Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Oct. 21, 2014
Document And Entity Information
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	0000889609
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		25,371,198
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 13,136	$ 22,112
Restricted cash and equivalents	174,634	132,284
Finance receivables	1,462,430	1,155,063
Less: Allowance for finance credit losses	(54,621)	(39,626)
Finance receivables, net	1,407,809	1,115,437
Finance receivables measured at fair value	3,202	14,476
Residual interest in securitizations	135	854
Furniture and equipment, net	1,066	766
Deferred financing costs	11,954	11,071
Deferred tax assets, net	46,587	59,215
Accrued interest receivable	21,600	18,670
Other assets	24,793	21,481
Total	1,704,916	1,396,366
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	22,873	24,839
Warehouse lines of credit	59,442	9,452
Residual interest financing	12,767	19,096
Debt secured by receivables measured at fair value	3,170	13,117
Securitization trust debt	1,469,670	1,177,559
Senior secured debt, related party	0	38,559
Subordinated renewable notes	15,493	19,142
Total	1,583,415	1,301,764
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Common stock, no par value; authorized 75,000,000 shares; 25,339,698 and 24,015,585 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	78,815	73,422
Retained earnings	43,781	22,275
Accumulated other comprehensive loss	(1,095)	(1,095)
Total	121,501	94,602
Total	1,704,916	1,396,366
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued Series A preferred stock, $1 par value; authorized 5,000,000 shares; none issued Series B preferred stock, $1 par value; authorized 1,870 shares; none issued	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued Series A preferred stock, $1 par value; authorized 5,000,000 shares; none issued Series B preferred stock, $1 par value; authorized 1,870 shares; none issued	$ 0	$ 0

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	4,998,130	4,998,130
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Authorized	75,000,000	75,000,000
Common Stock, Issued	25,339,698	24,015,585
Common Stock, Outstanding	25,339,698	24,015,585
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	5,000,000	5,000,000
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	1,870	1,870
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:
Interest income	$ 73,865	$ 60,462	$ 207,082	$ 167,426
Servicing fees	278	700	1,158	2,484
Other income	2,907	2,904	8,550	8,284
Gain on cancellation of debt	0	0	0	10,947
Total	77,050	64,066	216,790	189,141
Expenses:
Employee costs	12,733	11,199	35,397	31,675
General and administrative	5,804	4,074	14,482	12,346
Interest	12,239	13,853	37,562	44,800
Provision for credit losses	27,287	20,220	76,795	52,739
Provision for contingent liabilities	0	0	0	9,650
Marketing	4,167	3,378	11,826	10,032
Occupancy	898	695	2,493	1,921
Depreciation and amortization	118	88	339	345
Total	63,246	53,507	178,894	163,508
Income before income tax expense	13,804	10,559	37,896	25,633
Income tax expense	6,028	4,686	16,390	11,150
Net income	$ 7,776	$ 5,873	$ 21,506	$ 14,483
Income per share:
Basic	$ 0.31	$ 0.27	$ 0.86	$ 0.69
Diluted	$ 0.24	$ 0.19	$ 0.67	$ 0.46
Number of shares used in computing income per share:
Basic	25,290,000	21,795,000	24,895,000	20,959,000
Diluted	32,040,000	31,217,000	32,021,000	31,550,000

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Unaudited Condensed Consolidated Statements Of Comprehensive Income
Net income	$ 7,776	$ 5,873	$ 21,506	$ 14,483
Other comprehensive income/(loss); change in funded status of pension plan	0	0	0	0
Comprehensive income	$ 7,776	$ 5,873	$ 21,506	$ 14,483

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net income	$ 21,506	$ 14,483
Accretion of deferred acquisition fees	(12,793)	(15,543)
Accretion of purchase discount on receivables measured at fair value	(353)	(1,247)
Amortization of discount on securitization trust debt	106	53
Amortization of discount on senior secured debt, related party	623	1,681
Accretion of premium on debt secured by receivables measured at fair value	631	2,079
Mark to fair value on debt secured by receivables at fair value	339	(933)
Mark to fair value of receivables measured at fair value	(43)	595
Depreciation and amortization	339	345
Amortization of deferred financing costs	5,054	2,874
Provision for credit losses	76,795	52,739
Provision for contingent liabilities	0	9,650
Stock-based compensation expense	2,578	2,939
Interest income on residual assets	(320)	0
Gain on cancellation of debt	0	(10,947)
Changes in assets and liabilities:
Accrued interest receivable	(2,930)	(4,735)
Deferred tax assets, net	12,628	9,474
Other assets	(1,220)	680
Accounts payable and accrued expenses	(1,966)	6,965
Net cash provided by operating activities	100,974	71,152
Cash flows from investing activities:
Purchases of finance receivables held for investment	(680,569)	(592,327)
Payments received on finance receivables held for investment	324,195	253,062
Payments on receivables portfolio at fair value	11,670	39,103
Proceeds received on residual interest in securitizations	1,039	3,398
Change in repossessions in inventory	(2,092)	(3,020)
Decreases (increases) in restricted cash and cash equivalents, net	(42,350)	(25,005)
Purchase of furniture and equipment	(639)	(226)
Net cash used in investing activities	(388,746)	(325,015)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	655,500	595,000
Proceeds from issuance of subordinated renewable notes	406	1,380
Payments on subordinated renewable notes	(4,055)	(4,021)
Net proceeds from (repayments of) warehouse lines of credit	49,990	5,228
Proceeds from (repayments of) residual interest financing debt	(6,329)	6,227
Repayment of securitization trust debt	(363,495)	(282,044)
Repayment of debt secured by receivables measured at fair value	(10,917)	(41,365)
Repayment of senior secured debt, related party	(39,182)	(12,852)
Payment of financing costs	(5,937)	(4,898)
Repurchase of common stock	0	0
Exercise of options and warrants	2,815	2,370
Net cash provided by financing activities	278,796	265,025
Increase (decrease) in cash and cash equivalents	(8,976)	11,162
Cash and cash equivalents at beginning of period	22,112	12,966
Cash and cash equivalents at end of period	13,136	24,128
Cash paid during the period for:
Interest	32,864	41,936
Income taxes	6,259	2,058
Non-cash financing activities:
Derivative warrants reclassified from accounts payable to common stock	$ 0	$ 583

1. Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Description of Business

We were formed in California on March 8, 1991. We specialize in purchasing and servicing retail automobile installment sale contracts (“automobile contracts” or “finance receivables”) originated by licensed motor vehicle dealers located throughout the United States (“dealers”) in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealer customers for borrowers with limited credit histories or past credit problems (“sub-prime customers”). We serve as an alternative source of financing for dealers, allowing sales to customers who otherwise might not be able to obtain financing. In addition to purchasing installment purchase contracts directly from dealers, we have also (i) acquired installment purchase contracts in four merger and acquisition transactions, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) lent money directly to consumers for an immaterial amount of loans secured by vehicles. In this report, we refer to all of such contracts and loans as "automobile contracts."

Basis of Presentation

Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the nine-month period ended September 30, 2014 are not necessarily indicative of the operating results to be expected for the full year.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from these Unaudited Condensed Consolidated Financial Statements. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Specifically, a number of estimates were made in connection with determining an appropriate allowance for finance credit losses, determining appropriate reserves for contingent liabilities, valuing finance receivables measured at fair value and the related debt, valuing residual interest in securitizations, accreting net acquisition fees, amortizing deferred costs, valuing stock options and warrants issued, and recording deferred tax assets and reserves for uncertain tax positions. These are material estimates that could be susceptible to changes in the near term and, accordingly, actual results could differ from those estimates.

Other Income

The following table presents the primary components of Other Income for the three-month and nine-month periods ending September 30, 2014 and 2013:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(In thousands)					(In thousands)
Direct mail revenues	$	1,921		$	1,691	$	5,944		$	5,418
Convenience fee revenue		840			720		2,450			2,235
Recoveries on previously charged-off contracts		39			49		121			153
Sales tax refunds		129			–		360			84
Other		(22	)		444		(325	)		394
Other income for the period	$	2,907		$	2,904	$	8,550		$	8,284

Stock-based Compensation

We recognize compensation costs in the financial statements for all share-based payments based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”.

For the nine months ended September 30, 2014 and 2013, we recorded stock-based compensation costs in the amount of $2.6 million and $2.9 million, respectively. As of September 30, 2014, unrecognized stock-based compensation costs to be recognized over future periods equaled $15.2 million. This amount will be recognized as expense over a weighted-average period of 3.2 years.

The following represents stock option activity for the nine months ended September 30, 2014:

						Weighted
	Number of			Weighted		Average
	Shares			Average		Remaining
	(in thousands)			Exercise Price		Contractual Term
Options outstanding at the beginning of period		10,128		$	3.30	N/A
Granted		2,030			6.59	N/A
Exercised		(1,168	)		2.06	N/A
Forfeited		(103	)		4.58	N/A
Options outstanding at the end of period		10,887		$	4.04	6.24 years

Options exercisable at the end of period		5,719		$	2.53	5.09 years

At September 30, 2014, the aggregate intrinsic value of options outstanding and exercisable was $29.1 million and $23.0 million, respectively. There were 1,168,000 options exercised for the nine months ended September 30, 2014 compared to 1,116,000 for the comparable period in 2013. There were 2.1 million shares available for future stock option grants under existing plans as of September 30, 2014. The per share weighted-average fair value of stock options granted during the nine months ended September 30, 2014 was $2.73.

