CPSS
- Consumer Portfolio Services, Inc.
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Overview
Company Summary
Consumer Portfolio Services, Inc. (CPSS) is a company that operates in the financial services industry, specifically specializing in the auto finance sector. Its primary focus is providing indirect automobile financing to subprime borrowers.
CPSS essentially acts as a middleman between car dealerships and consumers who have limited credit histories, low credit scores, or other unfavorable credit qualities. The company offers loans to these customers who may struggle to secure financing from traditional lenders due to their credit profiles.
The role of CPSS is to evaluate the creditworthiness of subprime borrowers and then provide financing options to approved individuals. They work closely with car dealerships, offering them a platform to submit credit applications online for fast approval and funding.
Once a loan is approved, CPSS effectively acts as the loan servicer, handling the accounting, billing, and collection efforts associated with the loan. They collect the loan payments from the borrowers and distribute the funds to the dealerships.
To mitigate the higher credit risk associated with subprime borrowers, CPSS employs advanced risk assessment tools and underwriting techniques. This helps them make informed lending decisions and assess the appropriate interest rates for the loans they offer.
In summary, Consumer Portfolio Services, Inc. specializes in providing auto financing to customers with subprime credit profiles. Through their services, they aim to help borrowers with limited credit access auto loans and, in turn, provide indirect financing solutions to car dealerships.