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===================================================================== SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------- FORM 11-K (Mark One) [x] Annual Report pursuant to Section 15(d) of the Securities Exchange of 1934 For the fiscal year ended December 31, 1998 OR [ ] Transition Report pursuant to Section 15(d) of the Securities Exchange Act of 1934 [No Fee Required] For the transition period from ______ to_______ Commission File Number 1-11416 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Consumer Portfolio Services, Inc. 401(k) Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Consumer Portfolio Services, Inc. 16355 Laguna Canyon Road Irvine, CA 92618 =====================================================================

REQUIRED INFORMATION I. Financial Statements. Financial statements and schedules prepared in accordance with the financial reporting requirements of the Employee Retirement Income Security Act of 1974, together with independent auditors' report thereon. II. Exhibits: Consent of Independent Auditors. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this annual report to be signed on its behalf by the undersigned, hereunto duly authorized. Consumer Portfolio Services, Inc. 401(k) Plan Date: June 30, 1999 By: /s/ Doris F. Warren ------------------------- ------------------------------- Member, Administrative Committee

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Financial Statements and Supplemental Schedules December 31, 1998 and 1997 (With Independent Auditors' Report Thereon)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES PAGE Independent Auditors' Report 1 Statements of Net Assets Available for Plan Benefits - December 31, 1998 and 1997 2 Statements of Changes in Net Assets Available for Plan Benefits - Years ended December 31, 1998 and 1997 3 Notes to Financial Statements 4 SCHEDULES 1 Item 27a - Schedule of Assets Held for Investment Purposes - December 31, 1998 14 2 Item 27d - Schedule of Reportable Transactions - Year ended December 31, 1998 15

INDEPENDENT AUDITORS' REPORT The Administrator Consumer Portfolio Services, Inc. 401(k) Plan: We have audited the accompanying statements of net assets available for Plan benefits of the Consumer Portfolio Services, Inc. 401(k) Plan (the Plan) as of December 31, 1998 and 1997 and the related statements of changes in net assets available for Plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for Plan benefits of the Plan as of December 31, 1998 and 1997 and the changes in net assets available for Plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes and schedule of reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG LLP Orange County, California June 4, 1999

CONSUMER PORTFOLIO SERVICES, INC. 401(K) PLAN Statements of Net Assets Available for Plan Benefits December 31, 1998 and 1997 ASSETS 1998 1997 -------------- -------------- Investments, at fair value: Money market fund $ 14,587 147,972 Guaranteed investment contract 209,836 126,085 Pooled separate accounts 1,605,032 858,206 Consumer Portfolio Services, Inc. common stock 558,372 260,664 Participant loans 91,537 31,475 -------------- -------------- 2,479,364 1,424,402 Receivables: Employees' individual rollover 16,198 5,088 Employers' contributions 4,303 -- -------------- -------------- 20,501 5,088 -------------- -------------- Net assets available for Plan benefits $ 2,499,865 1,429,490 ============== ============== See accompanying notes to financial statements. 2

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31, 1998 and 1997 1998 1997 -------------- -------------- Additions to net assets attributed to: Interest $ 8,731 7,041 Net (depreciation) appreciation in fair value of investments (306,893) 76,896 -------------- -------------- (298,162) 83,937 Contributions: Employer 296,183 111,070 Employees 1,044,497 612,906 Employees' individual rollover 143,839 23,487 -------------- -------------- Total additions 1,186,357 831,400 Deductions from net assets attributed to - benefits paid to participants 115,982 154,521 -------------- -------------- Net increase 1,070,375 676,879 Net assets available for Plan benefits: Beginning of year 1,429,490 752,611 -------------- -------------- End of year $ 2,499,865 1,429,490 ============== ============== See accompanying notes to financial statements. 3