Purchases of Company Stock

During the nine-month period ended September 30, 2014 and 2013, we re-purchased 73,788 and 323,674 shares, respectively, of our common stock, at average prices of $7.91 and $7.68, respectively. All purchases were related to net exercises of outstanding options and warrants. In transactions during the nine-month period ended September 30, 2014, the holder of options and warrants to purchase 395,000 shares of our common stock paid the aggregate $583,000 exercise price by surrender to us of 73,788 of such 395,000 shares. There were no open market purchases of our common stock.

New Accounting Pronouncements

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

Reclassifications

Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or total shareholders’ equity.

Financial Covenants

Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of September 30, 2014, we were in compliance with all such covenants. In addition, certain securitization and non-securitization related debt agreements contain cross-default provisions that would allow certain creditors to declare a default if a default occurred under a different facility.

Finance Receivables and Related Debt Measured at Fair Value

In September 2011 we purchased approximately $217.8 million of finance receivables from Fireside Bank. These receivables and the related acquisition debt are recorded on our balance sheet at fair value. There are no level 1 or level 2 inputs (as described by ASC 820) available to us for measurement of such receivables, or for the related debt. Our level 3, unobservable inputs reflect our own assumptions about the factors that market participants use in pricing similar receivables and debt, and are based on the best information available in the circumstances. The valuation method used to estimate fair value may produce a fair value measurement that may not be indicative of ultimate realizable value. Furthermore, while we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial instruments could result in different estimates of fair value. Those estimated values may differ significantly from the values that would have been used had a readily available market for such receivables or debt existed, or had such receivables or debt been liquidated, and those differences could be material to the financial statements.

Gain on Cancellation of Debt

In April 2013, we repurchased the outstanding Class D notes issued by our first 2008 securitization trust, for a cash payment of $6.1 million and a new 5% note for $5.3 million due in June 2014. The Class D notes were held by the same related party that held our senior secured debt. On the date we repurchased the Class D notes, the Class D note holder owned 10.5% of our outstanding common stock. We subsequently exercised our “clean-up call” option and repurchased the remaining collateral from the related securitization trust. The aggregate value of our consideration given for the Class D notes was $10.9 million less than our carrying value of the Class D notes at the time of the repurchase. As a result of the repurchase of the Class D notes and the termination of the securitization trust, we realized a gain of $10.9 million for the nine-month period ended September 30, 2013.

Provision for Contingent Liabilities

We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Our legal counsel has advised us on such matters where, based on information available at the time of this report, there is an indication that it is both probable that a liability has been incurred and the amount of the loss can be reasonably determined.

In June 2013, we recognized $9.7 million in contingent liability expenses to either record or increase the amounts we believed represented our best estimate of probable incurred losses related to various matters. The amount was allocated in part to a long running case (“Pardee”) in which we were sued for indemnity, and also to more recent matters. In September 2014 we reached a settlement, of the Pardee case, pursuant to which we paid $5.99 million and all claims against us were fully and finally discharged.

The more recent matters included two California class action suits where we are the defendant, and a governmental inquiry, in which the United States Federal Trade Commission (“FTC”) had informally proposed that we refrain from certain allegedly unfair trade practices, and make restitutionary payments into a consumer relief fund. In May 2014, the FTC announced its agreement to settle the matter by filing a lawsuit against us, and requesting, with our consent, that the court enter an agreed judgment against us. The lawsuit arose out of the FTC’s inquiry into our business practices. Under the agreed settlement, we made approximately $1.9 million of restitutionary payments and $1.6 million of account adjustments to our customers in September 2014, and paid a $2 million penalty to the federal government in June 2014, and implemented procedural changes, all pursuant to a consent decree which was entered by the court in June 2014.

We have recorded a liability as of September 30, 2014, which represents our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

2. Finance Receivables

9 Months Ended

Sep. 30, 2014

Finance Receivables

Finance Receivables

Our portfolio of finance receivables consists of small-balance homogeneous contracts comprising a single segment and class that is collectively evaluated for impairment on a portfolio basis according to delinquency status. Our contract purchase guidelines are designed to produce a homogenous portfolio. For key terms such as interest rate, length of contract, monthly payment and amount financed, there is relatively little variation from the average for the portfolio. We report delinquency on a contractual basis. Once a contract becomes greater than 90 days delinquent, we do not recognize additional interest income until the obligor under the contract makes sufficient payments to be less than 90 days delinquent. Any payments received on a contract that is greater than 90 days delinquent are first applied to accrued interest and then to principal reduction.

The following table presents the components of Finance Receivables, net of unearned interest:

	September 30,			December 31,
	2014			2013
Finance Receivables	(In thousands)

Automobile finance receivables, net of unearned interest	$	1,481,410		$	1,182,950
Less: Unearned acquisition fees and originations costs		(18,980	)		(27,887	)
Finance Receivables	$	1,462,430		$	1,155,063

We consider an automobile contract delinquent when an obligor fails to make at least 90% of a contractually due payment by the following due date, which date may have been extended within limits specified in the servicing agreements. The period of delinquency is based on the number of days payments are contractually past due, as extended where applicable. Automobile contracts less than 31 days delinquent are not included. In certain circumstances we will grant obligors one-month payment extensions to assist them with temporary cash flow problems. The only modification of terms is to advance the obligor’s next due date by one month and extend the maturity date of the receivable by one month. In certain limited cases, a two-month extension may be granted. There are no other concessions such as a reduction in interest rate, forgiveness of principal or of accrued interest. Accordingly, we consider such extensions to be insignificant delays in payments rather than troubled debt restructurings. The following table summarizes the delinquency status of finance receivables as of September 30, 2014 and December 31, 2013:

	September 30,		December 31,
	2014		2013
	(In thousands)
Deliquency Status
Current	$	1,412,427	$	1,125,926
31 - 60 days		38,800		21,421
61 - 90 days		17,398		24,663
91 + days		12,785		10,940
	$	1,481,410	$	1,182,950

Finance receivables totaling $12.8 million and $10.9 million at September 30, 2014 and December 31, 2013, respectively, including all receivables greater than 90 days delinquent, have been placed on non-accrual status as a result of their delinquency status.

We use a loss allowance methodology commonly referred to as "static pooling," which stratifies our finance receivable portfolio into separately identified pools based on the period of origination. Using analytical and formula driven techniques, we estimate an allowance for finance credit losses, which we believe is adequate for probable incurred credit losses that can be reasonably estimated in our portfolio of automobile contracts. The estimate for probable incurred credit losses is reduced by our estimate for future recoveries on previously incurred losses. Provision for losses is charged to our consolidated statement of operations. Net losses incurred on finance receivables are charged to the allowance. We establish the allowance for new receivables over the 12-month period following their acquisition.

The following table presents a summary of the activity for the allowance for finance credit losses for the three-month and nine-month periods ended September 30, 2014 and 2013:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)						(In thousands)
Balance at beginning of period	$	53,326		$	32,101		$	39,626		$	19,594
Provision for credit losses on finance receivables		27,287			20,220			76,795			52,739
Charge-offs		(29,988	)		(20,952	)		(80,514	)		(47,229	)
Recoveries		3,996			3,095			18,714			9,360
Balance at end of period	$	54,621		$	34,464		$	54,621		$	34,464

Excluded from finance receivables are contracts that were previously classified as finance receivables but were reclassified as other assets because we have repossessed the vehicle securing the Contract. The following table presents a summary of such repossessed inventory together with the allowance for losses in repossessed inventory that is not included in the allowance for finance credit losses:

	September 30,			December 31,
	2014			2013
	(In thousands)
Gross balance of repossessions in inventory	$	31,276		$	24,743
Allowance for losses on repossessed inventory		(19,220	)		(14,779	)
Net repossessed inventory included in other assets	$	12,056		$	9,964

- Definition

Disclosure of accounting policy for those finance, loan and lease receivables classified as held for investment. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the allowance for loan and lease losses is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of commitment and other fees and loan origination costs (including, if applicable, how the entity accounts for fees and costs associated with credit cards that are either purchased or originated) (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status (for impaired loans, the policy for recognizing interest income on such loans, including how cash receipts are recorded) and (7) the treatment of foreclosures or repossessions.

+ References+ Details

3. Finance Receivables Measured at Fair Value

9 Months Ended

Sep. 30, 2014

Finance Receivables Measured At Fair Value

Finance Receivables Measured at Fair Value

In September 2011 we purchased approximately $217.8 million of finance receivables from Fireside Bank. These receivables are recorded on our balance sheet at fair value.

The following table presents the components of Finance Receivables measured at fair value:

	September 30,		December 31,
	2014		2013
Finance Receivables Measured at Fair Value	(In thousands)

Finance receivables and accrued interest, net of unearned interest	$	3,202	$	14,786
Less: Fair value adjustment		–		(310	)
Finance receivables measured at fair value	$	3,202	$	14,476

The following table summarizes the delinquency status of finance receivables measured at fair value as of September 30, 2014 and December 31, 2013:

	September 30,		December 31,
	2014		2013
	(In thousands)
Delinquency Status
Current	$	2,783	$	13,421
31 - 60 days		295		878
61 - 90 days		84		253
91 + days		40		234
	$	3,202	$	14,786

4. Securitization Trust Debt

9 Months Ended

Sep. 30, 2014

Securitization Trust Debt

Securitization Trust Debt

We have completed many securitization transactions that are structured as secured borrowings for financial accounting purposes. The debt issued in these transactions is shown on our Unaudited Condensed Consolidated Balance Sheets as “Securitization trust debt,” and the components of such debt are summarized in the following table:

										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate at
	Payment	September 30,		Initial		September 30,		December 31,		September 30,
Series	Date (1)	2014 (2)		Principal		2014		2013		2014
	(Dollars in thousands)
Page Five Funding	January 2018	$	5,781	$	46,058	$	3,862	$	9,358		9.28%
CPS 2011-A	April 2018		15,687		104,546		11,665		24,526		2.86%
CPS 2011-B	September 2018		27,632		111,046		27,235		44,433		4.53%
CPS 2011-C	March 2019		35,992		119,400		35,773		56,271		4.92%
CPS 2012-A	June 2019		42,577		155,000		41,703		65,051		3.44%
CPS 2012-B	September 2019		58,409		141,500		57,490		86,254		3.14%
CPS 2012-C	December 2019		64,289		147,000		63,376		93,006		2.48%
CPS 2012-D	March 2020		77,951		160,000		77,234		108,815		2.14%
CPS 2013-A	June 2020		110,393		185,000		109,937		142,842		2.00%
CPS 2013-B	September 2020		133,324		205,000		131,358		172,499		2.45%
CPS 2013-C	December 2020		150,069		205,000		147,671		191,504		2.64%
CPS 2013-D	March 2021		148,167		183,000		144,868		183,000		2.36%
CPS 2014-A	June 2021		159,479		180,000		155,381		–		1.98%
CPS 2014-B	September 2021		192,600		202,500		189,117		–		1.82%
CPS 2014-C (3)	December 2021		182,936		273,000		273,000		–		2.05%
		$	1,405,286	$	2,418,050	$	1,469,670	$	1,177,559

____________

(1)

The Final Scheduled Payment Date represents final legal maturity of the securitization trust debt. Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $152.6 million in 2014, $559.0 million in 2015, $386.0 million in 2016, $225.3 million in 2017, $108.1 million in 2018 and $38.7 million in 2019.

(2)

Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

(3)

An additional $87.8 million of receivables were pledged to CPS 2014-C in October 2014.

All of the securitization trust debt was sold in private placement transactions to qualified institutional buyers. The debt was issued through our wholly-owned bankruptcy remote subsidiaries and is secured by the assets of such subsidiaries, but not by our other assets.

The terms of the securitization agreements related to the issuance of the securitization trust debt and the warehouse credit facilities require that we meet certain delinquency and credit loss criteria with respect to the pool of receivables, and certain of the agreements require that we maintain minimum levels of liquidity and not exceed maximum leverage levels. In addition, certain securitization and non-securitization related debt contain cross-default provisions, which would allow certain creditors to declare a default if a default were declared under a different facility. As of September 30, 2014, we were in compliance with all such covenants.

We are responsible for the administration and collection of the automobile contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional collateral for the borrowings, to be applied to make payments on the securitization trust debt or as pre-funding proceeds from a term securitization prior to the purchase of additional collateral. As of September 30, 2014, restricted cash under the various agreements totaled approximately $174.6 million, of which $87.8 million represented pre-funding proceeds. Interest expense on the securitization trust debt consists of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, amortization of deferred financing costs and discounts on notes sold. Deferred financing costs and discounts on notes sold related to the securitization trust debt are amortized using a level yield method. Accordingly, the effective cost of the securitization trust debt is greater than the contractual rate of interest disclosed above.

Our wholly-owned bankruptcy remote subsidiaries were formed to facilitate the above asset-backed financing transactions. Similar bankruptcy remote subsidiaries issue the debt outstanding under our credit facilities. Bankruptcy remote refers to a legal structure in which it is expected that the applicable entity would not be included in any bankruptcy filing by its parent or affiliates. All of the assets of these subsidiaries have been pledged as collateral for the related debt. All such transactions, treated as secured financings for accounting and tax purposes, are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of these subsidiaries are available to pay other creditors.

5. Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt

The terms and amounts of our other debt outstanding at September 30, 2014 and December 31, 2013 are summarized below:

			Amount Outstanding at
			September 30,		December 31,
			2014		2013
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.73% over one month Libor (Minimum 6.73%)	March 2017	$	27,545	$	9,452

	5.50% over one month Libor (Minimum 6.25%)	August 2017		31,897		–

Residual interest financing	11.75% over one month Libor	April 2018		12,767		19,096

Debt secured by receivables measured at fair value	n/a	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013, with residual payments extending through 2016		3,170		13,117

Senior secured debt, related party	13.00%	n/a		–		37,128

	5.00%	n/a		–		1,431

Subordinated renewable notes	Weighted average rate of 10.8% and 12.5% at September 30, 2014 and December 31, 2013, respectively	Weighted average maturity of May 2016 and July 2015 at September 30, 2014 and December 31, 2013, respectively		15,493		19,142
			$	90,872	$	99,366

In January and March 2014 we prepaid, without penalty, $10 million and $28.4 million, respectively, of senior secured debt, related party. The debt was scheduled to mature in June 2014.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

6. Interest Income and Interest Expense

9 Months Ended

Sep. 30, 2014

Interest Income And Interest Expense

Interest Income and Interest Expense

The following table presents the components of interest income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Interest on finance receivables	$	73,781	$	60,462	$	206,761	$	167,416
Residual interest income		84		–		320		–
Other interest income		–		–		1		10
Interest income	$	73,865	$	60,462	$	207,082	$	167,426

The following table presents the components of interest expense:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)

Securitization trust debt	$	9,582	$	8,357	$	28,279	$	25,725
Warehouse lines of credit		1,531		1,447		3,646		4,026
Senior secured debt, related party		–		1,599		1,651		6,474
Debt secured by receivables at fair value		150		623		683		3,435
Residual interest financing		462		1,079		1,545		2,666
Subordinated renewable notes		514		748		1,758		2,474
Interest expense	$	12,239	$	13,853	$	37,562	$	44,800

7. Earnings Per Share

9 Months Ended

Sep. 30, 2014

Income per share:

Earnings Per Share

Earnings per share for the three-month and nine-month periods ended September 30, 2014 and 2013 were calculated using the weighted average number of shares outstanding for the related period. The following table reconciles the number of shares used in the computations of basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2014 and 2013:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Weighted average number of common shares outstanding during the period used to compute basic earnings per share		25,290		21,795		24,895		20,959

Incremental common shares attributable to exercise of outstanding options and warrants		6,750		9,422		7,126		10,591

Weighted average number of common shares used to compute diluted earnings per share		32,040		31,217		32,021		31,550

If the anti-dilutive effects of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-month and nine-month periods ended September 30, 2014 would have included an additional 4.0 and 3.1 million shares, respectively attributable to the exercise of outstanding options and warrants. For the three-month and nine-month periods ended September 30, 2013, the anti-dilutive shares were 3.1 million and 1.9 million, respectively.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

8. Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

We file numerous consolidated and separate income tax returns with the United States and with many states. With few exceptions, we are no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2010.

As of September 30, 2014 and December 31, 2013, we had no unrecognized tax benefits for uncertain tax positions. We do not anticipate that total unrecognized tax benefits will significantly change due to any settlements of audits or expirations of statutes of limitations over the next 12 months.

The Company and its subsidiaries file a consolidated federal income tax return and combined or stand-alone state franchise tax returns for certain states. We utilize the asset and liability method of accounting for income taxes, under which deferred income taxes are recognized for the future tax consequences attributable to the differences between the financial statement values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date.

Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not. A valuation allowance is recognized for a deferred tax asset if, based on the weight of the available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. In making such judgments, significant weight is given to evidence that can be objectively verified. Although realization is not assured, we believe that the realization of the recognized net deferred tax asset of $46.6 million as of September 30, 2014 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $46.6 million consists of approximately $35.2 million of net U.S. federal deferred tax assets and $11.4 million of net state deferred tax assets. We estimate that we would need to generate approximately $108 million of taxable income during the applicable carryforward periods to realize fully our federal and state net deferred tax assets.

Income tax expense was $6.0 million and $16.4 million for the three months and nine months ended September 30, 2014 and represents an effective income tax rate of 44% and 43%, respectively, compared to income tax expense of $4.7 million and $11.2 million for the three months and nine months ended September 30, 2013, representing effective income tax rates of 44% and 43%, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

9. Legal Proceedings

9 Months Ended

Sep. 30, 2014

Legal Proceedings

Legal Proceedings

Stanwich Litigation. We were for several years a defendant in a class action (the “Stanwich Case”) brought in the California Superior Court, Los Angeles County. The original plaintiffs in that case were persons entitled to receive regular payments (the “Settlement Payments”) pursuant to earlier settlements of claims, generally personal injury claims, against unrelated defendants. Stanwich Financial Services Corp. (“Stanwich”), an affiliate of the former chairman of our board of directors, is the entity that was obligated to pay the Settlement Payments. Stanwich defaulted on its payment obligations to the plaintiffs and in June 2001 filed for reorganization under the Bankruptcy Code, in the federal bankruptcy court in Connecticut. By February 2005, we had settled all claims brought against us in the Stanwich Case.

In November 2001, one of the defendants in the Stanwich Case, Jonathan Pardee, asserted claims for indemnity against us in a separate action, which was removed from state court to federal district court in Rhode Island. We filed counterclaims in the Rhode Island federal court against Mr. Pardee, and have filed a separate action, in the same court, against the Rhode Island law firm that represented Mr. Pardee. The litigation between Mr. Pardee and us was stayed for several years through September 2011, awaiting resolution of an adversary action brought against Mr. Pardee in the bankruptcy court, which is hearing the bankruptcy of Stanwich.

Pursuant to an agreement with the representative of creditors in the Stanwich bankruptcy, that adversary action was dismissed. Under that agreement, we paid the bankruptcy estate $800,000 and abandoned our claims against the estate, while the estate has abandoned its adversary action against Mr. Pardee. With the dismissal of the adversary action, all known claims asserted against Mr. Pardee were resolved without his incurring any liability. Accordingly, we believe that this resolution of the adversary action resulted in limitation of our exposure to Mr. Pardee to no more than some portion of his attorneys fees incurred. The stay in the action against us in Rhode Island was subsequently lifted, and the matter was set for trial, to commence September 12, 2014. The issues remaining for trial were the extent of our obligation to indemnify Mr. Pardee. Shortly before trial was to commence we reached a settlement, pursuant to which we paid $5.99 million to Mr. Pardee, and all of his claims against us were fully and finally discharged.

The separate lawsuit between us and Mr. Pardee's Rhode Island law firm has not been resolved. There can be no assurance that we will recover anything against that firm, and it is possible that the counterclaim of that firm against us could result in our incurring liability, in an amount not expected to be material.

Consumer Litigation. We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Consumers can and do initiate lawsuits against us alleging violations of law applicable to collection of receivables, and such lawsuits sometimes allege that resolution as a class action is appropriate. We are currently defending two such purported class actions, one of which has been settled by agreement with the plaintiffs (such settlement remains subject to approval by the court). For the most part, we have legal and factual defenses to such claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances of each case. We have recorded a liability as of September 30, 2014 with respect to such matters, in the aggregate.

FTC Action. In July 2013, the staff of the U.S. Federal Trade Commission (“FTC”) advised us that they were prepared to recommend that the FTC initiate a lawsuit against us relating to allegedly unfair trade practices, and simultaneously advised that settlement of such issues by consent decree might be achieved. On May 29, 2014, the FTC announced its agreement to settle the matter by filing a lawsuit against us, and requesting, with our consent, that the court enter an agreed judgment against us. The lawsuit arose out of the FTC’s inquiry into our business practices. Under the agreed settlement, we made approximately $1.9 million of restitutionary payments and $1.6 million of account adjustments to our customers in September 2014, paid a $2 million penalty to the federal government in June 2014, and implemented procedural changes, all pursuant to a consent decree that was entered by the court in June 2014.

In General. There can be no assurance as to the outcomes of the matters referenced above. We have recorded a liability as of September 30, 2014, which represents our best estimate of probable incurred losses for legal contingencies, including all of the matters described or referenced above. The amount of losses that may ultimately be incurred cannot be estimated with certainty. However, based on such information as is available to us, we believe that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described or referenced above, as of September 30, 2014, and in excess of the liability we have recorded, is from $0 to $1.3 million.

Accordingly, we believe that the ultimate resolution of such legal proceedings and contingencies, after taking into account our current litigation reserves, should not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the uncertainties inherent in contested proceedings, there can be no assurance that the ultimate resolution of these matters will not significantly exceed the reserves we have accrued; as a result, the outcome of a particular matter may be material to our operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our income for that period.

10. Employee Benefits

9 Months Ended

Sep. 30, 2014

Employee Benefits

Employee Benefits

On March 8, 2002 we acquired MFN Financial Corporation and its subsidiaries in a merger. We sponsor the MFN Financial Corporation Benefit Plan (the “Plan”). Plan benefits were frozen June 30, 2001. The table below sets forth the Plan’s net periodic benefit cost for the three-month and nine-month periods ended September 30, 2014 and 2013.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)						(In thousands)
Components of net periodic cost (benefit)
Service cost	$	–		$	–		$	–		$	–
Interest cost		220			210			660			630
Expected return on assets		(432	)		(335	)		(1,296	)		(1,005	)
Amortization of transition (asset)/obligation		–			–			–			–
Amortization of net (gain) / loss		–			117			–			351
Net periodic cost (benefit)	$	(212	)	$	(8	)	$	(636	)	$	(24	)

We contributed $237,000 to the Plan during the nine-month period ended September 30, 2014 and we do not anticipate making any further contributions for the remainder of 2014.

11. Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

ASC 820, "Fair Value Measurements" clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy.

ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The three levels are defined as follows: level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

In September 2008 we sold automobile contracts in a securitization that was structured as a sale for financial accounting purposes. In that sale, we retained both securities and a residual interest in the transaction that are measured at fair value. In September 2010 we took advantage of improvement in the market for asset-backed securities by re-securitizing the underlying receivables from our unrated September 2008 securitization. We also sold the securities retained from the September 2008 transaction. No gain or loss was recorded as a result of the re-securitization transaction described above. We describe below the valuation methodologies we use for the securities retained and the residual interest in the cash flows of the transaction, as well as the general classification of such instruments pursuant to the valuation hierarchy. The residual interest in such securitization is $135,000 as of September 30, 2014 and $854,000 as of December 31, 2013 and is classified as level 3 in the three-level valuation hierarchy. We determine the value of that residual interest using a discounted cash flow model that includes estimates for prepayments and losses. We used a discount rate of 20% per annum and a cumulative net loss rate of 15% at September 30, 2014 and December 31, 2013. The assumptions we used are based on historical performance of automobile contracts we have originated and serviced in the past, adjusted for current market conditions.

In September 2011, we acquired $217.8 million of finance receivables from Fireside Bank for a purchase price of $199.6 million. The receivables were acquired by our wholly-owned special purpose subsidiary, CPS Fender Receivables, LLC, which issued a note for $197.3 million, with a fair value of $196.5 million. Since the Fireside receivables were originated by another entity with its own underwriting guidelines and procedures, we have elected to account for the Fireside receivables and the related debt secured by those receivables at their estimated fair values so that changes in fair value will be reflected in our results of operations as they occur. Interest income from the receivables and interest expense on the note are included in interest income and interest expense, respectively. Changes to the fair value of the receivables and debt are included in other income. Our level 3, unobservable inputs reflect our own assumptions about the factors that market participants use in pricing similar receivables and debt, and are based on the best information available in the circumstances. They include such inputs as estimated net charge-offs and timing of the amortization of the portfolio of finance receivables. Our estimate of the fair value of the Fireside receivables is performed on a pool basis, rather than separately on each individual receivable. The table below presents a reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	5,686		$	30,319		$	14,476		$	59,668
Payments on finance receivables at fair value		(3,057	)		(8,848	)		(10,930	)		(36,828	)
Charge-offs on finance receivables at fair value		(184	)		(535	)		(740	)		(2,275	)
Discount accretion		722			263			353			1,247
Mark to fair value		35			18			43			(595	)
Balance at end of period	$	3,202		$	21,217		$	3,202		$	21,217


Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	5,392		$	21,907		$	13,117		$	57,107
Principal payments on debt at fair value		(2,363	)		(5,107	)		(10,917	)		(41,365	)
Premium accretion		141			379			631			2,079
Mark to fair value		–			(291	)		339			(933	)
Balance at end of period		3,170			16,888			3,170			16,888
Reduction for payments collected and payable		(592	)		(570	)		(592	)		(570	)
Adjusted balance at end of period	$	2,578		$	16,318		$	2,578		$	16,318

The table below compares the fair values of the Fireside receivables and the related secured debt to their contractual balances for the periods shown:

	September 30, 2014				December 31, 2013
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Fireside receivables portfolio	$	3,202	$	3,202	$	14,786	$	14,476

Debt secured by Fireside receivables portfolio		–		3,170		–		13,117

The fair value of the debt secured by the Fireside receivables portfolio represents the discounted value of future cash flows that we estimate will become due to the lender in accordance with the terms of our financing for the Fireside portfolio. The terms of the debt provide for the lenders to receive a share of residual cash flows from the underlying receivables after the contractual balance of the debt is repaid and the Company’s investment in the Fireside portfolio is returned.

Repossessed vehicle inventory, which is included in Other assets on our unaudited condensed consolidated balance sheet, is measured at fair value using level 2 assumptions based on our actual loss experience on sale of repossessed vehicles. At September 30, 2014, the finance receivables related to the repossessed vehicles in inventory totaled $31.3 million. We have applied a valuation adjustment, or loss allowance, of $19.2 million, which is based on a recovery rate of approximately 39%, resulting in an estimated fair value and carrying amount of $12.1 million. The fair value and carrying amount of the repossessed inventory at December 31, 2013 was $10.0 million after applying a valuation adjustment of $14.8 million.

