United Security Bancshares Questioning Irregularities

Acceptance Loan Co., a subsidiary of United Security Bancshares, is under investigation for auto loan fraud. If fraud is proved, they could be looking at totals of at least $3.8 million in auto loan fraud. United has started an internal investigation into Acceptance to see if the claim that fraudulent auto loans, and fraudulent handling of repossessed autos is true.

United says that so far the allegations are linked to two of Acceptance’s branches in North Alabama. The allegations say that the banks made improper or fraudulent auto loans, and then handled the repossession of the automobiles from the auto loans improperly, or even fraudulently.

United has hired an outside forensic accountant and outside legal council to look into the matter of the auto loans, and when the review is completed they say that they will make the results known. The bank says that they do not know what will be recoverable from the losses, and what will be covered by their insurance policies. They are also looking into “potential additional losses” because of the delinquencies that have not been identified.

The President and CEO of the company said that they were doing everything in their power to get to the root of the auto loan fraud, and that they were performing a “full and complete investigation” for their shareholders. They will continue to perform their usual duties and offer their customers service and quality while the investigation is ongoing.

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