UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC  20549


                                FORM 8-K



                            CURRENT REPORT



                PURSUANT TO SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934



    Date of Report (Date of earliest event reported) October 3, 2003



                        NICHOLAS FINANCIAL, INC.
         (Exact name of registrant as specified in its Charter)




   British Columbia, Canada         0-26680          8736-3354
  (State or Other Jurisdiction of  (Commission    (I.R.S. Employer
    Incorporation or Organization)  File Number)  Identification No.)

         2454 McMullen Booth Road, Building C
               Clearwater, Florida                    33759
      (Address of Principal Executive Offices)      (Zip Code)



                             (727) 726-0763
          (Registrant's telephone number, Including area code)


                             Not applicable
     (Former name, former address and former fiscal year, if changed
                          since last report)

<PAGE> 2

Item 4. Changes In Registrant's Certifying Accountant.

On September 30, 2003, Ernst & Young LLP advised the Company's audit
committee that, following completion of its review of the Company's
financial statements as of, and for the quarter ended September 30,
2003, it would resign as the Company's independent auditors.

Ernst & Young's reports on Nicholas' financial statements for the
years ended March 31, 2003 and 2002 did not contain an adverse opinion
or a disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope, or accounting principles.

During the fiscal years ended March 31, 2003 and 2002, and the
subsequent interim period ended September 30, 2003, there have not
been any disagreements between Nicholas and Ernst & Young on any
matter of accounting principles or practices, financial statement
disclosures, or auditing scope or procedure, which disagreements, if
not resolved to the satisfaction of Ernst & Young, would have caused
it to make reference to the subject matter of the disagreements in
connection with its reports.

Nicholas has commenced the process of retaining new independent
auditors. That process is not yet complete.

Nicholas provided Ernst & Young with a copy of the disclosures
contained in Item 4(a)(1) above. Ernst & Young's response is attached
hereto as Exhibit 16.


Item 7.    Financial Statements and Exhibits

    (c)    Exhibits

   Exhibit No.      Description of Document

      16       Letter  of  Ernst & Young dated October  2, 2003
      99       Press  release dated October 3, 2003 issued
               by the registrant

<PAGE> 3
                              SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934,
the  Registrant has duly caused this Report to be signed on its behalf
by the undersigned, hereunto duly authorized.


                       NICHOLAS FINANCIAL, INC.
                             (Registrant)


  Date: October 3, 2003         /s/ Peter L. Vosotas
                                ------------------------
                                Peter L. Vosotas
                                Chairman, President,
                                Chief  Executive Officer
                                (Principal Executive Officer)


  Date: October 3, 2003         /s/ Ralph T. Finkenbrink
                                ------------------------------
                                Ralph T. Finkenbrink
                                (Principal Financial Officer and
                                 Accounting Officer)


<PAGE> 4

                         Exhibit Index


Exhibit No.

   16          Ernst & Young consent form dated October 2, 2003
   99          Press  release dated October 3, 2003 issued
               by the registrant


<PAGE> 5

Exhibit 16
---------------


ERNST & YOUNG Ernst & Young LLP Phone: (404) 874-8300 Suite 2800
www.ey.com 600 Peachtree Street Atlanta, Georgia 30308-2215

October 2, 2003

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Gentlemen:

We have read Item 4 of Form 8-K dated October 2, 2003, of Nicholas
Financial, Inc. and are in agreement with the statements contained in
paragraphs (a)(1)(i) through (v) and (a)(3) therein. We have no basis
to agree or disagree with other statements of the registrant contained
therein.



                          /s/ Ernst & Young LLP


Ernst & Young LLP is a member of Ernst & Young International, Ltd.


<PAGE> 6

Exhibit 99
-------------



                             FOR IMMEDIATE RELEASE

Nicholas Financial, Inc.
Corporate Headquarters

2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759


Contact:  Ralph Finkenbrink
          Sr. Vice President, Finance

NASDAQ: NICK
Web site: www.nicholasfinancial.com

Ph # - 727-726-0763
Fax # - 727-726-2140




                Nicholas To Change Independent Auditors


Clearwater,  Florida,  -  October 3, 2003:  Nicholas  Financial,  Inc.
(Nasdaq,  NICK)  audit committee chairman, Alton  R.  "Charlie"  Neal,
today  announced that the Company has been advised by  Ernst  &  Young
LLP,  that the auditing firm would resign as the Company's independent
auditor  following  the  completion of its  review  of  the  Company's
financial statements for the quarter ended September 30, 2003.

During  the  fiscal  years ended March 31,  2003  and  2002,  and  the
subsequent  interim period ended September 30, 2003,  there  have  not
been  any  disagreements between Nicholas and Ernst  &  Young  on  any
matter  of  accounting  principles or practices,  financial  statement
disclosures,  or auditing scope or procedure, which disagreements,  if
not  resolved to the satisfaction of Ernst & Young, would have  caused
it  to  make  reference to the subject matter of the disagreements  in
connection with its reports.

Nicholas  Financial  is  now  in  the  process  of  retaining  a   new
independent  auditor. The Company has been assured by  Ernst  &  Young
that they will assist Nicholas in making an orderly transition to  the
firm ultimately selected by the Company's audit committee.



Founded  in  1985, with current assets of $94,853,000 as of  June  30,
2003,  Nicholas  Financial  is  one of  the  largest  publicly  traded
specialty  consumer  finance companies based  in  the  Southeast.  The
company has approximately 5,045,000 shares of common stock outstanding
and  has reported record revenues and earnings for the past 13  years.
For an index of Nicholas Financial Inc.'s news releases or to obtain a
specific release, visit our web site at www.nicholasfinancial.com.




