Consumer Portfolio Services is a reputable specialty finance company that provides financing solutions to individuals with subprime credit or limited access to traditional consumer installment credit. The firm works closely with franchised and independent auto dealers, providing them with consumer loans for the purchase of cars, trucks, and SUVs.
Consumer Portfolio Services specializes in the purchase and servicing of subprime and deep subprime automobile contracts from franchise and independent auto dealers. Through this activity, CFS helps provide auto financing for customers who may otherwise not qualify for traditional bank or captive financing.
What Makes Consumer Portfolio Services Different?
Consumer Portfolio Services offers a unique solution for meeting the needs of today’s consumer. It offers a wide range of services that are tailored to meet the needs of a broad range of consumers. CFS has an extensive network of dealers throughout the U.S. and Canada, making it easier for customers to find dealers in their local areas who offer financing from Consumer Portfolio Services.
CFS also offers a variety of programs designed to help customers establish and build their credit. Through its program known as “Build My Credit,” customers can learn how to create and maintain a better credit score. Additionally, CFS offers a complimentary credit review and counseling service which is available to all of its customers.
How Does Consumer Portfolio Services Make Money?
Consumer Portfolio Services generates revenues primarily from fees charged to dealers and from payments received through its portfolio of loan receivables. CFS also earns income from other activities such as interest charges on delinquent accounts and late fees. Additionally, CFS earns fees associated with originating, underwriting, and servicing the loan receivables it purchases.
The Benefits Of Dealing With CFS
Given its wide network of dealers and its comprehensive services, dealing with Consumer Portfolio Services allows you to get the most out of your auto loan experience. CFS provides competitive rates and flexible terms, so you can get the best possible deal on your loan, regardless of your credit situation. In addition, CFS takes pride in its customer service; they invest in the latest technology to ensure that the customer’s experience is as smooth as possible.
The company’s long-standing commitment to responsible lending and ethical practices sets it apart from many of its competitors. CFS has invested heavily in consumer education and financial literacy initiatives, and the company is dedicated to providing fair and transparent loan terms.
Risks Associated With Working With CFS
While Consumer Portfolio Services has a reputation for providing excellent customer service and reasonable loan terms, there are risks associated with working with the company. The most significant risk is the potential for delinquency on a loan receivable. CFS requires borrowers to sign a contract agreeing to pay back their loan according to the terms agreed upon, but there is always a possibility that the borrower may default on their loan.
Additionally, there is always the potential for losses due to market volatility, fraud, or product obsolescence. Finally, since Consumer Portfolio Services falls outside of the purview of traditional banks, borrowers may not have the same level of consumer protection enjoyed by those who borrow from banks.
Overall, Consumer Portfolio Services is an innovative and successful player in the specialty finance industry. By providing flexible loan terms, competitive rates, and excellent customer service, CFS has earned the trust of dealers and borrowers alike.