Item 3. Legal Proceedings
Item 3. Legal Proceedings
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. For the most part, we have legal and factual defenses
to consumer claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances of each case.
In General. There can
be no assurance as to the outcomes of the matters described above. We record at each measurement date our best estimate of probable incurred
losses for legal contingencies, if any. The amount of losses that may ultimately be incurred cannot be estimated with certainty. However,
based on such information as is available to us, the Company is not currently a party to any such material legal proceedings.
Accordingly, we believe that
the ultimate resolution of legal proceedings 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 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.
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Item 4. Mine Safety Disclosures
Not applicable.
Information about Our Executive Officers
Set forth below are the names, ages, offices held, tenure, and certain
biographical information of each of our executive officers as of the filing of this report:
Charles E. Bradley, Jr .,
66, has been our Chief Executive Officer since January 1992, a director since our formation in March 1991, and was elected Chairman of
the Board of Directors in July 2001. Prior to that he was our President from March 1991 to December 2022. From April 1989 to November
1990, he served as Chief Operating Officer of Barnard and Company, a private investment firm. From September 1987 to March 1989, Mr. Bradley,
Jr. was an associate of The Harding Group, a private investment banking firm. Mr. Bradley does not currently serve on the board of
directors of any other publicly-traded companies.
Michael T. Lavin,
53, has been President since December 2022, Chief Operating Officer since February 2019, and our Chief Legal Officer since March
2014. Prior to that, he was our Executive Vice President since March 2014, Senior Vice President – General Counsel since
March 2013, Senior Vice President and Corporate Counsel since May 2009 and our Vice President- Legal since joining the Company in
November of 2001. Mr. Lavin was previously engaged as an associate at a large law firm and a spin off start up law firm.
Danny Bharwani , 58,
has been Chief Financial Officer since September 2022 and Executive Vice President – Finance since December 2022. Previously, he
was our Senior Vice President – Finance from April 2016 to December 2022 and Vice President – Finance from June 2002 to April
2016. He joined us as Assistant Controller in August 1997. Mr. Bharwani was previously employed as Assistant Controller at The Todd-AO
Corporation, from 1989 to 1997.
Robert Riedl, 62, rejoined the Company as
the Senior Executive Vice President, Chief Risk Officer in August 2025. From 2021 to July 2025, he was Chief Investment Officer at Lobel
Financial Corporation, a family-owned auto finance company. Since 2017 he has been a partner at a Greendoor Partners, a boutique investment
and advisory firm. He initially joined CPS in 2003 through 2015 and held a number of different senior positions within the Company including
Chief Operating Officer, Chief Investment Officer, Chief Financial Officer and Senior Vice President of Risk Management. Previously, from
2000 to 2002, Mr. Riedl was a Principal at Northwest Capital Appreciation, a private equity firm. For a year prior to joining Northwest
Capital, Mr. Riedl served as Senior Vice President for one of its portfolio companies, SLP Capital. Mr. Riedl was an investment banker
for ContiFinancial Services, Jefferies & Company and PaineWebber from 1986 to 1999.
Teri L. Robinson, 63,
has been Executive Vice President of Sales and Originations since December 2022. Prior to that she was Senior Vice President of Sales
and Originations from June 2020 to December 2022 and Senior Vice President of Originations from April 2007 to June 2020. Prior to that,
she held the position of Vice President of Originations since August 1998. She joined the Company in June 1991 as an Operations Specialist,
and held a series of successively more responsible positions. Previously, Ms. Robinson held an administrative position at Greco &
Associates.
Christopher Terry,
58, has been Executive Vice President of Risk Management, Systems, and IT since December 2022. Prior to that he was our Senior Vice President
of Risk Management, Systems, and IT from October 2018 to December 2022, and Senior Vice President of Risk Management from May 2017 to
October 2018. Prior to that, he was our Senior Vice President of Servicing from May 2005 to August 2013. He was Senior Vice President
of Asset Recovery from August 2013 to May 2017 and from January 2003 to May 2005. He joined us in January 1995 as a loan officer, held
a series of successively more responsible positions, and was promoted to Vice President - Asset Recovery in June 1999. Mr. Terry
was previously a branch manager with Norwest Financial from 1990 to October 1994.
Michele Baumeister ,
59, has been Senior Vice President of Originations since June 2023. Prior to that she was the Vice President of Originations from March
2017 to June 2023. She started with the Company in March 1997 as a Loan Processor and held a series of more senior positions within the
Originations Department. Ms. Baumeister was previously a personal banker with Western Financial.
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Charles Gonel , 45,
has been Senior Vice President of Servicing since June 2023. Prior to that he was the Vice President of Collections from March 2015 to
June 2023. He joined the Company in March 2008 as a Collections Analyst and transferred into the Risk Management Department in 2010
where he held a sequence of increasingly more responsible positions. Prior to joining CPS, he was a Quality Assurance Analyst with AT&T
Wireless.
Noel Jackson, 54, has
been the Senior Vice President of Asset Recovery since May 2025. Prior to that, she was the Vice President of Asset Recovery from December
2021 to May 2025, the Vice President of Collections from April 2019 to December 2021 and the Vice President of Asset Recovery from April
2017 to April 2019. Ms. Jackson was previously an Executive Director at a non-profit organization.
Catrina Ralston , 50,
has been Senior Vice President of Human Resources since December 2022. Prior to that, she was Vice President - Human Resources since March
2016. She joined the Company in 1997 as an Operations Clerk and transferred into the Human Resources Department in 2001 where she held
a series of successively more responsible positions. Prior to joining CPS, Ms. Ralston worked as a customer service representative for
the City of Virginia Beach Parks & Recreation Department.
Lisette Reynoso , 38,
has been Senior Vice President and General Counsel since June 2023. Prior to that she was the Vice President of Legal from January 2020
to June 2023, the Assistant Vice President of Legal/Corporate Counsel from December 2018 to January 2020, and Corporate Counsel from December
2015 to December 2018. Ms. Reynoso is a California barred attorney.
Susan Ryan , 54, has
been Senior Vice President of Servicing since June 2023. Prior to that she was the Vice President of Collections from March 2015 to June
2023. She started with the Company in 2003 as a Deficiency Supervisor where she took on more responsibility over time. Prior to joining
CPS, she was a Deficiency Supervisor with The Finance Company.
Steve Schween , 63,
has been Senior Vice President of Systems since December 2022. Previously, he was Vice President of Systems from February 2014. He joined
in the Company in 2000 as a Systems Analyst and took on more responsibility over time. Mr. Schween was previously a Systems Analyst with
Jeunique International.
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PART II