UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
                               (Amendment No. 2)*


                        CONSUMER PORTFOLIO SERVICES, INC.
                 ---------------------------------------------
                                (Name of Issuer)


                           Common Stock, No Par Value
                 -----------------------------------------------
                         (Title of Class of Securities)



                                    210502100
                                ----------------
                                 (CUSIP Number)


*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter disclosure
provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).

                         Continued on following page(s)
                               Page 1 of 11 Pages
                              Exhibit Index: Page 9




                                  SCHEDULE 13G

CUSIP No. 210502100                                           Page 2 of 11 Pages



1       Name of Reporting Person
        S.S. or I.R.S. Identification No. of Above Person

               ANGELO, GORDON & CO., L.P.

2       Check the Appropriate Box If a Member of a Group*
                                            a.  [_]
                                            b.  [X]

3       SEC Use Only

4       Citizenship or Place of Organization

               DELAWARE

                      5      Sole Voting Power
 Number of                          0
   Shares
Beneficially          6      Shared Voting Power
  Owned By                          39,200
    Each
  Reporting           7      Sole Dispositive Power
   Person                           0
    With
                      8      Shared Dispositive Power
                                    97,200

9       Aggregate Amount Beneficially Owned by Each Reporting Person

                                    0

10      Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares*[_]

11      Percent of Class Represented By Amount in Row (9)

                             0.0%

12      Type of Reporting Person*

               BD, IA, PN





                                  SCHEDULE 13G

CUSIP No. 210502100                                           Page 3 of 11 Pages



1       Name of Reporting Person
        S.S. or I.R.S. Identification No. of Above Person

               JOHN M. ANGELO

2       Check the Appropriate Box If a Member of a Group*
                                            a.  [_]
                                            b.  [X]

3       SEC Use Only

4       Citizenship or Place of Organization

               UNITED STATES

                      5      Sole Voting Power
 Number of                          50,000
   Shares
Beneficially          6      Shared Voting Power
  Owned By                          39,200
    Each
  Reporting           7      Sole Dispositive Power
   Person                           50,000
    With
                      8      Shared Dispositive Power
                                    121,000

9       Aggregate Amount Beneficially Owned by Each Reporting Person

                                    50,000

10      Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares*[_]

11      Percent of Class Represented By Amount in Row (9)

                             0.4%

12      Type of Reporting Person*

               IN, HC







                                  SCHEDULE 13G

CUSIP No. 210502100                                           Page 4 of 11 Pages



1       Name of Reporting Person
        S.S. or I.R.S. Identification No. of Above Person

               MICHAEL L. GORDON

2       Check the Appropriate Box If a Member of a Group*
                                            a.  [_]
                                            b.  [X]

3       SEC Use Only

4       Citizenship or Place of Organization

               UNITED STATES

                      5      Sole Voting Power
 Number of                          0
   Shares
Beneficially          6      Shared Voting Power
  Owned By                          39,200
    Each
  Reporting           7      Sole Dispositive Power
   Person                           0
    With
                      8      Shared Dispositive Power
                                    42,200

9       Aggregate Amount Beneficially Owned by Each Reporting Person

                                    9,600

10      Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares*[_]

11      Percent of Class Represented By Amount in Row (9)

                             0.1%

12      Type of Reporting Person*

               IN, HC





                                                                          Page 5


Item 1(a)      Name of Issuer:

               Consumer Portfolio Services, Inc. (the "Issuer").

Item 1(b)      Address of the Issuer's Principal Executive Offices:

               2 Ada, Suite 100, Irvine, California 92718

Item 2(a)      Name of Person Filing:

               This  statement  is filed on  behalf of the  following  reporting
               persons (the "Reporting Persons"): (i) Angelo, Gordon & Co., L.P.
               ("Angelo,  Gordon"),  (ii) John M. Angelo, in his capacities as a
               general partner of AG Partners, L.P., the sole general partner of
               Angelo, Gordon, and the chief executive officer of Angelo, Gordon
               and (iii)  Michael  L.  Gordon,  in his  capacities  as the other
               general partner of AG Partners, L.P., the sole general partner of
               Angelo,  Gordon,  and the  chief  operating  officer  of  Angelo,
               Gordon.

Item 2(b)      Address of Principal Business Office or, if none, Residence:

     (i)       The principal business office of Angelo, Gordon is located at 245
               Park Avenue, New York, NY 10167.

     (ii)      The address of the principal business office of Mr. Angelo is 245
               Park Avenue, New York, NY 10167.

     (iii)     The address of the principal business office of Mr. Gordon is 245
               Park Avenue, New York, NY 10167.

Item 2(c)      Citizenship:

     (i)       Angelo, Gordon is a Delaware limited partnership.

     (ii)      Mr. Angelo is a citizen of the United States.

     (iii)     Mr. Gordon is a citizen of the United States.

Item 2(d)      Title of Class of Securities:

               Common Stock, no par value (the "Shares").

Item 2(e)      CUSIP Number:

               210502100




                                                                          Page 6


Item 3.        If  this  statement  is  filed  pursuant  to  Rule  13d-1(b),  or
               13d-2(b), check whether the person filing is a:

     (i)       Angelo, Gordon is a broker-dealer  registered under Section 15 of
               the Act and an investment adviser registered under Section 203 of
               the Investment Advisers Act of 1940.

     (ii)      Mr. Angelo is a "parent holding company."

     (iii)     Mr. Gordon is a "parent holding company."

Item 4.        Ownership:

 (a)           Amount Beneficially Owned:

     (i)       As of December  31,  1996,  Angelo,  Gordon may be deemed to have
               voting and dispositive powers with respect to 39,200 Shares owned
               by an employee benefit plan sponsored by Angelo, Gordon for which
               Mr.   Angelo  and  Mr.   Gordon  are  trustees  with  voting  and
               dispositive  powers. In addition thereto,  Angelo,  Gordon may be
               deemed to have dispositive  powers,  but not voting powers,  with
               respect to 58,000  Shares owned by clients of Angelo,  Gordon for
               whom Mr.  Angelo or Mr.  Gordon have been given such  dispositive
               powers.

     (ii)      Mr. Angelo is the  beneficial  owner of 50,000 Shares held in his
               individual  retirement account.  In addition thereto,  Mr. Angelo
               may be deemed to have voting and dispositive  powers with respect
               to the 39,200 Shares referred to in paragraph (a)(i) above. Also,
               Mr. Angelo has dispositive  powers,  but not voting powers,  with
               respect to 81,800 Shares owned by clients of Angelo,  Gordon. Mr.
               Angelo is the chief executive officer of Angelo,  Gordon and is a
               general partner of AG Partners, L.P., the sole general partner of
               Angelo, Gordon.

     (iii)     Mr. Gordon is the  beneficial  owner of 9,600 Shares held for his
               benefit in an employee benefit plan account. In addition thereto,
               Mr.  Gordon may be deemed to have voting and  dispositive  powers
               with respect to the 39,200 Shares referred to in paragraph (a)(i)
               above,  of which 9,600  Shares are for his benefit as  previously
               stated.  Also, Mr. Gordon has dispositive  powers, but not voting
               powers,  with respect to 3,000 Shares owned by clients of Angelo,
               Gordon.  Mr.  Gordon is the chief  operating  officer  of Angelo,
               Gordon and is the other general partner of AG Partners, L.P., the
               sole general partner of Angelo, Gordon.

 (b)           Percent of Class:

               The number of Shares deemed to be  beneficially  owned by Angelo,
               Gordon, Mr. Angelo and Mr. Gordon constitute 0.0%, 0.4% and 0.1%,
               respectively of the total number of Shares outstanding.






