What is Consumer Portfolio Services? Auto Loans Explained
Consumer Portfolio Services provides auto financing to individuals with poor credit, but at significantly higher interest rates than traditional lenders. If you're facing a lawsuit from Consumer Portfolio Services, you can negotiate a settlement for less than the full balance owed.
Settle Your DebtShopping for a new car brings excitement and anxiety. Price, condition, and features all matter. You also need to consider financing options.
Consumer Portfolio Services offers auto financing to people with poor credit. The company targets individuals with low income or limited credit history. They primarily work with independent franchise dealerships selling used vehicles.
Consumer Portfolio Services Suing You Over an Auto Loan?
You can settle your Consumer Portfolio Services debt for less than you owe. Respond to the lawsuit and negotiate a settlement before a court judgment is entered against you.
Start Settlement NowConsumer Portfolio Services Loan Types
Consumer Portfolio Services exclusively markets loans for used and new vehicles. You must purchase a car from a partnering dealership. Consumer Portfolio Services does not offer independent loans for shopping around.
Unfortunately, Consumer Portfolio Services does not list financing terms online. Interest rates remain undisclosed on their website. Since they service consumers with poor credit, rates likely exceed traditional bank loans.
Better Business Bureau Rating and Customer Complaints
Consumer Portfolio Services maintains an A+ BBB rating. However, customers rate the company just 1.13 out of 5 stars. Numerous complaints have been filed.
Several complaints relate to inaccurate credit bureau reporting. One customer totaled their car, and insurance paid the remaining balance. Consumer Portfolio Services still reported the vehicle as a repossession.
Another complaint involves difficulty obtaining a vehicle title. The customer paid off their car but waited nearly five months. Consumer Portfolio Services finally released the title after repeated requests.
One customer experienced severe financial distress after totaling their vehicle. Their insurance didn’t cover the remaining loan balance. They owed $8,000 and had no working vehicle. Consumer Portfolio Services offered a settlement, but the amount exceeded affordability. Bankruptcy became their only option.
Why Consumer Portfolio Services Financing May Not Help You
Consumer Portfolio Services markets loans to individuals with poor credit. Their services can help clients needing a vehicle immediately. However, you will pay significantly more in interest and financing charges.
Consider the condition of your vehicle carefully. Consumer Portfolio Services primarily serves the used car market. You cannot guarantee your purchase won’t need extensive repairs.
On top of high monthly payments, you may spend thousands on repairs. In the worst case, you’ll end up with an unrepairable lemon. You’ll still owe the debt.
Longer repayment terms increase your risk of problems. You can’t predict the future. Circumstances may impact the vehicle’s performance or your financial situation.
Before taking out a Consumer Portfolio Services loan, examine repayment terms carefully. Review interest rates thoroughly. Repay your loan within two to three years if possible. Avoid extended options with lower monthly minimums.
Example: Stacy’s Car Loan Problem
Stacy needs a car to get to work. She visits her local used car dealership. She selects a 2016 Toyota Corolla.
Stacy needs financing to purchase the vehicle. The dealership partners with Consumer Portfolio Services. Stacy receives approval for a $15,000 loan. Her interest rate is 19.99% over 72 months.
After two years, she totals the vehicle. Her insurance company won’t repay the entire loan balance. She has nearly $10,000 in remaining debt. She has no car.
Understanding Consumer Portfolio Services as a Lender
Consumer Portfolio Services helps people obtain financing they might not otherwise qualify for. Commercial banks and credit unions often reject these applicants.
If Consumer Portfolio Services offers you a loan, read your agreement closely. Accept the loan only if you can repay it comfortably. Ensure the car is in good condition.
Strive to pay off the loan quickly. Early repayment helps you avoid additional finance fees.
Facing a Consumer Portfolio Services Lawsuit
Consumer Portfolio Services may sue you for outstanding vehicle debt. You can settle the debt for less at any stage. Our partner Solo helps you negotiate settlements and respond to lawsuits.
Debt settlement can help you save thousands. You can avoid going to court. Settlement offers typically range from 30% to 70% of the balance.
You have rights when facing a debt lawsuit. Consumer Portfolio Services must prove you owe the debt. They must validate the amount they claim you owe.
How to Settle Your Consumer Portfolio Services Debt
Settling debt with Consumer Portfolio Services requires strategic negotiation. Start by determining how much you can realistically pay. Gather documentation of your financial hardship.
Make an initial settlement offer of 30% to 40% of the balance. Consumer Portfolio Services will likely counteroffer. Negotiate until you reach an acceptable agreement.
Always get settlement agreements in writing before making payment. The agreement should state the debt will be satisfied upon payment. Never provide bank account information over the phone.
Our partner Solo can help you through the entire settlement process. They send and receive offers on your behalf. They keep your financial information private and secure.
Your Rights When Dealing with Consumer Portfolio Services
Consumer Portfolio Services must follow the Fair Debt Collection Practices Act. They cannot harass you or call at unreasonable hours. They cannot threaten you with actions they don’t intend to take.
You have the right to request debt validation. Consumer Portfolio Services must provide proof of the debt. They must show they own the debt and the amount is accurate.
If Consumer Portfolio Services violates your rights, you can sue them. You may be entitled to damages and attorney fees. Document all communication with the company.
Alternatives to Consumer Portfolio Services Auto Loans
Before accepting a Consumer Portfolio Services loan, explore other options. Credit unions often offer more favorable terms than subprime lenders. Some credit unions specialize in helping members with challenged credit.
Consider delaying your car purchase if possible. Use the time to improve your credit score. Even a few months can make a difference in available rates.
Buy a less expensive vehicle with cash if you can. Avoid the burden of high-interest financing altogether. You can upgrade later when your financial situation improves.
Public transportation or carpooling might work temporarily. These alternatives cost significantly less than subprime auto financing. They give you time to build savings and improve credit.