                               ## End ##
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC  20549

                                FORM 8-K

                            CURRENT REPORT

                PURSUANT TO SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934

    Date of Report (Date of earliest event reported) October 3, 2003

                        NICHOLAS FINANCIAL, INC.
         (Exact name of registrant as specified in its Charter)

   British Columbia, Canada         0-26680          8736-3354
  (State or Other Jurisdiction of  (Commission    (I.R.S. Employer
    Incorporation or Organization)  File Number)  Identification No.)

         2454 McMullen Booth Road, Building C
               Clearwater, Florida                    33759
      (Address of Principal Executive Offices)      (Zip Code)

                             (727) 726-0763
          (Registrant's telephone number, Including area code)

                             Not applicable
     (Former name, former address and former fiscal year, if changed
                          since last report)
2

Item 4. Changes In Registrant's Certifying Accountant.

On September 30, 2003, Ernst & Young LLP advised the Company's audit
committee that, following completion of its review of the Company's
financial statements as of, and for the quarter ended September 30,
2003, it would resign as the Company's independent auditors.

Ernst & Young's reports on Nicholas' financial statements for the
years ended March 31, 2003 and 2002 did not contain an adverse opinion
or a disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope, or accounting principles.

During the fiscal years ended March 31, 2003 and 2002, and the
subsequent interim period ended September 30, 2003, there have not
been any disagreements between Nicholas and Ernst & Young on any
matter of accounting principles or practices, financial statement
disclosures, or auditing scope or procedure, which disagreements, if
not resolved to the satisfaction of Ernst & Young, would have caused
it to make reference to the subject matter of the disagreements in
connection with its reports.

Nicholas has commenced the process of retaining new independent
auditors. That process is not yet complete.

Nicholas provided Ernst & Young with a copy of the disclosures
contained in Item 4(a)(1) above. Ernst & Young's response is attached
hereto as Exhibit 16.

Item 7.    Financial Statements and Exhibits

    (c)    Exhibits

   Exhibit No.      Description of Document

      16       Letter  of  Ernst & Young dated October  2, 2003
      99       Press  release dated October 3, 2003 issued
               by the registrant
3
                              SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934,
the  Registrant has duly caused this Report to be signed on its behalf
by the undersigned, hereunto duly authorized.

                       NICHOLAS FINANCIAL, INC.
                             (Registrant)

  Date: October 3, 2003         /s/ Peter L. Vosotas
                                ------------------------
                                Peter L. Vosotas
                                Chairman, President,
                                Chief  Executive Officer
                                (Principal Executive Officer)

  Date: October 3, 2003         /s/ Ralph T. Finkenbrink
                                ------------------------------
                                Ralph T. Finkenbrink
                                (Principal Financial Officer and
                                 Accounting Officer)
4

                         Exhibit Index

Exhibit No.

   16          Ernst & Young consent form dated October 2, 2003
   99          Press  release dated October 3, 2003 issued
               by the registrant
5

Exhibit 16
---------------

ERNST & YOUNG Ernst & Young LLP Phone: (404) 874-8300 Suite 2800
www.ey.com 600 Peachtree Street Atlanta, Georgia 30308-2215

October 2, 2003

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Gentlemen:

We have read Item 4 of Form 8-K dated October 2, 2003, of Nicholas
Financial, Inc. and are in agreement with the statements contained in
paragraphs (a)(1)(i) through (v) and (a)(3) therein. We have no basis
to agree or disagree with other statements of the registrant contained
therein.

                          /s/ Ernst & Young LLP

Ernst & Young LLP is a member of Ernst & Young International, Ltd.
6

Exhibit 99
-------------

                             FOR IMMEDIATE RELEASE

Nicholas Financial, Inc.
Corporate Headquarters

2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

Contact:  Ralph Finkenbrink
          Sr. Vice President, Finance

NASDAQ: NICK
Web site: www.nicholasfinancial.com

Ph # - 727-726-0763
Fax # - 727-726-2140

                Nicholas To Change Independent Auditors

Clearwater,  Florida,  -  October 3, 2003:  Nicholas  Financial,  Inc.
(Nasdaq,  NICK)  audit committee chairman, Alton  R.  "Charlie"  Neal,
today  announced that the Company has been advised by  Ernst  &  Young
LLP,  that the auditing firm would resign as the Company's independent
auditor  following  the  completion of its  review  of  the  Company's
financial statements for the quarter ended September 30, 2003.

During  the  fiscal  years ended March 31,  2003  and  2002,  and  the
subsequent  interim period ended September 30, 2003,  there  have  not
been  any  disagreements between Nicholas and Ernst  &  Young  on  any
matter  of  accounting  principles or practices,  financial  statement
disclosures,  or auditing scope or procedure, which disagreements,  if
not  resolved to the satisfaction of Ernst & Young, would have  caused
it  to  make  reference to the subject matter of the disagreements  in
connection with its reports.

Nicholas  Financial  is  now  in  the  process  of  retaining  a   new
independent  auditor. The Company has been assured by  Ernst  &  Young
that they will assist Nicholas in making an orderly transition to  the
firm ultimately selected by the Company's audit committee.

Founded  in  1985, with current assets of $94,853,000 as of  June  30,
2003,  Nicholas  Financial  is  one of  the  largest  publicly  traded
specialty  consumer  finance companies based  in  the  Southeast.  The
company has approximately 5,045,000 shares of common stock outstanding
and  has reported record revenues and earnings for the past 13  years.
For an index of Nicholas Financial Inc.'s news releases or to obtain a
specific release, visit our web site at www.nicholasfinancial.com.

                               ## End ##