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (1) DESCRIPTION OF THE PLAN (a) GENERAL The Consumer Portfolio Services, Inc. (the Plan Sponsor or CPS) 401(k) Plan (the Plan) was established as a profit sharing plan with a cash or deferred arrangement on January 1, 1994. The Plan was restated as of January 1, 1996 to permit investment in the Plan Sponsor's common stock without regard to Section 407(a) of ERISA. The following description provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. The Plan is a defined contribution plan which provides retirement benefits for eligible employees of the Plan Sponsor. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). (b) ADMINISTRATION OF THE PLAN The Plan is administered by the Human Resources Department (the Plan Administrator) of the Plan Sponsor. The Plan Administrator consults with the Board of Directors and other key management of the Plan Sponsor when managing the operations and the administration of the Plan. The assets of the Plan are held in a nondiscretionary trust by Charles Schwab Trust Company (Trustee) and Aetna Life Insurance and Annuity Company (Insurance Company) and are administered under an agreement which requires that the Trustee and Insurance Company hold, administer and distribute the funds of the Plan in accordance with the text of the Plan and the instructions of the Plan Administrator or its designees. (c) CONTRIBUTIONS All employees of the Plan Sponsor are eligible to participate in the Plan after they have completed 90 days of service. Each year participants may contribute up to 15% of their compensation, contributions are subject to certain limitations as defined in the Plan. Participants may roll over into the Plan amounts representing distributions from other qualified plans. Each quarter the Plan Sponsor makes a matching contribution equal to 100% of the participant's pretax contributions not to exceed $600 for the Plan year. Matching contributions shall be made in the form of the Plan Sponsor's common stock. (d) PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contributions, allocations of the Plan Sponsor's matching contributions and the Plan's earnings and losses. Allocations are based on participant earnings or account balances, as defined. Forfeitures are reallocated to other Plan participants who contributed to the Plan in the Plan year of allocation. Reallocations shall be made on a pro-rata basis, based on each participant's pretax contributions for the Plan year. For the year ended December 31, 1998 and 1997, participant forfeitures totaled $27,567 and $27,486, respectively. 4 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (e) VESTING Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Plan Sponsor's matching contributions plus actual earnings thereon is based on years of continuous service. A participant vests at the rate of 20% after two years of credited service and 20% each year thereafter until 100% is reached after six years of credited service. (f) INVESTMENT OPTIONS Contributions may be invested at the participant's direction into the following options: CPS Stock Fund - The fund provides Plan participants with an opportunity to invest in Consumer Portfolio Services, Inc. common stock. Aetna Bond VP, formerly Aetna Income Shares - Seeks to maximize total return over the long-term by investing primarily in long-term debt securities. Aetna Fixed Account - Guarantees a minimum rate of interest. Aetna Growth and Income VP, formerly Aetna Variable Fund - Seeks to maximize long-term total return by investing in a portfolio of common stocks and securities convertible to common stock. Aetna Balanced VP, formerly Aetna Investment Advisers Fund - Seeks to maximize investment return consistent with reasonable safety of principal by investing in a combination of asset classes. Aetna Money Market VP, formerly Aetna Variable Encore Fund - Seeks a high current return, consistent with the preservation of capital and liquidity by investing in high-quality money market instruments. Portfolio Partners MFS Emerging Equities Portfolio - Seeks long-term capital appreciation by investing in companies with market capitalization. Fidelity VIP Equity-Income Portfolio - Seeks reasonable income by investing primarily in income-producing equity securities. Fidelity VIP Growth Portfolio - Seeks capital appreciation by investing primarily in common stock. Fidelity VIP Overseas Portfolio - Seeks long-term growth of capital primarily through investments in foreign securities. Portfolio Partners Scudder International Growth Portfolio - Seeks long-term growth of capital, primarily through diversified holdings of marketable foreign equity investments. Portfolio Partners MFS Research Growth Portfolio - Seeks capital growth over time by investing primarily in common stock considered by management to have better-than-average prospects for appreciation. (g) PARTICIPANTS LOANS Participants may borrow from their fund accounts. Loan transactions are treated as a transfer to (from) the investment funds. The loans are secured by the balance in the participant's account and bear interest at a rate commensurate with local prevailing rates as determined by the Plan Administrator. Loans are limited to the lesser of $50,000 or 50% of the participants vested account balance. Principal and interest are paid ratably through payroll deductions. 