Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 40

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 40
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 as servicer upon the occurrence of certain events, including:

·our failure generally to observe and perform our responsibilities and other covenants;

·certain bankruptcy events; or

·the occurrence of certain events of default under the documents governing the facilities.

The loss of our servicing
rights could materially and adversely affect our results of operations, financial condition and cash flows. Our results of operations,
financial condition and cash flow, would be materially and adversely affected if we were to be terminated as servicer with respect to
a material portion of our managed portfolio.

If We Lose Key Personnel, Our Results of Operations May Be Impaired.

Our senior management team
averages over 20 years of service with us. Our future operating results depend in significant part upon the continued service of
our key senior management personnel, none of whom is bound by an 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