A string of setbacks for a subprime auto lender has one analyst wondering whether its relationship with a life insurance company that has been its prime benefactor could be headed for the scrap heap.

General Acceptance Corp., a Bloomington, Ind., company that makes car loans to people with bruised credit, declared after trading closed Friday that it had defaulted on a $70 million line of credit provided by GE Capital Corp. and violated loan covenants.

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