5 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (h) PAYMENTS OF BENEFITS Upon termination of service, a participant may elect to receive either a single sum payment in cash equal to the value of the vested interest in his or her account, or a series of substantially equal annual or more frequent installments over a period not to exceed the participant's life expectancy. (i) PLAN TERMINATION Although they have not expressed any intent to do so, the Plan Sponsor has the right under the Plan to discontinue contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts. (2) SIGNIFICANT ACCOUNTING POLICIES (a) BASIS OF ACCOUNTING The financial statements of the Plan have been prepared on the accrual basis of accounting. (b) INVESTMENTS Publicly traded securities are carried at fair value based on the published market quotations. The pooled separate account reflects amounts which have been deposited with Aetna Life Insurance and Annuity Company for which the carrying value of the investments are adjusted to market value based upon quoted prices determined by Aetna Life Insurance and Annuity Company at the end of each year, and the investment return is reflected in the ending balance of the investment. The guaranteed investment contract is valued at fair value adjusted for changes in investment value plus credited interest. Participant loans are valued at cost, which approximates fair value. Purchases and sales of investments are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date. (c) ADMINISTRATIVE EXPENSES All administrative costs of the Plan are paid by the Plan Sponsor. (d) USE OF ESTIMATES The Plan Administrator has made a number of estimates and assumptions relating to the reporting of assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Accordingly, actual results may differ from those estimates. (e) BENEFITS DUE TO TERMINATED PARTICIPANTS Fund balances for employees that have been terminated but have yet to be paid have been included in net assets available for plan benefits. They will be reflected in the statements of changes in net assets available for plan benefits when actually paid. At December 31, 1998 and 1997, the amount due to terminated employees is $211,364 and $21,520, respectively. 6 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (3) NET ASSETS AVAILABLE FOR PLAN BENEFITS The following presents net assets available for Plan benefits for each fund as of December 31, 1998: PARTICIPANT DIRECTED ------------------------------------------------------------------------------------------------------ PORTFOLIO PARTNERS FIDELITY AETNA MFS VIP FIDELITY AETNA GROWTH AETNA AETNA EMERGING EQUITY- VIP AETNA FIXED AND BALANCED MONEY EQUITIES INCOME GROWTH BOND VP ACCOUNT INCOME VP VP MARKET VP PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Assets Investments at fair value: Money Market fund $ -- -- -- -- -- -- -- -- Guaranteed investment contract -- 209,836 -- -- -- -- -- -- Pooled separate accounts 49,419 -- 264,217 176,910 64,280 269,277 190,224 365,402 Consumer Portfolio Services, Inc. common stock -- -- -- -- -- -- -- -- Participant loans -- -- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 49,419 209,836 264,217 176,910 64,280 269,277 190,224 365,402 Receivables: Employees' individual rollover 5,343 -- 10,151 235 -- -- -- 234 Employers' contributions -- -- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 5,343 -- 10,151 235 -- -- -- 234 Net assets available for Plan benefits $ 54,762 209,836 274,368 177,145 64,280 269,277 190,224 365,636 =========== =========== =========== =========== =========== =========== =========== =========== (Continued from Above) PARTICIPANT DIRECTED --------------------------------------------------------------- PORTFOLIO PARTNERS PORTFOLIO NON- SCUDDER PARTNERS PARTICIPANT FIDELITY INTER- MFS DIRECTED VIP NATIONAL RESEARCH ----------- OVERSEAS GROWTH GROWTH CPS PARTICIPANT CPS PORTFOLIO PORTFOLIO PORTFOLIO STOCK FUND LOANS STOCK FUND TOTAL ----------- ----------- ----------- ----------- ----------- ----------- ----------- Assets Investments at fair value: Money Market fund $ -- -- -- 7,136 -- 7,451 14,587 Guaranteed investment contract -- -- -- -- -- -- 209,836 Pooled separate accounts 62,949 90,279 72,075 -- -- -- 1,605,032 Consumer Portfolio Services, Inc. common stock -- -- -- 338,885 -- 219,487 558,372 Participant loans -- -- -- -- 91,537 -- 91,537 ----------- ----------- ----------- ----------- ----------- ----------- ----------- 62,949 90,279 72,075 346,021 91,537 226,938 2,479,364 Receivables: Employees' individual -- -- -- 235 -- -- 16,198 rollover Employers' contributions -- -- -- -- -- 4,303 4,303 ----------- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- 235 -- 4,303 20,501 Net assets available for Plan benefits $ 62,949 90,279 72,075 346,256 91,537 231,241 2,499,865 =========== =========== =========== =========== =========== =========== =========== 7 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 The following presents net assets available for Plan benefits for each fund as of December 31, 1997: PARTICIPANT DIRECTED ------------------------------------------------------------------------------------------------------ PORTFOLIO PARTNERS FIDELITY AETNA