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.
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.
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