Consumer complaint received 2026-02-16 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Loan sold or transferred to another company
Company: Consumer Portfolio Services, Inc.
State: TX

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Consumer Portfolio Services, Inc. (CPS) became the loan holder and servicer. The first payment was due \n\nXXXX XXXX XXXX\nAfter purchase, I later discovered material facts that were not disclosed at the time of sale or financing. Specifically, I confirmed through BMW and VIN/title records that the vehicle was originally a Canadian-market vehicle that had been sold and operated in Canada prior to entering the United States. This Canadian-market origin materially affects regulatory classification, recall applicability, labeling compliance, resale value, and warranty eligibility, and was not disclosed during the transaction.\n\nVIN history records confirm the vehicle was listed for sale on XXXX XXXX XXXX in XXXX XXXX, Canada at approximately 57,555 miles. Title and registration records confirm subsequent transfers, including Arkansas registration on XXXX XXXX XXXX at approximately 57,765 miles and Texas registration on XXXX XXXX XXXX at approximately 58,877 miles. Texas Auto appears in the title chain prior to selling the vehicle to me, confirming dealer handling and ownership prior to the transaction while failing to disclose the vehicles Canadian-market origin.\nRecall records also confirm Canadian regulatory recall history associated with the vehicles classification.\n\nOn XXXX XXXX XXXX immediately after confirming the vehicles Canadian-market origin with XXXX  and VIN documentation, I formally notified CPS of the undisclosed Canadian-market origin and invoked rescission rights.\n\nFollowing CPSs failure to resolve the issue, CPS issued settlement demands requiring surrender of the vehicle under unfavorable conditions. Around XXXX XXXX, CPS offered approximately XXXX in exchange for surrender of the vehicle. CPS later issued a formal written settlement demand requiring surrender of the vehicle and payment of XXXX  to close the account.\n\nIn response, I issued formal written rescission and dispute notices via certified mail and FedEx overnight delivery to CPS executive leadership and legal counsel.\n\nThese notices were sent as follows:\n XXXX Overnight and XXXX  2-Day deliveries sent XXXX XXXX XXXX\n Certified Mail sent XXXX XXXX XXXXn Certified Mail Tracking Number: XXXX XXXX XXXX XXXX XXXX XXXX\nNotices were sent to:\n\nConsumer Portfolio Services, Inc.\nExecutive Office  CEO Office\nXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX\nConsumer Portfolio Services, Inc.\nLegal Department and General Counsel\nXXXX XXXX XXXX XXXX XXXX XXXX XXXX\n\nAll deliveries were successfully completed and signed for, confirming CPS received formal rescission and dispute notice.\n\nIn these notices, I formally requested:\n Full rescission of the transaction\n Validation of CPSs authority to enforce the contract\n Complete account validation\n Cessation of collection activity\n Correction of any credit reporting\n\nDespite confirmed receipt of formal legal dispute and rescission notices, CPS failed to resolve the dispute or provide validation.\n\nInstead, on XXXX XXXX XXXX, CPS resumed collection activity and issued a collection notice and reported negative information to credit bureaus, confirming continued enforcement activity after receiving certified legal dispute and rescission notice.\nThis continued collection activity and credit reporting occurred despite CPS having actual knowledge of the dispute, rescission demand, and validation request.\n\nCPS has failed to properly investigate the dispute, failed to provide requested documentation, and has continued enforcement actions on a contract involving material undisclosed facts affecting the vehicle and transaction.\nI am requesting CFPB assistance to investigate CPSs conduct, require validation and corrective action, and require CPS to properly resolve the disputed account.'

Company response to consumer: Closed with explanation