Consumer Portfolio Services (CPS) is a company dealing in automobile financing services for customers with a poor credit history. It is a specialty finance company that buys contracts of retail installment sales mainly from those automobile dealers who are factory-franchised.
The company pools all these contracts and then finances them by issuing “AAA”-rated, asset-backed securities. The company was founded in 1991 and currently operates in 47 states, working with 7000 dealers. The common stocks of this company are traded in the NASDAQ National Market System with the name of CPSS.
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.
Any policy change will depend on the following factors:
Financial condition of the company
Contractual restrictions on dividend payments
General condition of business
CPS has created its own niche by serving 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, and seven credit tiers which are easy to follow. There are also suitable programs for first time buyers.
Contact Details of Consumer Portfolio Services:
Last Updated on : 8th July 2013