Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1677

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 9B
Chunk 1677
---
 cash flows from operating leases 
    $5,308 
    $5,547 
    $7,056
  
    Operating cash flows from finance leases 
     97  
     152  
    948 
  
    Financing cash flows from finance leases 
     18  
     6  
     40 

Legal Proceedings

Consumer
Litigation. We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both
continuing and discontinued. Consumers can and do initiate lawsuits against us alleging violations of law applicable to collection of
receivables, and such lawsuits sometimes allege that resolution as a class action is appropriate. For the most part, we have legal and
factual defenses to consumer claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances
of each case.

Following our
filing of a complaint for a deficiency judgment in the Superior Court at Waterbury, Connecticut, the defendant filed a cross-claim on
October 16, 2019 alleging that our deficiency notices were not compliant with Connecticut law, and seeking relief on behalf of a class
of Connecticut obligors whose vehicles we had repossessed. The complaint seeks primarily damages, injunctive relief, waiver of contract
deficiencies, and attorney fees and interest. The defendant’s contract provided for resolution of disputes exclusively by arbitration,
and exclusively on an individual basis, not a class basis. Nevertheless, in August 2021, the court denied our motion to compel arbitration,
without opinion. In April 2024, a motion for certification of a class was filed. Prior to the motion being ruled upon, summary judgment
was granted in our favor, disposing of the claims against CPS. An appeal of the summary judgment ruling was filed on October 25, 2024
and a cross appeal of the denial of the motion to compel arbitration was filed on October 31, 2024.

In General.
There can be no assurance as to the outcomes of the matters described or referenced above. We record at each measurement date, most recently
as of December 31, 2024, our best estimate of probable incurred losses for legal contingencies, including the matters identified above.
The amount of losses that may ultimately be incurred cannot be estimated with certainty. However, based on such information as is available
to us, we believe that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described
or identified above, as