SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


Date  of  Report  (Date  of  earliest  event  reported)     JULY  2,  2001

                     PACIFIC  SECURITY  FINANCIAL,  INC.
       (Exact  name  of  registrant  as  specified  in its charter)

        WASHINGTON                 0-6673                    91-0669906
(State or other jurisdiction     (Commission               (IRS Employer
of  incorporation)               File  Number)             Identification
No.)


     N.  10  POST  STREET  325  PEYTON  BUILDING     SPOKANE,  WA  99201
                    (Address  of  principal  executive  offices)

Registrant's  telephone  number,  including  area  code    (509)  444-7700

                                     N/A
       (Former  name  or  former  address, if changed since last report)






























ITEM  4.  CHANGES  IN  REGISTRANT'S  CERTIFYING  ACCOUNTANTS.

(a)

On  July  2,  2001,  the  Registrant  dismissed  PricewaterhouseCoopers LLP, the
Registrant's  independent  accountants  (the  "Former  Accountants")  due to the
closure  of  their  local  Spokane,  Washington  office.

The  principal accountant's reports on the financial statements for the past two
years  have contained no adverse opinion or disclaimer of opinion, nor were they
modified  as  to  uncertainty,  audit  scope,  or  accounting  principles.

There  were  no  disagreements  with  the  former  accountants  on any matter of
accounting  principles or practices, financial statement disclosure, or auditing
scope  or  procedure,  which,   if  not  resolved  to   the  former  accountants
satisfaction,  would  have  caused it to make reference to the subject matter of
the  disagreement(s)  in  connection  with  its  report.

The  Registrant  has  complied  with  the  requirements  of  Item  304(a)(3)  of
Regulation  SB with regard to providing the former accountant with a copy of the
disclosure  it  is  making in response to this Item and has requested the former
accountant  to  furnish  a letter addressed to the Commission stating whether it
agrees  with the statements made by the Issuer and, if not, stating the respects
in  which  it  does  not agree.  The letter addressed to the Commission from the
former  accountant  stating  whether  it  agrees with the statements made by the
Registrant  and,  if  not,  stating  the  respects in which it does not agree is
attached  hereto  as  Exhibit  16.01.

The  change  in  accountants  was  approved  by  the  board  of  directors.

(b)

On  July  6,  2001  the  Registrant  engaged the accounting firm Moss Adams LLP.
During  the years ended July 31, 2000 and 1999, the Company did not consult with
Moss  Adams  LLP  regarding:  (I)  the application of accounting principles to a
specified  transaction;  (ii)  the type of opinion that might be rendered on the
Company's  Financial  Statements;  or (iii) any matter that was the subject of a
disagreement  with  the Registrant's former accountant or a reportable event (as
contemplated  by  Item  304  of  Regulation  SK)

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.


                         PACIFIC  SECURITY  FINANCIAL,  INC.

                                            /s/ David L. Guthrie
Date:     July  9,  2001               By: ---------------------
                                       David  L.  Guthrie,  President