Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an auto finance company headquartered in Irvine, California. It is a publicly traded company that focuses on purchasing, securitizing, and servicing non-prime and subprime automobile loans. It works with automobile dealerships across the United States to acquire loan contracts from consumers who do not qualify for conventional auto financing.

Consumer Portfolio Services does not operate dealerships. Its role is to acquire auto loan contracts that dealers originate with non-prime borrowers and then manage those loans through their life. It also packages loans into asset-backed securities as part of its business model. From a consumer perspective, a buyer may not know they are dealing with Consumer Portfolio Services until after their loan has been assigned and they begin receiving payment instructions.

Because Consumer Portfolio Services focuses on non-prime borrowers, the loans it acquires and services typically carry higher interest rates than those available to prime borrowers from banks and credit unions. Rates reflect the higher risk profile of the underlying borrowers.

If your auto loan has been assigned to Consumer Portfolio Services, it means the original dealer or finance company sold your loan to them for servicing. Your loan terms remain the same as they were at origination, but Consumer Portfolio Services handles ongoing payments, account management, and customer service.

Consumers who are currently making payments to Consumer Portfolio Services should understand their full loan terms, including the remaining balance, interest rate, and payoff amount. Those who are still shopping for a vehicle and have been offered financing that will be serviced by Consumer Portfolio Services should review all terms carefully and compare available options before committing to a high-rate subprime loan.