AETNA MFS VIP FIDELITY AETNA AETNA AETNA INVESTMENT VARIABLE EMERGING EQUITY - VIP INCOME FIXED VARIABLE ADVISERS ENCORE EQUITIES INCOME GROWTH SHARES ACCOUNT FUND FUND FUND PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Assets Investments at fair value: Money market fund $ -- -- -- -- -- -- -- -- Guaranteed investment contract -- 126,085 -- -- -- -- -- -- Pooled separate accounts 27,859 -- 159,039 113,050 39,311 157,453 88,216 157,318 Consumer Portfolio Services, Inc. common stock -- -- -- -- -- -- -- -- Participant loans -- -- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 27,859 126,085 159,039 113,050 39,311 157,453 88,216 157,318 Receivables - employees' individual rollover -- -- 1,696 -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net assets available for Plan benefits $ 27,859 126,085 160,735 113,050 39,311 157,453 88,216 157,318 =========== =========== =========== =========== =========== =========== =========== =========== (Continued from Above) PARTICIPANT DIRECTED --------------------------------------------------------------- PORTFOLIO PARTNERS PORTFOLIO NON- SCUDDE PARTNERS PARTICIPANT FIDELITY INTER- MFS DIRECTED VIP NATIONAL RESEARCH -------- OVERSEAS GROWTH GROWTH CPS PARTICIPANT CPS PORTFOLIO PORTFOLIO PORTFOLIO STOCK FUND LOANS STOCK FUND TOTAL ----------- ----------- ----------- ----------- ----------- ----------- ----------- Assets Investments at fair value: Money market fund $ -- -- -- 76,508 -- 71,464 147,972 Guaranteed investment contract -- -- -- -- -- -- 126,085 Pooled separate accounts 29,716 48,318 37,926 -- -- -- 858,206 Consumer Portfolio Services, Inc. common stock -- -- -- 159,726 -- 100,938 260,664 Participant loans -- -- -- -- 31,475 -- 31,475 ----------- ----------- ----------- ----------- ----------- ----------- ----------- 29,716 48,318 37,926 236,234 31,475 172,402 1,424,402 Receivables - employees' individual rollover -- -- -- 3,392 -- -- 5,088 ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net assets available for Plan benefits $ 29,716 48,318 37,926 239,626 31,475 172,402 1,429,490 =========== =========== =========== =========== =========== =========== =========== 8 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (4) CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS The following presents changes in net assets available for Plan benefits for each fund for the year ended December 31, 1998: PARTICIPANT DIRECTED ------------------------------------------------------------------------------------------------------ PORTFOLIO PARTNERS FIDELITY AETNA MFS VIP FIDELITY AETNA GROWTH AETNA AETNA EMERGING EQUITY- VIP AETNA FIXED AND BALANCED MONEY EQUITIES INCOME GROWTH BOND VP ACCOUNT INCOME VP VP MARKET VP PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Additions to net assets attributed to: Interest $ -- 8,731 -- -- -- -- -- -- Net appreciation (depreciation) in fair value of investments 2,604 -- 23,001 20,493 2,525 50,067 13,039 84,504 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,604 8,731 23,001 20,493 2,525 50,067 13,039 84,504 Contributions: Employer -- -- -- -- -- -- -- -- Employees 24,578 66,746 116,410 61,181 34,261 90,297 85,635 153,550 Employees' individual rollover 7,479 4,496 46,211 8,264 1,319 22,159 23,730 10,048 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total additions 34,661 79,973 185,622 89,938 38,105 162,523 122,404 248,102 Deductions from net assets attributed to - benefits paid to participants -- -- -- -- -- -- -- -- Interfund transfer (7,758) 3,778 (71,989) (25,843) (13,136) (50,699) (20,396) (39,784) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net increase 26,903 83,751 113,633 64,095 24,969 111,824 102,008 208,318 Net assets available for Plan benefits: Beginning of year 27,859 126,085 160,735 113,050 39,311 157,453 88,216 157,318 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- End of year $ 54,762 209,836 274,368 177,145 64,280 269,277 190,224 365,636 =========== =========== =========== =========== =========== =========== =========== =========== (Continued from Above) PARTICIPANT DIRECTED --------------------------------------------------------------- PORTFOLIO PARTNERS PORTFOLIO NON- SCUDDER PARTNERS PARTICIPANT FIDELITY INTER- MFS DIRECTED VIP NATIONAL RESEARCH ----------- OVERSEAS GROWTH GROWTH CPS PARTICIPANT CPS PORTFOLIO PORTFOLIO PORTFOLIO STOCK FUND LOANS STOCK FUND TOTAL ----------- ----------- ----------- ----------- ----------- ----------- ----------- Additions to net assets attributed to: Interest $ -- -- -- -- -- -- 8,731 Net appreciation (depreciation) in fair value of investments 3,404 9,025 9,709 (294,760) 5,064 (235,568) (306,893) ----------- ----------- ----------- ----------- ----------- ----------- ----------- 3,404 9,025 9,709 (294,760) 5,064 (235,568) (298,162) Contributions: Employer -- -- -- -- -- 296,183 296,183 Employees 43,036 45,929 39,111 283,763 -- -- 1,044,497 Employees' individual 1,506 1,169 272 17,186 -- -- 143,839 rollover ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total additions 47,946 56,123 49,092 6,189 5,064 60,615 1,186,357 Deductions from net assets attributed to - benefits paid to participants -- -- -- 106,508 5,411 4,063 115,982 Interfund transfer (14,713) (14,162) (14,943) 206,949 60,409 2,287 -- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net