There were no transfers in or out of level 1 or level 2 assets and liabilities for the three months and nine months ended September 30, 2014 and 2013. We have no level 3 assets that are measured at fair value on a non-recurring basis. The table below presents a reconciliation for level 3 assets measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Residual Interest in Securitizations:
Balance at beginning of period	$	260		$	2,246		$	854		$	4,824
Cash paid (received) during period		(209	)		(820	)		(1,039	)		(3,398	)
Included in earnings		84			–			320			–
Balance at end of period	$	135		$	1,426		$	135		$	1,426

The following table provides certain qualitative information about our level 3 fair value measurements for assets and liabilities carried at fair value:

Financial Instrument	Fair Values as of						Inputs as of
	September 30,		December 31,		Valuation	Unobservable	September 30,		December 31,
	2014		2013		Techniques	Inputs	2014		2013
	(In thousands)
Assets:

Finance receivables measured at fair value	$	3,202	$	14,476	Discounted cash flows	Discount rate		15.4%		15.4%
						Cumulative net losses		5.0%		5.0%
						Monthly average prepayments		0.5%		0.5%

Residual interest in securitizations		135		854	Discounted cash flows	Discount rate		20.0%		20.0%
						Cumulative net losses		15.0%		15.0%
						Monthly average prepayments		0.5%		0.5%

Liabilities:

Debt secured by receivables measured at fair value		3,170		13,117	Discounted cash flows	Discount rate		12.2%		12.2%

The estimated fair values of financial assets and liabilities at September 30, 2014 and December31, 2013, were as follows:

	As of September 30, 2014
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	13,136	$	13,136	$	–	$	–	$	13,136
Restricted cash and equivalents		174,634		174,634		–		–		174,634
Finance receivables, net		1,407,809		–		–		1,394,872		1,394,872
Finance receivables measured at fair value		3,202		–		–		3,202		3,202
Residual interest in securitizations		135		–		–		135		135
Accrued interest receivable		21,600		–		–		21,600		21,600
Liabilities:
Warehouse lines of credit	$	59,442	$	–	$	–	$	59,442	$	59,442
Accrued interest payable		2,486		–		–		2,486		2,486
Residual interest financing		12,767		–		–		12,767		12,767
Debt secured by receivables measured at fair value		3,170		–		–		3,170		3,170
Securitization trust debt		1,496,545		–		–		1,496,545		1,496,545
Subordinated renewable notes		15,493		–		–		15,493		15,493

	As of December 31, 2013
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	22,112	$	22,112	$	–	$	–	$	22,112
Restricted cash and equivalents		132,284		132,284		–		–		132,284
Finance receivables, net		1,115,437		–		–		1,100,153		1,100,153
Finance receivables measured at fair value		14,476		–		–		14,476		14,476
Residual interest in securitizations		854		–		–		854		854
Accrued interest receivable		18,670		–		–		18,670		18,670
Liabilities:
Warehouse lines of credit	$	9,452	$	–	$	–	$	9,452	$	9,452
Accrued interest payable		2,908		–		–		2,908		2,908
Residual interest financing		19,096		–		–		19,096		19,096
Debt secured by receivables measured at fair value		13,117		–		–		13,117		13,117
Securitization trust debt		1,177,559		–		–		1,189,086		1,189,086
Senior secured debt, related party		38,559		–		–		38,559		38,559
Subordinated renewable notes		19,142		–		–		19,142		19,142

The following summary presents a description of the methodologies and assumptions used to estimate the fair value of our financial instruments. Much of the information used to determine fair value is highly subjective. When applicable, readily available market information has been utilized. However, for a significant portion of our financial instruments, active markets do not exist. Therefore, significant elements of judgment were required in estimating fair value for certain items. The subjective factors include, among other things, the estimated timing and amount of cash flows, risk characteristics, credit quality and interest rates, all of which are subject to change. Since the fair value is estimated as of September 30, 2014 and December 31, 2013, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

Cash, Cash Equivalents and Restricted Cash and Equivalents

The carrying value equals fair value.

Finance Receivables, net

The fair value of finance receivables is estimated by discounting future cash flows expected to be collected using current rates at which similar receivables could be originated.

Finance Receivables Measured at Fair Value and Debt Secured by Receivables Measured at Fair Value

The carrying value equals fair value.

Residual Interest in Securitizations

The fair value is estimated by discounting future cash flows using credit and discount rates that we believe reflect the estimated credit, interest rate and prepayment risks associated with similar types of instruments.

Accrued Interest Receivable and Payable

The carrying value approximates fair value.

Warehouse Lines of Credit, Residual Interest Financing, Senior Secured Debt, Related Party and Subordinated Renewable Notes

The carrying value approximates fair value because the related interest rates are estimated to reflect current market conditions for similar types of secured instruments.

Securitization Trust Debt

The fair value is estimated by discounting future cash flows using interest rates that we believe reflect the current market rates.

1. Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Description of Business

Description of Business

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Other Income

Other Income

The following table presents the primary components of Other Income for the three-month and nine-month periods ending September 30, 2014 and 2013:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(In thousands)					(In thousands)
Direct mail revenues	$	1,921		$	1,691	$	5,944		$	5,418
Convenience fee revenue		840			720		2,450			2,235
Recoveries on previously charged-off contracts		39			49		121			153
Sales tax refunds		129			–		360			84
Other		(22	)		444		(325	)		394
Other income for the period	$	2,907		$	2,904	$	8,550		$	8,284

Stock-based Compensation

Stock-based Compensation

The following represents stock option activity for the nine months ended September 30, 2014:

						Weighted
	Number of			Weighted		Average
	Shares			Average		Remaining
	(in thousands)			Exercise Price		Contractual Term
Options outstanding at the beginning of period		10,128		$	3.30	N/A
Granted		2,030			6.59	N/A
Exercised		(1,168	)		2.06	N/A
Forfeited		(103	)		4.58	N/A
Options outstanding at the end of period		10,887		$	4.04	6.24 years

Options exercisable at the end of period		5,719		$	2.53	5.09 years

Purchases of Company Stock

Purchases of Company Stock

New Accounting Pronouncements

New Accounting Pronouncements

Reclassifications

Reclassifications

Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or total shareholders’ equity.

Financial Covenants

Financial Covenants

Finance Receivables and Related Debt Measured at Fair Value

Finance Receivables and Related Debt Measured at Fair Value

Gain on Cancellation of Debt

Gain on Cancellation of Debt

Provision for Contingent Liabilities

Provision for Contingent Liabilities

1. Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Other Income

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(In thousands)					(In thousands)
Direct mail revenues	$	1,921		$	1,691	$	5,944		$	5,418
Convenience fee revenue		840			720		2,450			2,235
Recoveries on previously charged-off contracts		39			49		121			153
Sales tax refunds		129			–		360			84
Other		(22	)		444		(325	)		394
Other income for the period	$	2,907		$	2,904	$	8,550		$	8,284

Stock option activity

						Weighted
	Number of			Weighted		Average
	Shares			Average		Remaining
	(in thousands)			Exercise Price		Contractual Term
Options outstanding at the beginning of period		10,128		$	3.30	N/A
Granted		2,030			6.59	N/A
Exercised		(1,168	)		2.06	N/A
Forfeited		(103	)		4.58	N/A
Options outstanding at the end of period		10,887		$	4.04	6.24 years

Options exercisable at the end of period		5,719		$	2.53	5.09 years

2. Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2014

Finance Receivables

Financial Receivables

	September 30,			December 31,
	2014			2013
Finance Receivables	(In thousands)

Automobile finance receivables, net of unearned interest	$	1,481,410		$	1,182,950
Less: Unearned acquisition fees and originations costs		(18,980	)		(27,887	)
Finance Receivables	$	1,462,430		$	1,155,063

Delinquency status of finance receivables

	September 30,		December 31,
	2014		2013
	(In thousands)
Deliquency Status
Current	$	1,412,427	$	1,125,926
31 - 60 days		38,800		21,421
61 - 90 days		17,398		24,663
91 + days		12,785		10,940
	$	1,481,410	$	1,182,950

Allowance for credit losses

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)						(In thousands)
Balance at beginning of period	$	53,326		$	32,101		$	39,626		$	19,594
Provision for credit losses on finance receivables		27,287			20,220			76,795			52,739
Charge-offs		(29,988	)		(20,952	)		(80,514	)		(47,229	)
Recoveries		3,996			3,095			18,714			9,360
Balance at end of period	$	54,621		$	34,464		$	54,621		$	34,464

Allowance for losses on repossessed inventory

	September 30,			December 31,
	2014			2013
	(In thousands)
Gross balance of repossessions in inventory	$	31,276		$	24,743
Allowance for losses on repossessed inventory		(19,220	)		(14,779	)
Net repossessed inventory included in other assets	$	12,056		$	9,964

3. Finance Receivables Measured at Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Finance Receivables Measured At Fair Value

Finance Receivables measured at fair value

	September 30,		December 31,
	2014		2013
Finance Receivables Measured at Fair Value	(In thousands)

Finance receivables and accrued interest, net of unearned interest	$	3,202	$	14,786
Less: Fair value adjustment		–		(310	)
Finance receivables measured at fair value	$	3,202	$	14,476

