford, Secretary<PAGE>

                                                                 EXHIBIT 10.17.2

                             SECOND AMENDMENT TO THE
                     INTEREST RATE SWAP GUARANTEE AGREEMENT

      This Second Amendment to the Interest Rate Swap Guarantee Agreement
("Second Amendment") is made effective as of August 5, 2003, by and among
Westcorp, a California corporation, Western Financial Bank, a federally
chartered bank ("WFB"), and WFS Receivables Corporation 2, a Nevada corporation
("WFSRC2"), and hereby amends the Interest Rate Swap Guarantee Agreement entered
into by the parties on May 10, 2001, as subsequently amended, with reference to
the following:

                                    RECITALS

      WHEREAS, the parties have previously entered into the original agreement
on May 10, 2001; and

      WHEREAS, the agreement was subsequently amended on March 3, 2003 (the
original agreement and first amendment is hereinafter collectively referred to
as the "Agreement");

      WHEREAS, the parties desire to amend and restate Schedule A to the
Agreement in order to update the swap agreement list;

      NOW, THEREFORE, in consideration of the mutual covenants and promises set
forth herein, and in reliance upon the recitals set forth above, the Agreement
is amended as follows:

                                    AGREEMENT

   1.    Schedule A to the Agreement is hereby amended and restated as Schedule
         A-1 and is attached hereto and is hereby incorporated and made part of
         the Agreement.

   3.    Except as specifically amended herein, all terms of the Agreement shall
         remain in full force and effect.

   4.    Capitalized terms not defined herein shall have the meanings set forth
         in the Agreement.

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      WHEREFORE, the undersigned have executed this Second Amendment on the date
set forth below to be effective as of the date first set forth above.

WESTCORP

______________________________

WESTERN FINANCIAL BANK

__________________________________

WFS RECEIVABLES CORPORATION 2, INC

__________________________________

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                                  SCHEDULE A-1

1.    Prepayment Differential Interest Rate Swap Agreements between Western
      Financial Bank and Citibank, N.A., dated as of May 9, 2001.

2.    Interest Rate Swap Agreements between Western Financial Bank and Merrill
      Lynch dated as of March 3, 2003.

3.    Interest Rate Swap Agreement between WFS Receivables Corporation 2 and
      Bank of America dated as of August 5, 2003.

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