Sarah Edwards | March 23, 2023
Summary: Consumer Portfolio Services provides new and used car financing to individuals with poor credit and low incomes. If you’re being sued by Consumer Portfolio Services, SoloSettle can help you settle the debt and avoid going to court.
Shopping for a new car is exciting but can also provoke anxiety. There are a lot of factors that go into purchasing a vehicle, like its price, condition, and features. If you’re not buying the car outright, you’ll also need to consider financing options.
People shopping for vehicles may come across Consumer Portfolio Services. Consumer Portfolio Services offers financing to people with poor credit, low income, or lack of credit history. The company primarily collaborates with independent franchise dealerships that sell used vehicles.
Consumer Portfolio Services exclusively markets loans for used and new vehicles. Individuals interested in obtaining a loan from Consumer Portfolio Services must purchase a car from a dealership that collaborates with the firm. Consumer Portfolio Services does not offer independent loans that a consumer can use to shop around various dealerships.
Unfortunately, Consumer Portfolio Services does not list its financing terms or interest rates on its website. However, since Consumer Portfolio Services primarily services consumers with poor credit, we can assume its interest rates are higher than a traditional auto loan from a bank.
Watch our video to learn how to settle your Consumer Portfolio Services auto loan:
Consumer Portfolio Services maintains an A+ rating with the Better Business Bureau (BBB). However, customers rate Consumer Portfolio Services 1.13 out of 5 stars, and there are numerous complaints.
Several complaints relate to the company’s policies for reporting information to the credit bureaus. For instance, one person totaled the car they bought, and the insurance agency paid the remaining balance due to Consumer Portfolio Services. However, Consumer Portfolio Services erroneously reported the vehicle as a repo on the customer’s credit report.
Another complaint relates to obtaining a vehicle’s title. The customer paid the car off, then had difficulties getting the title from Consumer Portfolio Services. After nearly five months, the customer finally received the title to their vehicle.
One customer experienced severe financial distress after totaling the vehicle they bought with a Consumer Portfolio Services loan. Their car insurance didn’t cover the remaining balance of the loan. They owed $8K and had no working vehicle. Consumer Portfolio Services offered the client a settlement, but it was too much to repay. Their only remaining option was to declare bankruptcy.
Use SoloSuit’s Debt Validation template to validate your obligation with Consumer Portfolio Services.
Consumer Portfolio Services markets its loans to individuals with poor credit or limited income. While there’s no doubt that their services can help clients in immediate need of a vehicle who can’t obtain a low-interest loan through traditional financing, customers will pay much more in interest and financing charges.
You should also consider the condition of the vehicle you buy. Since Consumer Portfolio Services primarily serves the used car market, you can’t guarantee that the vehicle you purchase won’t need extensive future repairs.
On top of a high monthly payment, you may also spend thousands of dollars making the car safe for driving. In the worst case, you’ll end up with an unrepairable lemon and a debt you’ll have to repay.
The longer your repayment terms are, the more likely you will encounter issues. You can’t predict the future, and circumstances may arise that impact the vehicle’s performance or affect you financially.
Before taking out a loan with Consumer Portfolio Services, carefully examine the repayment terms and interest rates. If you can, it’s best to repay your loan within two to three years rather than taking an extended option that offers lower monthly minimum payments.
Let’s consider an example.
Example: Stacy needs a car to get to work. She visits her local used car dealership and selects a 2016 Toyota Corolla. Stacy needs financing to purchase the vehicle, so the dealership allows her to apply for a loan with their partner, Consumer Portfolio Services. Stacy receives approval for a $15K loan with 19.99% financing over 72 months. After two years, she totals the vehicle, and her insurance company won’t repay the entire loan balance. She has nearly $10K in remaining debt and no car. She uses SoloSettle to send an offer to settle the debt with a lump-sum payment.
Consumer Portfolio Services helps people obtain the financing they might not qualify for through commercial banks or credit unions. If Consumer Portfolio Services offers you a loan, read the terms of your agreement closely.
Accept the loan only if you don’t foresee any problem repaying it and the car is in good condition. You should strive to pay off the loan quickly to avoid additional finance fees.
Is Consumer Portfolio Services suing you for an outstanding vehicle debt?
If you’ve been sued by Consumer Portfolio Services, you can settle the debt for less at any stage of the lawsuit process.
SoloSettle makes the debt settlement process easy. Our software sends and receives settlement offers until an agreement is reached, then helps you manage your settlement agreement documentation. Most importantly, SoloSettle transfers your settlement payment for you, keeping your financial information private and secure.
Debt settlement can help you save thousands and avoid going to court. Check out our guide on how to settle a debt in 3 steps to learn more.
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.
Is your credit card company suing you? Learn how you can beat each one.
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendants Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouses Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
How Many Times Can a Judgment be Renewed in Oklahoma?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
Arkansas Statute of Limitations on Debt
Youre Drowning in Debt — Heres How to Swim
Help! Im Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Heres What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
Do Debt Collectors Ever Give Up?
Can They Garnish Your Wages for Credit Card Debt?
How Often Do Credit Card Companies Sue for Non-Payment?
How Long Does a Judgement Last?
How Long Before a Creditor Can Garnish Wages?
How to Beat a Bill Collector in Court
Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather