Consumer complaint received 2025-09-11 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Deficiency balance after repossession
Company: Consumer Portfolio Services, Inc.
State: MN

Complaint narrative:
This complaint is a continuation of CFPB Case ID XXXX, which was closed without resolving the core issues. CPSs prior response contained false or unsupported claims, and I am submitting new evidence and clarifications. 

I strongly dispute CPSs response. Their statements remain misleading and unsupported by documentation, and their handling of this account raises serious legal and ethical concerns. 

Contradictory Valuation CPS financed this vehicle in XX/XX/XXXX for {$10000.00}. By approving financing, CPS acknowledged the collateral was worth at least that much. XXXX months later, XXXX claims the same vehicle was worth only {$5000.00} at auction. This is an irreconcilable contradiction. Either CPS knowingly financed an overpriced loan, or CPS conducted a commercially unreasonable sale under UCC 9-610. In either case, the claimed deficiency is not enforceable. 

Failure to Mitigate Damages My wife passed away in XX/XX/XXXX, XXXX months after purchase. I notified CPS immediately that I wished to return the vehicle. CPS refused to act at that time. By delaying until repossession in XX/XX/XXXX, CPS caused avoidable depreciation, reducing the value by more than 50 % in less than a year. That loss is a direct result of CPSs inaction.

Alleged Voluntary Surrender Agreement CPS asserts that I signed a voluntary surrender agreement on XX/XX/XXXX. I do not recall signing such an agreement. If one exists, it would have been signed under extreme grief just days after my wifes death. That is not meaningful consent. Regardless, even a surrender agreement does not release CPS from its obligation to conduct a commercially reasonable sale or mitigate damages. 

Notice of Sale ( XX/XX/XXXX ) CPS claims they mailed a notice of sale. If such a notice exists, it was not sent certified and CPS has provided no USPS proof of mailing. Without proof of proper delivery, CPS can not establish compliance with UCC 9-611. The fact that I may now have a copy in my possession does not cure their failure to provide legally sufficient notice at the time.

Continued Communications to Deceased Co-Borrower Despite being informed of my wifes death in XX/XX/XXXX, CPS continued sending correspondence addressed to her. This is not only insensitive but constitutes false and deceptive collection activity under the FDCPA. 

Summary : CPSs response is internally inconsistent and ethically flawed. They financed a vehicle at {$10000.00}, ignored my attempt to return it after my wifes death, delayed repossession for XXXX months, then claimed it was worth only {$5000.00} at auction. CPS has failed to provide proof of a valid surrender agreement, proof of mailing the notice of sale, or justification for the massive valuation drop. Their actions demonstrate bad faith lending, failure to mitigate damages, and violations of both UCC requirements and the FDCPA.

I request that CFPB require CPS to produce : The alleged surrender agreement with timestamp and authentication ; Full proof of mailing for the XX/XX/XXXX notice of sale ; Documentation explaining how a {$10000.00} vehicle dropped to {$5000.00} in XXXX year despite being in excellent condition. 

Without this evidence, CPSs deficiency claim should not stand.

Company response to consumer: Closed with explanation