Consumer Portfolio Services (CPS) is a company dealing in providing automobile financing services to individual borrowers who have small incomes, credit problems in the past and paltry credit histories. This is a specialty finance company buying contracts of retail installment sales mainly from those automobile dealers who are factory franchised. The company pools all these contracts and then finances these contacts by issuing asset-backed securities that are rated as “AAA”. The company was founded in 1991 and currently, it carries out its contract buying activities in 47 states from about 7000 dealers. The common stocks of this company are traded in the NASDAQ National Market System with the name of CPSS.
The
Consumer Portfolio Services does not pay cash dividends on its common stocks. This policy has been maintained by the company since the day of its inception. The company believes that it would be more profitable for the concern to use its earnings to finance its various business activities. The Board of directors will decide if it wants to pay cash dividends in the future. For now, the dividend policy of the Consumer Portfolio Services is of holding back its money-earnings for future uses. If there is any policy change, it will be depending on the following factors:
- Capital requirements
- Future earnings
- Financial condition of the company
- Operations
- Contractual restrictions on dividend payments
- General condition of business
The agreement that the company has with one of its shareholders that involves an amount of $40 million of its debt securities prohibits the company from paying dividends or repurchasing of its own common stocks.
The specialty of this company is that it serves people with prior credit problems like repossession, bankruptcy, collection accounts and charge-offs. The various CPS programs include advances for vehicles, providing opportunities to dealers for financing sub-prime buyers, seven credit tiers which are easy to follow. There are also suitable programs for first time buyers.
Contact Details of Consumer Portfolio Services:
INVESTOR RELATIONS
1(888)505-9200
ORIGINATIONS
1(800)328-3175
SERVICING
1(800)365-7285