increase 33,233 41,961 34,149 106,630 60,062 58,839 1,070,375 Net assets available for Plan benefits: Beginning of year 29,716 48,318 37,926 239,626 31,475 172,402 1,429,490 ----------- ----------- ----------- ----------- ----------- ----------- ----------- End of year $ 62,949 90,279 72,075 346,256 91,537 231,241 2,499,865 =========== =========== =========== =========== =========== =========== =========== 9 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 The following presents changes in net assets available for Plan benefits for each fund for the year ended December 31, 1997: PARTICIPANT DIRECTED ------------------------------------------------------------------------------------------------------ PORTFOLIO PARTNERS FIDELITY AETNA AETNA MFS VIP FIDELITY AETNA AETNA AETNA INVESTMENT VARIABLE EMERGING EQUITY - VIP INCOME FIXED VARIABLE ADVISERS ENCORE EQUITIES INCOME GROWTH SHARES ACCOUNT FUND FUND FUND PORTFOLIO PORTFOLIO PORTFOLIO ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Additions to net assets attributed to: Interest $ -- 5,431 -- -- -- -- -- -- Net appreciation (depreciation) in fair value of investments 1,426 -- 29,189 17,012 1,445 16,995 14,882 22,035 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1,426 5,431 29,189 17,012 1,445 16,995 14,882 22,035 Contributions: Employer -- -- -- -- -- -- -- -- Employees 13,277 46,007 57,457 39,723 20,242 89,333 48,689 98,643 Employees' individual rollover 408 1,309 2,909 824 941 2,892 1,799 5,066 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total additions 15,111 52,747 89,555 57,559 22,628 109,220 65,370 125,744 Deductions from net assets attributed to - benefits paid to participants Interfund transfer (327) 2,162 (14,176) (9,938) (9,967) (85,584) (12,830) (42,124) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) 14,784 54,909 75,379 47,621 12,661 23,636 52,540 83,620 Net assets available for Plan benefits: Beginning of year 13,075 71,176 85,356 65,429 26,650 133,817 35,676 73,698 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- End of year $ 27,859 126,085 160,735 113,050 39,311 157,453 88,216 157,318 =========== =========== =========== =========== =========== =========== =========== =========== (Continued from Above) PARTICIPANT DIRECTED --------------------------------------------------------------- PORTFOLIO PARTNERS PORTFOLIO NON- SCUDDER PARTNERS PARTICIPANT FIDELITY INTER- MFS DIRECTED VIP NATIONAL RESEARCH ----------- OVERSEAS GROWTH GROWTH CPS PARTICIPANT CPS PORTFOLIO PORTFOLIO PORTFOLIO STOCK FUND LOANS STOCK FUND TOTAL ----------- ----------- ----------- ----------- ----------- ----------- ----------- Additions to net assets attributed to: Interest $ -- -- -- -- 1,610 -- 7,041 Net appreciation (depreciation) in fair value of investments 294 2,703 (2,505) (24,680) -- (1,900) 76,896 ----------- ----------- ----------- ----------- ----------- ----------- ----------- 294 2,703 (2,505) (24,680) 1,610 (1,900) 83,937 Contributions: Employer -- -- -- -- -- 111,070 111,070 Employees 21,503 33,584 25,538 118,910 -- -- 612,906 Employees' individual rollover -- 48 48 7,243 -- -- 23,487 ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total additions 21,797 36,335 23,081 101,473 1,610 109,170 831,400 Deductions from net assets attributed to - benefits paid to participants -- -- -- 143,688 4,276 6,557 154,521 Interfund transfer 489 (15,237) (24,982) 175,625 32,638 4,251 -- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) 22,286 21,098 (1,901) 133,410 29,972 106,864 676,879 Net assets available for Plan benefits: Beginning of year 7,430 27,220 39,827 106,216 1,503 65,538 752,611 ----------- ----------- ----------- ----------- ----------- ----------- ----------- End of year $ 29,716 48,318 37,926 239,626 31,475 172,402 1,429,490 =========== =========== =========== =========== =========== =========== =========== 10 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (5) INVESTMENTS In accordance with the terms of the Plan Document and determined by the Plan Administrator, the Plan offers 12 investment options. Plan participants select the options they prefer and allocate their contributions between options as they deem appropriate. Participant loans are included in the statements of net assets available for Plan benefits at cost, which approximates fair value of the notes. The notes are payable through payroll deductions in installments of principal plus interest at rates of 10.00% - 10.50%, with final payments due between May 1999 and December 2013, and are secured by the participants' vested account balances. The fair value of investments that represent 5% or more of the Plan's net assets consisted of: INVESTMENT 1998 1997 ------------------------------------------------ ------------ ------------ CPS Stock Fund $ 558,372 260,664 Schwab Advantage Money Market Fund 14,587 147,972 Aetna Growth and Income VP, formerly Aetna Variable Fund 264,217 159,039 Aetna Balanced VP, formerly Aetna Investment Advisers Fund 176,910 113,050 Aetna Fixed Account 209,836 126,085 Portfolio Partners MFS Emerging Equities Portfolio 269,277 157,453 Fidelity VIP Growth Portfolio 365,402 157,318 Fidelity VIP Equity-Income Portfolio 190,224 88,216 ------------ ------------ $ 2,048,825 1,209,797 ============ ============ (6) TAX STATUS The Internal