According to the automotive Web site autoremarketing.com, Universal Underwriters Acceptance Corp. has notified its dealer clients about its plans to exit the subprime financing market after seven years in the business. This, says the site, is according to Diana Eisman, communications manager for Universal Underwriters Group, the parent company of UUAC.

The site reported that Eisman said UUAC will stop accepting contracts after July 22 and will offer funding through Aug. 6. UUAC sent letters in the mail to its hundreds of dealer clients in 47 states during the week of June 10 explaining that the close-down may require up to four years to complete, Eisman said.

According to autoremarketing.com, after reevaluating the marketability and profitability of its product offerings, Eisman said UUG, also a large property and casualty insurance provider to dealers, decided to end its four subprime products due to the company's "lack of positive financial returns."

Eisman said UUAC will continue to collect on its accounts based on each dealer's service agreement. The company will also retain the appropriate staff to support its dealer clients during this transition, she said, according to the site.

Eisman added that UUG is in solid financial shape, reported the site.