Company: CPSS
Filing Date: 2025-05-23
Form Type: 424B2
Source: 0001683168-25-003971
Chunk: 30

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-23
Form: 424B2
Chunk 30
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 as the assignee of finance contracts originated by dealers, may also be named as a co-defendant
in lawsuits filed by consumers principally against dealers. We are also subject to other litigation common to the automobile industry
and to businesses in general. The damages and penalties claimed by consumers and others in these types of matters can be substantial.
The relief requested by the plaintiffs varies but includes requests for compensatory, statutory and punitive damages.

While we intend to vigorously
defend ourselves against such proceedings, there is a chance that our results of operations, financial condition and cash flows could
be materially and adversely affected by unfavorable outcomes.

Negative publicity associated with litigation, governmental investigations, regulatory actions, and other public statements could damage our reputation.

From time to time there are
negative news stories about the “sub-prime” credit industry. Such stories may follow the announcements of litigation or regulatory
actions involving us or others in our industry. Negative publicity about our alleged or actual practices or about our industry generally
could adversely affect our stock price and our ability to retain and attract employees, which could in turn negatively affect our results
of operations or cashflows, which could affect our ability to pay the Notes.

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If we experience problems with our originations, accounting or collection systems, our results of operations may be impaired.

We are dependent on our receivables
originations, accounting and collection systems to service our portfolio of automobile contracts. We also rely on third-party service
providers to facilitate certain aspects of our business. Our systems and the systems of our third-party service providers are vulnerable
to damage or interruption from natural disasters, power loss, telecommunication failures, terrorist attacks, cyberattacks, computer viruses
and other events. A significant number of our systems are not redundant, and our disaster recovery planning is not sufficient for every
eventuality. Our systems are also subject to break-ins, sabotage and intentional acts of vandalism by internal employees and contractors
as well as third parties. Our third-party service providers face similar threats. Despite any precautions we may take, such problems could
result in interruptions in our services, litigation, and regulatory exposure, which could harm our reputation and financial condition.
We do not carry business interruption insurance sufficient to compensate us for losses that may result 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