Revenue Service has determined and informed the Plan Sponsor by a letter dated February 7, 1996, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended since receiving the determination letter. However, the Plan Administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. (7) RELATED PARTY TRANSACTIONS Certain Plan investments are units of a Variable Annuity Account managed by Aeltus Investment Management, Inc., an affiliate of Aetna Life Insurance and Annuity Company. Aetna Life Insurance and Annuity Company is defined as an insurance company by ERISA Section 403(b) and, therefore, these transactions qualify as party-in-interest. Fees for the investment management services are paid by the Plan Sponsor. In addition, the Plan held 144,096 and 27,082 shares of common stock of Consumer Portfolio Services, Inc. at December 31, 1998 and 1997, respectively. 11 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (8) NET (DEPRECIATION) APPRECIATION IN FAIR VALUE OF INVESTMENTS Included in net (depreciation) appreciation in fair value of investments is $530,328 depreciation relating to the non-participant and participant directed CPS Stock Funds. The plan held 144,096 and 27,082 shares of CPS common stock which had a market value of approximately $3.88 and $9.62 per share at December 31, 1998 and 1997, respectively. At June 4, 1999, CPS common stock had a market value of approximately $1.66 per share. (9) LIQUIDITY OF THE PLAN SPONSOR The Plan Sponsor's business requires substantial cash to support its operating activities. The Plan Sponsor's primary sources of cash from operating activities are amounts borrowed under its various warehouse lines, servicing fees on portfolios of contracts previously sold, proceeds from the sales of contracts, customer payments on contracts held for sale, interest earned on contracts held for sale and releases of cash from spread accounts. The Plan Sponsor's primary uses of cash are the purchases of contracts, repayment of amounts borrowed under its various warehouse lines, operating expenses such as employee, interest and occupancy expenses, the establishment of and further contributions to spread accounts and income taxes. As a result, the Plan Sponsor is dependent on its warehouse lines of credit and its residual financing facility in order to finance its continued operations. If the Plan Sponsor's principal lenders decided to terminate or not to renew any of these credit facilities with the Plan Sponsor, the loss of borrowing capacity would have a material adverse effect on the Plan Sponsor's results of operations unless the Plan Sponsor found a suitable alternative source. Subsequent to December 31, 1998, one of the Plan Sponsor's principal lenders has terminated its credit facility with the Plan Sponsor. The servicing agreements call for the requisite levels of the various spread accounts to increase if the related receivables experience delinquencies, repossessions or net losses in excess of certain predetermined levels. At December 31, 1998, 18 of the Plan Sponsor's 22 securitized pools were at higher than original requisite levels due to the delinquency, repossession or net loss performance of 13 of the 22 securitized pools. Such spread account balances therefore included approximately $24.3 million more than would have been required at the original requisite levels. The higher requisite spread account levels ranged from 30% to 100% of the related outstanding balance of the securitized pools. In April 1999, the Plan Sponsor entered into an amendment with the certificate insurer of the Plan Sponsor's asset-backed securities to cap the amount of cash retained in the spread accounts at 21% of the outstanding securities balance for 19 of the Plan Sponsor's 22 securitized pools. The effectiveness of the amendment is contingent upon approval of certain subordinated certificateholders. This new cap on the spread accounts described above is expected to provide cash flows to the Plan Sponsor during 1999. The amendment is subject to certain performance measures that may result in an increase in the cap from 21% to 25%. There can be no assurance that such cash flows will occur. In addition to requiring higher spread account levels, the servicing agreements provide the certificate insurer with certain other rights and remedies, which have been waived on a monthly basis by the certificate insurer. On April 15, 1999, the Plan Sponsor issued $5.0 million of subordinated promissory notes to Levine Leichtman Capital Partners, Inc. and received proceeds (net of $250,000 of capitalized issuance costs) of approximately $4.75 million. The debt includes certain covenants one of which is the infusion of $15.0 million of debt during 1999 by Stanwich Financial Services Corp. (SFSC). SFSC's commitment in turn has been collateralized by certain assets pledged by the chairman of the Plan Sponsor's board of directors and the president of the Plan Sponsor. Additionally, the $5.0 million has been personally guaranteed by the chairman of the Plan Sponsor's board of directors and the president of the Plan Sponsor. The Plan Sponsor did not sell any contracts in the first quarter of 1999. During the second quarter of 1999 the Plan Sponsor sold $234 million of the Plan Sponsor's contracts in a whole loan sale. 12 (Continued)

CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 In the event the Plan Sponsor incurs a net loss in two consecutive quarters it would be in default of its agreements for the residual line. Unless waived by the lender, the default could result in acceleration of the residual line and a cross default on the warehouse lines. The lender would receive any releases from spread accounts to retire outstanding principal and interest. The Plan Sponsor believes that the lender would waive the default. In the event the lender does not waive the default, the Plan Sponsor believes that cash flows from operations would be sufficient to fund its obligations as they become due and payable. There can be no assurance, however, that the lender would waive the default or that other cash flows will be sufficient to fund the Plan Sponsor's operations. (10) SUBSEQUENT EVENT On April 1, 1999 the net assets available for plan benefits were transferred from the Trustee and the Insurance Company to Prudential Securities, Incorporated (the New Trustee) who will hold, administer and distribute the funds of the Plan in accordance with the text of the Plan and the instructions of the Plan Administrator or its designees. 13

SCHEDULE 1 CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Item 27a - Schedule of Assets Held for Investment Purposes December 31, 1998 DESCRIPTION OF INVESTMENT INCLUDING IDENTITY OF ISSUER BORROWER, MATURITY DATE, RATE OF INTEREST, LESSOR OR SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE COST CURRENT VALUE ----------------------------------------- ----------------------------------------- -------------- -------------- * Consumer Portfolio Services, Inc. 144,096 shares common stock $ 1,115,845 558,372 * Charles Schwab Institutional Schwab Advantage Money Market Fund, 14,587 units 14,587 14,587 * Aetna Life Insurance and Annuity Company Aetna Growth and Income VP, 11,678 units 264,217 264,217 * Aetna Life Insurance and Annuity Company Aetna Money Market VP, 5,046 units 64,280 64,280 * Aetna Life Insurance and Annuity Company Aetna Bond VP, 3,799 units 49,419 49,419 * Aetna Life Insurance and Annuity Company Aetna Balanced VP, 9,019 units 176,910 176,910 * Aetna Life Insurance and Annuity Company Aetna Fixed Account, 15,990 units 209,836 209,836 * Aetna Life Insurance and Annuity Company Portfolio Partners Scudder International Growth Portfolio, 5,980 units 90,279 90,279 * Aetna Life Insurance and Annuity Company Portfolio Partners MFS Research Growth Portfolio, 5,360 units 72,075 72,075 * Aetna Life Insurance and Annuity Company Portfolio Partners MFS Emerging Equities Portfolio, 13,453 units 269,277 269,277 * Aetna Life Insurance and Annuity Company Fidelity VIP Overseas Portfolio, 4,413 units 62,949 62,949 * Aetna Life Insurance and Annuity Company Fidelity VIP Equity-Income Portfolio, 8,480 units 190,224 190,224 * Aetna Life Insurance and Annuity Company Fidelity VIP Growth Portfolio, 13,862 units 365,402 365,402 * Participant loans Participant loans; interest rate between 10.00% and 10.50%; maturing between May 1999 and December 2013 91,537 91,537 -------------- -------------- $ 3,036,837 2,479,364 ============== ============== * Denotes a party-in-interest. See accompanying independent auditors' report. 14

