Company: CPSS
Filing Date: 2025-03-26
Form Type: 424B2
Source: 0001683168-25-001896
Chunk: 27

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-26
Form: 424B2
Chunk 27
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 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 operations,
financial condition and stock price. In addition, new federal and state laws or regulations or changes in the ways that existing rules
or laws are interpreted or enforced could limit our activities in the future or significantly increase the cost of compliance. Furthermore,
judges or regulatory bodies could interpret current rules or laws differently than the way we do, leading to such adverse consequences
as described above. The resolution of such matters may require considerable time and expense, and if not resolved in our favor, may result
in fines or damages, and possibly an adverse effect on our financial condition.

We believe that we are in
compliance in all material respects with all such laws and regulations, and that such laws and regulations have had no material adverse
effect on our ability to operate our business. However, we may be materially and adversely affected if we fail to comply with:

| · | applicable laws and regulations;                                      |
| · | changes in existing laws or regulations;                              |
| · | changes in the interpretation of existing laws or regulations; or     |
| · | any additional laws or regulations that may be enacted in the future. |

Changes in law and regulations may have an adverse effect on our business.

Existing law, regulations
and interpretations may change in ways that increase our costs of compliance. In addition to direct costs, such compliance requires forms,
processes, procedures, controls and in the infrastructure to support these requirements. Compliance may create operational constraints
and place limits on pricing. Laws in the financial services industry are designed primarily for the protection of consumers. The failure
to comply could result in significant statutory civil and criminal penalties, monetary damages, attorneys’ fees and costs, possible
revocation of licenses and damage to reputation, brand and valued customer relationships.

| 21 |

At this time, it is difficult
to predict the extent to which new regulations or amendments will affect our business. However, compliance with these new laws and regulations
may result in additional cost and expenses, which may adversely affect our results of operations, financial condition or liquidity. For
example, as governments, investors and other stakeholders face pressures to accelerate actions to address climate change and other environmental,
governance and social topics, governments may implement regulations or investors and other stakeholders may adopt new investment policies
or otherwise impose new expectations