Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 12

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 12
---
 and frequent contact with delinquent customers; educating customers as to the importance
of making payments according to their contract schedule; and employing a consultative and customer service approach to assist the customer
in meeting his or her obligations, which includes attempting to identify the underlying causes of delinquency and cure them whenever possible.
In support of our collection activities, we maintain a computerized collection system specifically designed to service automobile contracts
with sub-prime customers. We engage a nearshore third-party call center to supplement the efforts the collectors in our five branch locations.
As of December 31, 2024, our nearshore partner had approximately 47 agents assigned to our portfolio.

 7 

We attempt to make telephonic
contact with delinquent customers from one to 20 days after their monthly payment due date, depending on our risk-based assessment of
the customer’s likelihood of payment during early stages of delinquency. If a customer has authorized us to do so, we may also send
automated text message reminders at various stages of delinquency and our collectors may also choose to contact a customer via text message
instead of, or in addition to, via telephone. Our customers can contact us via a toll-free number where they may choose to speak with
a collector or to use our automated voice response system to access information about their account or to make a payment. They may respond
to our collector’s text messages or chat with one of our collectors while logged into our website. Our contact priorities may be
based on the customers’ physical location, stage of delinquency, size of balance or other parameters. Our collectors inquire of the customer
the reason for the delinquency and when we can expect to receive the payment. The collector attempts to get the customer to make a payment
or a promise for the payment for a time generally not to exceed one week from the date of the call. If the customer makes such a promise,
the account is routed to a promise queue and is not contacted until the outcome of the promise is known. If the payment is made by the
promise date and the account is no longer delinquent, the account is routed out of the collection system. If the payment is not made,
or if the payment is made, but the account remains delinquent, the account is returned to a collector’s queue for subsequent contacts.

If a customer fails to make
or keep promises for payments, or if the customer is uncooperative or attempts to evade contact or hide the