Company: CPSS
Filing Date: 2025-08-22
Form Type: 424B2
Source: 0001683168-25-006421
Chunk: 30

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-22
Form: 424B2
Chunk 30
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 from interruptions in our service
as a result of system failures. Such systems problems could materially and adversely affect our results of operations, financial conditions
and cash flows.

A breach in the security of our systems could result in the disclosure of confidential information or subject us to liability.

We hold in our systems confidential
financial and other personal data with respect to our customers, which may be of value to identity thieves and others if revealed. Although
we endeavor to protect the security of our computer systems and the confidentiality of customer information entrusted to us, there can
be no assurance that our security measures will provide adequate security.

It is possible that we may not
be able to anticipate, detect or recognize threats to our systems or to implement effective preventive measures against all security breaches,
especially because the techniques used change frequently or are not recognized until launched, because of the rising use of artificial
intelligence, and because cyberattacks can originate from a wide variety of sources, including third parties outside the Company
such as persons who are associated with external service providers or who are or may be involved in organized crime or linked to terrorist
organizations.

Such persons may also attempt
to fraudulently induce employees or other users of our systems to disclose sensitive information in order to gain access to our data or
that of our customers.

These risks may increase
in the future as we continue to increase our mobile-payment and other internet-based product offerings and expand our use of web or cloud-based
products and applications.

A successful penetration of the
security of our systems could cause serious negative consequences, including disruption of our operations, misappropriation of confidential
information, or damage to our computers or systems, and could result in violations of applicable privacy and other laws, financial loss
to us or to our customers, customer dissatisfaction, significant litigation and regulatory exposure and harm to our reputation, any or
all of which could have a material adverse effect on us.

Because we are subject to many restrictions in our existing credit facilities and securitization transactions, our results of operations or ability to engage in specified transactions may be impaired.

The terms of our existing
credit facilities, term securitizations and our other outstanding debt impose significant operating and financial restrictions on us and
our subsidiaries and require us to meet certain financial tests. These restrictions may have an adverse effect on our business activities,
results of operations and financial condition. These restrictions may also significantly limit or prohibit us from engaging in certain
transactions, including the following:

| · | incurring or guaranteeing additional indebtedness;