CPS Receives Subpoena From DOJ

The Department of Justice issued a subpoena to Consumer Portfolio Services on January 14, according to an 8-K filed with the Securities and Exchange Commission last week.

The filing describes the DOJ subpoena as “a civil investigative subpoena from the U.S. Department of Justice pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. The subpoena directs us to produce documents relating to our subprime automotive finance and related securitization activities.”

CPS was ordered to pay more than $5.5 million by the Federal Trade Commission in May, to settle charges stemming from what the FTC called “illegal tactics” to service and collect consumers’ loans, including collecting money consumers did not owe, harassing consumers and third parties, and disclosing debts to friends, family and employers.

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