                                                                          Page 7


 (c)           Number of shares as to which such person has:


                                      Angelo,Gordon    Mr. Angelo    Mr. Gordon
                                      -------------    ----------    ---------- 

(i)       sole power to vote or to 
          direct the vote:                  0           50,000           0

(ii)      shared power to vote or
          to direct the vote:             39,200        39,200         39,200

(iii)     sole power to dispose or
          to direct the disposition of:     0           50,000           0

(iv)      shared power to dispose or
          to direct the disposition of:   97,200       121,000         42,200


Item 5.        Ownership of Five Percent or Less of a Class:

               If this  statement  is being  filed to report the fact that as of
               the  date  hereof  the  reporting  person  has  ceased  to be the
               beneficial  owner  of more  than  five  percent  of the  class of
               securities, check the following [X].

Item 6.        Ownership of More than Five Percent on Behalf of Another Person:

               This Item 6 is not applicable.

Item 7.        Identification   and   Classification  of  the  Subsidiary  Which
               Acquired the  Security  Being  Reported On by the Parent  Holding
               Company:

               See Exhibit B.

Item 8.        Identification and Classification of Members of the Group:

               This Item 8 is not applicable.

Item 9.        Notice of Dissolution of Group:

               This Item 9 is not applicable.

Item 10.       Certification:

               By signing below each of the Reporting Persons certifies that, to
               the best of such person's  knowledge and belief,  the  securities
               referred  to  above  were  acquired  in the  ordinary  course  of
               business and were not acquired for the purpose of and do not have
               the effect of changing or  influencing  the control of the issuer
               of such securities and were not acquired in connection with or as
               a participant in any transaction having such purposes or effect.



                                                                          Page 8


                                   SIGNATURES

               After  reasonable  inquiry  and to the best of my  knowledge  and
belief,  the  undersigned  certifies  that  the  information  set  forth in this
statement is true, complete and correct.


Dated:  February 10, 1997               ANGELO, GORDON & CO., L.P.

                                        By:  AG Partners, L.P.
                                             General Partner

                                             By:  /S/ MICHAEL L. GORDON
                                                  -----------------------------
                                                  Name: Michael L. Gordon
                                                  Title:General Partner



Dated:  February 10, 1997               /S/ JOHN M. ANGELO
                                        ---------------------------------------
                                        JOHN M. ANGELO


Dated:  February 10, 1997               /S/ MICHAEL L. GORDON
                                        ---------------------------------------
                                        MICHAEL L. GORDON




                                                                          Page 9


                                    EXHIBITS

                                                                          Page
                                                                        --------


A.     Joint Filing Agreement, dated February 8, 1995, by and among
       Angelo,  Gordon & Co.,  L.P.,  Mr.  John M.  Angelo  and Mr.
       Michael L. Gordon ..................................................10

B.     Item 7 disclosure ..................................................11




                                                                         Page 10


                                    EXHIBIT A

                             JOINT FILING AGREEMENT



               The  undersigned  hereby agree that the statement on Schedule 13G
with  respect to the Common Stock of Consumer  Portfolio  services,  Inc.  dated
February  8,  1995  is,  and  any  amendments  thereto  signed  by  each  of the
undersigned  shall  be,  filed  on  behalf  of  each  of us  pursuant  to and in
accordance  with the provisions of Rule 13d-1(f)  under the Securities  Exchange
Act of 1934.


Dated:  February 8, 1995                ANGELO, GORDON & CO., L.P.

                                        By:  AG Partners, L.P.
                                             General Partner

                                             By:  /S/  MICHAEL L. GORDON
                                                  -----------------------------
                                                  Name: Michael L. Gordon
                                                  Title:General Partner



                                        /S/ JOHN M. ANGELO
                                        ---------------------------------------
                                        JOHN M. ANGELO


                                        /S/ MICHAEL L. GORDON
                                        ---------------------------------------
                                        MICHAEL L. GORDON


                                                                         Page 11

                                    EXHIBIT B

                                     ITEM 7



               Angelo,  Gordon is the relevant  subsidiary  for which Mr. Angelo
and Mr. Gordon may each be considered a "parent holding company."

               Angelo, Gordon is a broker-dealer  registered under Section 15 of
the Act and an investment adviser  registered under the Investment  Advisers Act
of 1940.