Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 14

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 14
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 be less than 90 days delinquent. Any payments received by a borrower, regardless of their stage
of delinquency are first applied to outstanding accrued interest and then to principal reduction.

We generally charge off the
balance of any contract by the earlier of the end of the month in which the automobile contract becomes five scheduled installments past
due or, in the case of repossessions, the month after we receive the proceeds from the liquidation of the financed vehicle or if the vehicle
has been in repossession inventory for more than three months. In the case of repossession, the amount of the charge-off is the difference
between the outstanding principal balance of the defaulted automobile contract and the net repossession sale proceeds.

Credit Experience

Our primary method of monitoring
ongoing credit quality of our portfolio is to closely review monthly delinquency, default and net charge off activity and the related
trends. Our internal credit performance data consistently show that new receivables have lower levels of delinquency and losses early
in their lives, with delinquencies increasing throughout their lives and incremental losses gradually increasing to a peak around 18
months, after which they gradually decrease. The weighted average seasoning of our total owned portfolio, represented in the tables below,
was 17 months, 19 months, and 17 months as of December 31, 2024, December 31, 2023, and December 31, 2022, respectively. Our financial
results are dependent on the performance of the automobile contracts in which we retain an ownership interest. Broad economic factors
such as recessions and significant changes in unemployment levels influence the credit performance of our portfolio, as does the weighted
average age of the receivables at any given time. The tables below document the delinquency, repossession, and net credit loss experience
of all such automobile contracts that we own as of the respective dates shown.

 8 

Delinquency, Repossession
and Extension Experience

    December 31, 2024  
    December 31, 2023  
    December 31, 2022 

    Number of  
       
    Number of  
       
    Number of  

    Contracts  
    Amount  
    Contracts  
    Amount  
    Contracts  
    Amount 
  
    Delinquency Experience 
    (Dollars in thousands) 
  
    Gross servicing portfolio (1) 
     201,441