Company: CPSS
Filing Date: 2025-06-30
Form Type: 11-K
Source: 0001683168-25-004829
Chunk: 4

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-06-30
Form: 11-K
Chunk 4
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 are an integral part of
these financial statements.</div>

| 4 |

<div align='center'>CONSUMER PORTFOLIO SERVICES, INC. 401(K) PLAN

Notes to Financial Statements

December 31, 2024, and 2023</div>

(1) Description
of the Plan

The following description of the Consumer
Portfolio Services, Inc. (the “Plan Sponsor” or “CPS, Inc.”) 401(k) Plan (the “Plan”) provides only
general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.

| (a) | General |

The Plan was established as a profit
sharing plan with cash or deferred arrangement on January 1, 1994. The Plan was restated as of January 1, 1996, to permit investment in
the Plan Sponsor’s common stock without regard to Section 407(a) of the Employee Retirement Income Security Act of 1974 (“ERISA”).
Effective January 1, 2003, the Plan Sponsor adopted the MassMutual Life Insurance Company Flexinvest® Prototype Non-Standardized 401(k)
Profit Sharing Plan. During 2012, the Plan was amended to allow for automatic enrollment with automatic deferral contributions of 3% of
eligible compensation of employees eligible to participate in the Plan, unless otherwise elected by such employees. Effective January
1, 2017, the Plan was amended to automatically increase participant contributions by 1% on the employee’s anniversary date each
year forward, unless the employee opts out. The Plan is a defined contribution plan which provides retirement benefits for eligible employees
of the Plan Sponsor. It is subject to the provisions of ERISA.

On January 4, 2021, MassMutual Life
Insurance Company, the custodian and record-keeper for the Plan, was acquired by Empower Retirement (“Empower”).

| (b) | Administration of the Plan |

The Plan is administered by the Human
Resources Department (the “Plan Administrator”) of the Plan Sponsor. The Plan Administrator consults with the Benefits Committee
and other key management of the Plan Sponsor when managing the operations and the administration of the Plan. The Plan is operated under
an agreement which requires that Empower hold and distribute the funds of the Plan in accordance with the text of the Plan and the instructions
of the Plan Administrator or its designees.

| (c) | Eligibility and Contributions |

Employees are eligible to participate