Delinquency status of finance receivables measured at fair value

	September 30,		December 31,
	2014		2013
	(In thousands)
Delinquency Status
Current	$	2,783	$	13,421
31 - 60 days		295		878
61 - 90 days		84		253
91 + days		40		234
	$	3,202	$	14,786

4. Securitization Trust Debt (Tables)

9 Months Ended

Sep. 30, 2014

Securitization Trust Debt

Securitization trust debt

										Weighted
										Average
	Final	Receivables				Outstanding		Outstanding		Contractual
	Scheduled	Pledged at				Principal at		Principal at		Interest Rate at
	Payment	September 30,		Initial		September 30,		December 31,		September 30,
Series	Date (1)	2014 (2)		Principal		2014		2013		2014
	(Dollars in thousands)
Page Five Funding	January 2018	$	5,781	$	46,058	$	3,862	$	9,358		9.28%
CPS 2011-A	April 2018		15,687		104,546		11,665		24,526		2.86%
CPS 2011-B	September 2018		27,632		111,046		27,235		44,433		4.53%
CPS 2011-C	March 2019		35,992		119,400		35,773		56,271		4.92%
CPS 2012-A	June 2019		42,577		155,000		41,703		65,051		3.44%
CPS 2012-B	September 2019		58,409		141,500		57,490		86,254		3.14%
CPS 2012-C	December 2019		64,289		147,000		63,376		93,006		2.48%
CPS 2012-D	March 2020		77,951		160,000		77,234		108,815		2.14%
CPS 2013-A	June 2020		110,393		185,000		109,937		142,842		2.00%
CPS 2013-B	September 2020		133,324		205,000		131,358		172,499		2.45%
CPS 2013-C	December 2020		150,069		205,000		147,671		191,504		2.64%
CPS 2013-D	March 2021		148,167		183,000		144,868		183,000		2.36%
CPS 2014-A	June 2021		159,479		180,000		155,381		–		1.98%
CPS 2014-B	September 2021		192,600		202,500		189,117		–		1.82%
CPS 2014-C (3)	December 2021		182,936		273,000		273,000		–		2.05%
		$	1,405,286	$	2,418,050	$	1,469,670	$	1,177,559

____________

(1)

(2)

Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet.

(3)

An additional $87.8 million of receivables were pledged to CPS 2014-C in October 2014.

5. Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt Outstanding

			Amount Outstanding at
			September 30,		December 31,
			2014		2013
			(In thousands)
Description	Interest Rate	Maturity

Warehouse lines of credit	5.73% over one month Libor (Minimum 6.73%)	March 2017	$	27,545	$	9,452

	5.50% over one month Libor (Minimum 6.25%)	August 2017		31,897		–

Residual interest financing	11.75% over one month Libor	April 2018		12,767		19,096

Debt secured by receivables measured at fair value	n/a	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013, with residual payments extending through 2016		3,170		13,117

Senior secured debt, related party	13.00%	n/a		–		37,128

	5.00%	n/a		–		1,431

Subordinated renewable notes	Weighted average rate of 10.8% and 12.5% at September 30, 2014 and December 31, 2013, respectively	Weighted average maturity of May 2016 and July 2015 at September 30, 2014 and December 31, 2013, respectively		15,493		19,142
			$	90,872	$	99,366

6. Interest Income and Interest Expense (Tables)

9 Months Ended

Sep. 30, 2014

Interest Income And Interest Expense Tables

Interest income

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Interest on finance receivables	$	73,781	$	60,462	$	206,761	$	167,416
Residual interest income		84		–		320		–
Other interest income		–		–		1		10
Interest income	$	73,865	$	60,462	$	207,082	$	167,426

Interest expense

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)

Securitization trust debt	$	9,582	$	8,357	$	28,279	$	25,725
Warehouse lines of credit		1,531		1,447		3,646		4,026
Senior secured debt, related party		–		1,599		1,651		6,474
Debt secured by receivables at fair value		150		623		683		3,435
Residual interest financing		462		1,079		1,545		2,666
Subordinated renewable notes		514		748		1,758		2,474
Interest expense	$	12,239	$	13,853	$	37,562	$	44,800

11. Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	5,686		$	30,319		$	14,476		$	59,668
Payments on finance receivables at fair value		(3,057	)		(8,848	)		(10,930	)		(36,828	)
Charge-offs on finance receivables at fair value		(184	)		(535	)		(740	)		(2,275	)
Discount accretion		722			263			353			1,247
Mark to fair value		35			18			43			(595	)
Balance at end of period	$	3,202		$	21,217		$	3,202		$	21,217


Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	5,392		$	21,907		$	13,117		$	57,107
Principal payments on debt at fair value		(2,363	)		(5,107	)		(10,917	)		(41,365	)
Premium accretion		141			379			631			2,079
Mark to fair value		–			(291	)		339			(933	)
Balance at end of period		3,170			16,888			3,170			16,888
Reduction for payments collected and payable		(592	)		(570	)		(592	)		(570	)
Adjusted balance at end of period	$	2,578		$	16,318		$	2,578		$	16,318

Comparision of fair values of the Fireside receivables and the related secured debt

	September 30, 2014				December 31, 2013
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)

Fireside receivables portfolio	$	3,202	$	3,202	$	14,786	$	14,476

Debt secured by Fireside receivables portfolio		–		3,170		–		13,117

Reconciliation for level 3 assets

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Residual Interest in Securitizations:
Balance at beginning of period	$	260		$	2,246		$	854		$	4,824
Cash paid (received) during period		(209	)		(820	)		(1,039	)		(3,398	)
Included in earnings		84			–			320			–
Balance at end of period	$	135		$	1,426		$	135		$	1,426

Qualitative information about level 3 fair value measurements

Financial Instrument	Fair Values as of						Inputs as of
	September 30,		December 31,		Valuation	Unobservable	September 30,		December 31,
	2014		2013		Techniques	Inputs	2014		2013
	(In thousands)
Assets:

Finance receivables measured at fair value	$	3,202	$	14,476	Discounted cash flows	Discount rate		15.4%		15.4%
						Cumulative net losses		5.0%		5.0%
						Monthly average prepayments		0.5%		0.5%

Residual interest in securitizations		135		854	Discounted cash flows	Discount rate		20.0%		20.0%
						Cumulative net losses		15.0%		15.0%
						Monthly average prepayments		0.5%		0.5%

Liabilities:

Debt secured by receivables measured at fair value		3,170		13,117	Discounted cash flows	Discount rate		12.2%		12.2%

Estimated fair values of financial assets and liabilities

	As of September 30, 2014
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	13,136	$	13,136	$	–	$	–	$	13,136
Restricted cash and equivalents		174,634		174,634		–		–		174,634
Finance receivables, net		1,407,809		–		–		1,394,872		1,394,872
Finance receivables measured at fair value		3,202		–		–		3,202		3,202
Residual interest in securitizations		135		–		–		135		135
Accrued interest receivable		21,600		–		–		21,600		21,600
Liabilities:
Warehouse lines of credit	$	59,442	$	–	$	–	$	59,442	$	59,442
Accrued interest payable		2,486		–		–		2,486		2,486
Residual interest financing		12,767		–		–		12,767		12,767
Debt secured by receivables measured at fair value		3,170		–		–		3,170		3,170
Securitization trust debt		1,496,545		–		–		1,496,545		1,496,545
Subordinated renewable notes		15,493		–		–		15,493		15,493

	As of December 31, 2013
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	22,112	$	22,112	$	–	$	–	$	22,112
Restricted cash and equivalents		132,284		132,284		–		–		132,284
Finance receivables, net		1,115,437		–		–		1,100,153		1,100,153
Finance receivables measured at fair value		14,476		–		–		14,476		14,476
Residual interest in securitizations		854		–		–		854		854
Accrued interest receivable		18,670		–		–		18,670		18,670
Liabilities:
Warehouse lines of credit	$	9,452	$	–	$	–	$	9,452	$	9,452
Accrued interest payable		2,908		–		–		2,908		2,908
Residual interest financing		19,096		–		–		19,096		19,096
Debt secured by receivables measured at fair value		13,117		–		–		13,117		13,117
Securitization trust debt		1,177,559		–		–		1,189,086		1,189,086
Senior secured debt, related party		38,559		–		–		38,559		38,559
Subordinated renewable notes		19,142		–		–		19,142		19,142

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

+ References+ Details

1. Summary of Significant Accounting Policies - Schedule of Other Income (Details-Other Income) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Primary components of Other Income
Other income for the period	$ 2,907	$ 2,904	$ 8,550	$ 8,284
Direct Mail Revenues
Primary components of Other Income
Other income for the period	1,921	1,691	5,944	5,418
Convenience Fee Revenue
Primary components of Other Income
Other income for the period	840	720	2,450	2,235
Recoveries on previously charged-off contracts
Primary components of Other Income
Other income for the period	39	49	121	153
Sales Tax Refunds
Primary components of Other Income
Other income for the period	129	0	360	84
Other Income
Primary components of Other Income
Other income for the period	$ (22)	$ 444	$ (325)	$ 394

