Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 17

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 17
---
 delinquency
aging categories shown in the tables reflect the effect of extensions.

(3)Amount in repossession represents the contract balance on financed vehicles that have been repossessed but not yet liquidated.

(4)We do not recognize interest income on accounts past due more than 90 days.

 9 

Net Credit Loss Experience
(1)

Total Managed Portfolio
(Excludes Third Party Portfolio)

    Year Ended December 31, 

    2024  
    2023  
    2022 

    (Dollars in thousands) 

    Average portfolio outstanding 
    $3,209,988  
    $2,913,571  
    $2,539,110 
  
    Net charge-offs as a percentage of average portfolio (2) 
     7.6%  
     6.5%  
     4.5% 

(1)All amounts and percentages are based on the principal amount scheduled to be paid on each automobile contract contracts. The information
in the table represents all automobile contracts we service, excluding certain contracts we have serviced for third parties on which we
earn servicing fees only, and have no credit risk.

(2)Net charge-offs include the remaining principal balance, after the application of the net proceeds from the liquidation of the
vehicle (excluding accrued and unpaid interest) and amounts collected after the date of charge-off, including some recoveries which have
been classified as other income in the accompanying financial statements.

Extensions

In certain circumstances we
will grant obligors one-month payment extensions to assist them with temporary cash flow problems. In general, an obligor will not be
permitted more than two such extensions in any 12-month period and no more than eight over the life of the contract. The only modification
of terms is to advance the obligor’s next due date, generally by one month, though in some cases we may permit a longer extension,
and in any case an advance in the maturity date corresponding to the advance of the due date. There are no other concessions such as a
reduction in interest rate, forgiveness of principal or of accrued interest. Accordingly, we consider such extensions to be insignificant
delays in payments.

The basic question in deciding to grant an extension
is whether we will (a) be delaying an inevitable repossession and liquidation or (b) risk losing the vehicle as a result of not being
able to locate the obligor and vehicle.