Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 183

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 183
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 employment agreement. Our future operating results also depend in part
upon our ability to attract and retain qualified management, technical, sales and support personnel for our operations. Competition for
such personnel is intense. We cannot assure you that we will be successful in attracting or retaining such personnel. Conversely, adverse
general economic conditions may have had a countervailing effect. The loss of any key employee, the failure of any key employee to perform
in his or her current position or our inability to attract and retain skilled employees, as needed, could materially and adversely affect
our results of operations, financial condition and cash flow.

If We Fail to Comply with Regulations, Our Results of Operations
May Be Impaired.

Failure to materially comply
with all laws and regulations applicable to us could materially and adversely affect our ability to operate our business. Our business
is subject to numerous federal and state consumer protection laws and regulations, which, among other things:

·require us to obtain and maintain certain licenses and qualifications;

·limit the interest rates, fees and other charges we are allowed to charge;

·limit or prescribe certain other terms of our automobile contracts;

·require specific disclosures to our customers;

·define our rights to repossess and sell collateral; and

·maintain safeguards designed to protect the security and confidentiality of customer information.

Our industry is also at times
investigated by regulators and offices of state attorneys general, which could lead to enforcement actions, fines and penalties, or the
assertion of private claims and lawsuits against us. The Consumer Financial Protection Bureau (“CFPB”) and the Federal Trade
Commission (“FTC”) have the authority to investigate consumer complaints against us, to conduct inquiries at their own instance,
and to recommend enforcement actions and seek monetary penalties. The FTC has conducted and concluded an inquiry into our practices, and
proposed remedial action against us in 2014, to which we consented. The CFPB has adopted regulations that place us and other companies
similar to us under its supervision. A host of state and local governmental agencies have jurisdiction over material portions of our business,
and might take action adverse to us. No assurance can be given as to whether any of such hypothetical proceedings might materially and
adversely affect us.

 23 

If we fail to comply with
applicable laws and regulations, such failure could result in penalties, litigation losses and expenses, damage to our reputation, or
the suspension or termination of our licenses to conduct business, which would materially adversely affect our results of