1. Summary of Significant Accounting Policies (Details-Options outstanding) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Number of Shares
Outstanding options, beginning balance	10,128,000
Granted	2,030,000
Exercised	(1,168,000)	(1,116,000)
Forfeited	(103,000)
Outstanding options, ending balance	10,887,000
Options exercisable	5,719,000
Weighted Average Exercise Price
Outstanding options, beginning balance	$ 3.30
Granted	$ 6.59
Exercised	$ 2.06
Forfeited	$ 4.58
Outstanding options, ending balance	$ 4.04
Options exercisable	$ 2.53
Weighted Average Remaining Contractual Term
Outstanding options, ending balance	6 years 2 months 26 days
Options exercisable	5 years 1 month 2 days

1. Summary of Significant Accounting Policies (Details Narrative) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accounting Policies [Abstract]
Stock based compensation costs			$ 2,578	$ 2,939
Unrecognized stock-based compensation costs	15,200		15,200
Unrecognized stock-based compensation costs amortization period			3 years 2 months 12 days
Aggregate intrinsic value outstanding	29,100		29,100
Aggregate intrinsic value exercisable	23,000		23,000
Options Exercised			1,168,000	1,116,000
Shares available for future grants	2,100,000		2,100,000
Per share weighted average fair value of stock options granted			$ 2.73
Repurchase of common stock, shares repurchased			73,778	323,674
Repurchase of common stock average share price			$ 7.91	$ 7.68
Gain on cancellation of debt	$ 0	$ 0	$ 0	$ 10,947

2. Finance Receivables (Details-Finance receivables) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Finance Receivables
Automobile finance receivables, net of unearned interest	$ 1,481,410	$ 1,182,950
Less: Unearned acquisition fees and discounts	(18,980)	(27,887)
Finance Receivables	$ 1,462,430	$ 1,155,063

2. Finance Receivables (Details-Delinquency status) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Deliquency Status
Current	$ 1,412,427	$ 1,125,926
31 - 60 days	38,800	21,421
61 - 90 days	17,398	24,663
91 + days	12,785	10,940
Finance receivables	$ 1,481,410	$ 1,182,950

2. Finance Receivables (Details-Allowance for finance credit losses) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014	Mar. 31, 2013
Finance Receivables
Balance at beginning of period	$ 53,326	$ 32,101	$ 39,626	$ 19,594	$ 44,652	$ 24,881
Provision for credit losses on finance receivables	27,287	20,220	76,795	52,739
Charge-offs	(29,988)	(20,952)	(80,514)	(47,229)
Recoveries	3,996	3,095	18,714	9,360
Balance at end of period	$ 54,621	$ 34,464	$ 54,621	$ 34,464	$ 44,652	$ 24,881

2. Finance Receivables (Details-Repossessions) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Finance Receivables
Gross balance of repossessions in inventory	$ 31,276	$ 24,743
Allowance for losses on repossessed inventory	(19,220)	(14,779)
Net repossessed inventory included in other assets	$ 12,056	$ 9,964

3. Finance Receivables Measured at Fair Value (Details-Finance receivables) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Finance Receivables Measured At Fair Value
Finance receivables and accrued interest, net of unearned interest	$ 3,202	$ 14,786
Less: Fair value adjustment	0	(310)
Finance receivables measured at fair value	$ 3,202	$ 14,476

4. Securitization Trust Debt (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
"Securitization trust debt," and components of debt
Receivables Pledged at end of period	$ 1,405,286
Initial Principal	2,418,050
Outstanding Principal	1,469,670	1,177,559
Page Five Funding [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	January 2018
Receivables Pledged at end of period	5,781
Initial Principal	46,058
Outstanding Principal	3,862	9,358
Weighted Average Contractual Interest Rate end of period	9.28%
CPS 2011-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	April 2018
Receivables Pledged at end of period	15,687
Initial Principal	104,546
Outstanding Principal	11,665	24,526
Weighted Average Contractual Interest Rate end of period	2.86%
CPS 2011-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2018
Receivables Pledged at end of period	27,632
Initial Principal	111,046
Outstanding Principal	27,235	44,433
Weighted Average Contractual Interest Rate end of period	4.53%
CPS 2011-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2019
Receivables Pledged at end of period	35,992
Initial Principal	119,400
Outstanding Principal	35,773	56,271
Weighted Average Contractual Interest Rate end of period	4.92%
CPS 2012-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2019
Receivables Pledged at end of period	42,577
Initial Principal	155,000
Outstanding Principal	41,703	65,051
Weighted Average Contractual Interest Rate end of period	3.44%
CPS 2012-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2019
Receivables Pledged at end of period	58,409
Initial Principal	141,500
Outstanding Principal	57,490	86,254
Weighted Average Contractual Interest Rate end of period	3.14%
CPS 2012-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2019
Receivables Pledged at end of period	64,289
Initial Principal	147,000
Outstanding Principal	63,376	93,006
Weighted Average Contractual Interest Rate end of period	2.48%
CPS 2012-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2020
Receivables Pledged at end of period	77,951
Initial Principal	160,000
Outstanding Principal	77,234	108,815
Weighted Average Contractual Interest Rate end of period	2.14%
CPS 2013-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2020
Receivables Pledged at end of period	110,393
Initial Principal	185,000
Outstanding Principal	109,937	142,842
Weighted Average Contractual Interest Rate end of period	2.00%
CPS 2013-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2020
Receivables Pledged at end of period	133,324
Initial Principal	205,000
Outstanding Principal	131,358	172,499
Weighted Average Contractual Interest Rate end of period	2.45%
CPS 2013-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2020
Receivables Pledged at end of period	150,069
Initial Principal	205,000
Outstanding Principal	147,671	191,504
Weighted Average Contractual Interest Rate end of period	2.64%
CPS 2013-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2021
Receivables Pledged at end of period	148,167
Initial Principal	183,000
Outstanding Principal	144,868	183,000
Weighted Average Contractual Interest Rate end of period	2.36%
CPS 2014-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2021
Receivables Pledged at end of period	159,479
Initial Principal	180,000
Outstanding Principal	155,381	0
Weighted Average Contractual Interest Rate end of period	1.98%
CPS 2014-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2021
Receivables Pledged at end of period	192,600
Initial Principal	202,500
Outstanding Principal	189,117	0
Weighted Average Contractual Interest Rate end of period	1.82%
CPS 2014-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2021
Receivables Pledged at end of period	182,936
Initial Principal	273,000
Outstanding Principal	$ 273,000	$ 0
Weighted Average Contractual Interest Rate end of period	2.05%

4. Securitization Trust Debt (Details Narrative) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Securitization Trust Debt
Restricted Cash for securitization trust debt	$ 174,600
Pre-funding proceeds	87,800
Expected debt payments 2014	152,600
Expected debt payments 2015	559,000
Expected debt payments 2016	386,000
Expected debt payments 2017	225,300
Expected debt payments 2018	108,100
Expected debt payments 2019	38,700
Receivables pledged	$ 87,800

5. Debt (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 90,872	$ 99,366
Warehouse lines of credit
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	27,545	9,452
Interest rate	5.73% over one month Libor (Minimum 6.73%)
Maturity date	March 2017
Warehouse lines of credit (2)
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	31,897	0
Interest rate	5.50% over one month Libor (Minimum 6.25%)
Maturity date	August 2017
Residual interest financing
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	12,767	19,096
Interest rate	11.75% over one month Libor
Maturity date	April 2018
Debt secured by receivables measured at fair value
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	3,170	13,117
Interest rate	n/a
Maturity date	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013, with residual payments extending through 2016
Senior Secured Debt Related Party 1
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	0	37,128
Interest rate	13.00%
Maturity date	n/a
Senior Secured Debt Related Party (2)
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	0	1,431
Interest rate	5.00%
Maturity date	n/a
Subordinated renewable notes
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 15,493	$ 19,142
Interest rate	Weighted average rate of 10.8% and 12.5% at September 30, 2014 and December 31, 2013, respectively
Maturity date	Weighted average maturity of May 2016 and July 2015 at September 30, 2014 and December 31, 2013, respectively

6. Interest Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Components of interest income
Interest on Finance Receivables	$ 73,781	$ 60,462	$ 206,761	$ 167,416
Residual interest income	84	0	320	0
Other interest income	0	0	1	10
Interest income	$ 73,865	$ 60,462	$ 207,082	$ 167,426

6. Interest Expense (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest Expense Details
Securitization trust debt	$ 9,582	$ 8,357	$ 28,279	$ 25,725
Warehouse lines of credit	1,531	1,447	3,646	4,026
Senior secured debt, related party	0	1,599	1,651	6,474
Debt secured by receivables at fair value	150	623	683	3,435
Residual interest financing	462	1,079	1,545	2,666
Subordinated renewable notes	514	748	1,758	2,474
Total interest expense	$ 12,239	$ 13,853	$ 37,562	$ 44,800

7. Earnings Per Share (Details)	3 Months Ended		9 Months Ended
7. Earnings Per Share (Details)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income per share:
Weighted average common shares - basic	25,290,000	21,795,000	24,895,000	20,959,000
Incremental common shares attibutable to exercise of outstanding options and warrants	6,750,000	9,422,000	7,126,000	10,591,000
Weighted average common shares - diluted	32,040,000	31,217,000	32,021,000	31,550,000

- Definition

Additional shares included in the calculation of diluted EPS as a result of the potentially dilutive effect of call options and warrants using the treasury stock method.

