Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 144

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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 period and to
more than eight over the life of the contract. The only modification of terms is to advance the obligor’s next due date by one month
and extend the maturity date of the receivable by one month. In some cases, a two-month extension may be granted. There are no other concessions
such as a reduction in interest rate, forgiveness of principal or of accrued interest. 

The
basic question in deciding to grant an extension is whether or not we will (a) be delaying the inevitable repossession and liquidation
or (b) risk losing the vehicle as a result of not being able to locate the obligor and vehicle. In both of those situations, the loss
would likely be higher than if the vehicle had been repossessed without the extension. The benefits of granting an extension include minimizing
current losses and delinquencies, minimizing lifetime losses, getting the obligor’s account current (or close to it) and building
goodwill so that the obligor might prioritize us over other creditors on future payments. Our servicing staff are trained to identify
when a past due obligor is facing a temporary problem that may be resolved with an extension. In some cases, the extension will be granted
in conjunction with our receiving all or a portion of a past due payment from the obligor, thereby indicating an additional monetary and
psychological commitment to the contract on the obligor’s part.

The
credit assessment for granting an extension is initially made by our collector, who bases the recommendation on the collector’s
discussions with the obligor. In such assessments the collector will consider, among other things, the following factors: (1) the reason
the obligor has fallen behind in payment; (2) whether or not the reason for the delinquency is temporary, and if it is, have conditions
changed such that the obligor can begin making regular monthly payments again after the extension; (3) the obligor's past payment history,
including past extensions if applicable; (4) the obligor’s willingness to communicate and cooperate on resolving the delinquency;
and (5) a numeric score from our internal risk assessment system that indicating the likelihood that the extension will prove beneficial.
If the collector believes the obligor is a good candidate for an extension, an approval is obtained from a supervisor, who will review
the same factors stated above prior to offering the extension to the obligor. After receiving an extension, an account remains subject
to our normal policies and procedures for interest accr