Reliance Acceptance Group Inc. said it would report a fourth-quarter loss due to an increased provision for credit losses.

The subprime auto lender, formerly known as Cole Taylor Financial Group, increased its provision due to "problem loans." Though Reliance did not quantify the "significant provisions," it said it would maintain $100 million in market capital.

Reliance increased its loan-loss reserve by 400%, compared with the 1995 level, in the first nine months of 1996; its annualized net chargeoff ratio and delinquency rate doubled, according to Gimme Credit, a Chicago newsletter that tracks credit quality.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.