+ References+ Details

7. Earnings Per Share (Details Narrative)	3 Months Ended		9 Months Ended
7. Earnings Per Share (Details Narrative)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income per share:
Antidilutive common stock equivalents	4,000,000	3,100,000	3,100,000	1,900,000

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

8. Income Taxes (Details Narrative) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0		$ 0		$ 0
Deferred tax asset	46,600		46,600
U.S. federal deferred tax assets	35,200		35,200
State deferred tax assets	11,400		11,400
Net operating loss carryforward	120,000		120,000
Income tax expense	$ 6,000	$ 4,700	$ 16,400	$ 11,200
Effective income tax rate	44.00%	44.00%	43.00%	43.00%

- Definition

Amount of current federal tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

- Definition

Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards expected to be realized or consumed within one year or operating cycle, if longer.

+ References+ Details

10. Employee Benefits (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Components of net periodic cost (benefit)
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	220	210	660	630
Expected return on assets	(432)	(335)	(1,296)	(1,005)
Amortization of transition (asset)/obligation	0	0	0	0
Amortization of net (gain)/loss	0	117	0	351
Net periodic cost (benefit)	$ (212)	$ (8)	$ (636)	$ (24)

11. Fair Value measurements (Details-Finance receivables) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014	Mar. 31, 2013
Finance Receivables Measured at Fair Value:
Balance at beginning of period	$ 5,686	$ 30,319	$ 14,476	$ 59,668	$ 9,058	$ 43,021
Payments on finance receivables at fair value	(3,057)	(8,848)	(10,930)	(36,828)
Charge-offs on finance receivables at fair value	(184)	(535)	(740)	(2,275)
Discount accretion	722	263	353	1,247
Mark to fair value	35	18	43	(595)
Balance at end of period	3,202	21,217	3,202	21,217	9,058	43,021
Balance at beginning of period	5,392	21,907	13,117	57,107	8,576	40,387
Principal payments on debt at fair value	(2,363)	(5,107)	(10,917)	(41,365)
Premium accretion	141	379	631	2,079
Mark to fair value	0	(291)	339	(933)
Balance at end of period	3,170	16,888	3,170	16,888	8,576	40,387
Reduction for principal payments collected and payable	(592)	(570)	(592)	(570)
Adjusted balance at end of period	$ 2,578	$ 16,318	$ 2,578	$ 16,318

11. Fair Value measurements (Details-Residual interest) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014	Mar. 31, 2013
Residual Interest in Securitizations:
Balance at beginning of period	$ 260	$ 2,246	$ 854	$ 4,824	$ 445	$ 3,505
Cash paid (received) during period	(209)	(820)	(1,039)	(3,398)
Included in earnings	84	0	320	0
Balance at end of period	$ 135	$ 1,426	$ 135	$ 1,426	$ 445	$ 3,505

11. Fair Value Measurements (Details-Level 3 fair value measurements) (USD $) In Thousands, unless otherwise specified									9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014 Finance receivables	Dec. 31, 2013 Finance receivables	Sep. 30, 2014 Residual interest in securitizations	Dec. 31, 2013 Residual interest in securitizations	Sep. 30, 2014 DebtSecuredReceivablesMember	Dec. 31, 2013 Debt secured by receivables measured at fair value
Finance receivables measured at fair value	$ 3,202	$ 5,686	$ 9,058	$ 14,476	$ 21,217	$ 30,319	$ 43,021	$ 59,668	$ 3,202	$ 14,476
Residual interest in securitizations	135			854							135	854
Debt secured by receivables measured at fair value	$ 3,170			$ 13,117									$ 3,170	$ 13,117
Valuation Techniques and Unobservable Inputs									Discounted cash flows; Discount rate 15.4%, Cumulative net losses 5.0%, Monthly average prepayments 0.5%	Discounted cash flows; Discount rate 15.4%, Cumulative net losses 5.0%, Monthly average prepayments 0.5%	Discounted cash flows; Discount rate 20.0%, Cumulative net losses 15.0%, Monthly average prepayments 0.5%	Discounted cash flows; Discount rate 20.0%, Cumulative net losses 15.0%, Monthly average prepayments 0.5%	Discounted cash flows, Discount rate 12.2%	Discounted cash flows, Discount rate 12.2%

11. Fair Value measurements (Details-fair values) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Assets:
Cash and cash equivalents	$ 13,136			$ 22,112
Restricted cash and equivalents	174,634			132,284
Finance receivables, net	1,394,872			1,100,153
Finance receivables measured at fair value	3,202	5,686	9,058	14,476	21,217	30,319	43,021	59,668
Residual interest in securitizations	135			854
Accrued interest receivable	21,600			18,670
Liabilities:
Warehouse lines of credit	59,442			9,452
Accrued interest payable	2,486			2,908
Residual interest financing	12,767			19,096
Debt secured by receivables measured at fair value	3,170			13,117
Securitization trust debt	1,496,545			1,189,086
Senior secured debt, related party				38,559
Subordinated renewable notes	15,493			19,142
Carrying Value [Member]
Assets:
Cash and cash equivalents	13,136			22,112
Restricted cash and equivalents	174,634			132,284
Finance receivables, net	1,407,809			1,115,437
Finance receivables measured at fair value	3,202			14,476
Residual interest in securitizations	135			854
Accrued interest receivable	21,600			18,670
Liabilities:
Warehouse lines of credit	59,442			9,452
Accrued interest payable	2,486			2,908
Residual interest financing	12,767			19,096
Debt secured by receivables measured at fair value	3,170			13,117
Securitization trust debt	1,496,545			1,177,559
Senior secured debt, related party				38,559
Subordinated renewable notes	15,493			19,142
Fair Value Inputs Level 1 [Member]
Assets:
Cash and cash equivalents	13,136			22,112
Restricted cash and equivalents	174,634			132,284
Finance receivables, net	0			0
Finance receivables measured at fair value	0			0
Residual interest in securitizations	0			0
Accrued interest receivable	0			0
Liabilities:
Warehouse lines of credit	0			0
Accrued interest payable	0			0
Residual interest financing	0			0
Debt secured by receivables measured at fair value	0			0
Securitization trust debt	0			0
Senior secured debt, related party				0
Subordinated renewable notes	0			0
Level 2 [Member]
Assets:
Cash and cash equivalents	0			0
Restricted cash and equivalents	0			0
Finance receivables, net	0			0
Finance receivables measured at fair value	0			0
Residual interest in securitizations	0			0
Accrued interest receivable	0			0
Liabilities:
Warehouse lines of credit	0			0
Accrued interest payable	0			0
Residual interest financing	0			0
Debt secured by receivables measured at fair value	0			0
Securitization trust debt	0			0
Senior secured debt, related party				0
Subordinated renewable notes	0			0
Level 3 [Member]
Assets:
Cash and cash equivalents	0			0
Restricted cash and equivalents	0			0
Finance receivables, net	1,394,872			1,100,153
Finance receivables measured at fair value	3,202			14,476
Residual interest in securitizations	135			854
Accrued interest receivable	21,600			18,670
Liabilities:
Warehouse lines of credit	59,442			9,452
Accrued interest payable	2,486			2,908
Residual interest financing	12,767			19,096
Debt secured by receivables measured at fair value	3,170			13,117
Securitization trust debt	1,496,545			1,189,086
Senior secured debt, related party				38,559
Subordinated renewable notes	$ 15,493			$ 19,142

5. Debt (Details Narrative) (Secured Debt [Member], USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended
	Jan. 31, 2014	Mar. 31, 2014
Secured Debt [Member]
Senior secured debt paid to related party	$ 10,000	$ 28,400

9. Legal Proceedings (Details Narrative) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Provision for legal proceedings and contingencies	$0 to $1.3 million
Pardee [Member]
Payments on litigation	$ 5,990
FTC [Member] \| Restitutionary Payments [Member]
Payments on litigation	1,900
FTC [Member] \| Account Adjustments [Member]
Payments on litigation	1,600
FTC [Member] \| Penalty [Member]
Payments on litigation	$ 2,000

3. Finance Receivables Measured at Fair Value (Details-Delinquency status) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Total finance receivables measured at fair value	$ 3,202	$ 14,786
Current
Total finance receivables measured at fair value	2,783	13,421
31-60 days
Total finance receivables measured at fair value	295	878
61-90 days
Total finance receivables measured at fair value	84	253
91+ days
Total finance receivables measured at fair value	$ 40	$ 234

10. Employee Benefits (Details Narrative) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Employee Benefits
Plan contribution	$ 237
Future plan contribution	$ 0

11. Fair Value measurements (Details-Fireside receivables) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Contractual Balance [Member]
Fair values of the Fireside receivables and the related secured debt to their contractual balances
Fireside receivables portfolio	$ 3,202	$ 14,786
Debt secured by Fireside receivables portfolio	0	0
Fair Value [Member]
Fair values of the Fireside receivables and the related secured debt to their contractual balances
Fireside receivables portfolio	3,202	14,476
Debt secured by Fireside receivables portfolio	$ 3,170	$ 13,117