Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 47

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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lected subsequent to the date of charge-off, including some recoveries which have been classified as other income in the accompanying
interim consolidated financial statements. March 31, 2025, and March 31, 2024, percentages represent three months ended March 31, 2025,
and March 31, 2024,, annualized. December 31, 2024, represents 12 months ended December 31, 2024.

Extensions

In
certain circumstances we will grant obligors one-month payment extensions to assist them with temporary cash flow problems. In general,
we are bound by our securitization agreements to refrain from agreeing to more than two such extensions in any 12-month 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,