SCHEDULE 2 CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN Item 27d - Schedule of Reportable Transactions Year ended December 31, 1998 SELLING/ IDENTITY OF PARTY DESCRIPTION PURCHASE REDEMPTION INVOLVED NET GAIN PRICE PRICE LEASE RENTAL ------------------------------------------- ---------------------------------------- ------------ ------------ ------------ * Consumer Portfolio Services, Inc. CPS Stock Fund series of 27 purchases $ 835,708 -- -- * Schwab Advantage Money Market Fund Money market fund series of 53 purchases 810,760 -- -- * Schwab Advantage Money Market Fund Money market fund series of 44 sales -- 955,406 -- * Aetna Life Insurance and Annuity Company Aetna Growth and Income VP series of 63 purchases 157,323 -- -- * Aetna Life Insurance and Annuity Company Aetna Growth and Income VP series of 18 sales -- 75,146 -- * Aetna Life Insurance and Annuity Company Aetna Balanced VP series of 63 purchases 77,672 -- -- * Aetna Life Insurance and Annuity Company Aetna Balanced VP series of 16 sales -- 34,305 -- * Aetna Life Insurance and Annuity Company Aetna Fixed Account series of 59 purchases 91,662 -- -- * Aetna Life Insurance and Annuity Company Aetna Fixed Account series of 15 sales -- 16,642 -- * Aetna Life Insurance and Annuity Company Portfolio Partners MFS Emerging Equities Portfolio series of 59 purchases 115,997 -- -- * Aetna Life Insurance and Annuity Company Portfolio Partners MFS Emerging Equities Portfolio series of 15 sales -- 50,791 -- * Aetna Life Insurance and Annuity Company Fidelity VIP Equity-Income Portfolio series of 62 purchases 110,729 -- -- * Aetna Life Insurance and Annuity Company Fidelity VIP Equity-Income Portfolio series of 16 sales -- 21,351 -- * Aetna Life Insurance and Annuity Company Fidelity VIP Growth Portfolio series of 62 purchases 167,710 -- -- * Aetna Life Insurance and Annuity Company Fidelity VIP Growth Portfolio series of 15 sales -- 40,630 -- ============ ============ ============ (Continued from Above) CURRENT VALUE EXPENSE OF ASSET ON IDENTITY OF PARTY INCURRED WITH TRANSACTION INVOLVED TRANSACTION COST OF ASSET DATE NET GAIN(LOSS) ------------------------------------------- ------------ ------------ ------------ ------------ * Consumer Portfolio Services, Inc. 4,753 -- 835,708 -- * Schwab Advantage Money Market Fund -- -- 810,760 -- * Schwab Advantage Money Market Fund -- 955,406 -- -- * Aetna Life Insurance and Annuity Company -- -- 157,323 -- * Aetna Life Insurance and Annuity Company -- 75,146 -- -- * Aetna Life Insurance and Annuity Company -- -- 77,672 -- * Aetna Life Insurance and Annuity Company -- 34,305 -- -- * Aetna Life Insurance and Annuity Company -- -- 91,662 -- * Aetna Life Insurance and Annuity Company -- 16,642 -- -- * Aetna Life Insurance and Annuity Company -- -- 115,997 -- * Aetna Life Insurance and Annuity Company -- 50,791 -- -- * Aetna Life Insurance and Annuity Company -- -- 110,729 -- * Aetna Life Insurance and Annuity Company -- 21,351 -- -- * Aetna Life Insurance and Annuity Company -- -- 167,710 -- * Aetna Life Insurance and Annuity Company -- 40,630 -- -- ============ ============ ============ ============ * Denotes a party-in-interest. See accompanying independent auditors' report. 15


                                  EXHIBIT 23.1


                          Independent Auditors' Consent

The Administrative Committee
Consumer Portfolio Services, Inc. 401(k) Plan

We consent to the incorporation by reference in the Registration Statement on
Form S-8 (file no. 333-58199) of Consumer Portfolio Services, Inc. of our report
dated June 4, 1999, relating to the statements of net assets available for plan
benefits and the statements of changes in net assets available for plan benefits
of the Consumer Portfolio Services, Inc. 401(k) Plan as of and for the years
ended December 31, 1998 and 1997 and all related schedules, which report appears
in the December 31, 1998 annual report on Form 11-K of the Consumer Portfolio
Services, Inc. 401(k) Plan.

/s/  KPMG LLP

Orange County, California
June 30, 1999