================================================================================

                       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, 2006


                                       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 schedule prepared in accordance with the
financial reporting requirements of the Employee Retirement Income Security Act
of 1974, together with the report of independent registered public accounting
firm thereon, are filed herewith.


II. Exhibits:

         Consent of Independent Registered Public Accounting Firm is filed
herewith as Exhibit 23.1.



                                   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:  July 9, 2007                  By: /s/ Jeffrey P. Fritz
                                         ---------------------------------------
                                         Jeffrey P. Fritz
                                         Member, Administrative Committee









                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN

                 Financial Statements and Supplemental Schedule

                           December 31, 2006 and 2005

     (With Report of Independent Registered Public Accounting Firm Thereon)























                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN



             INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE




                                                                            PAGE

Report of Independent Registered Public Accounting Firm                        2

Statements of Net Assets Available for Benefits - December 31, 2006
and 2005                                                                       3

Statements of Changes in Net Assets Available for Benefits - Years
ended December 31, 2006 and 2005                                               4

Notes to Financial Statements                                                  5

Schedule H, Line 4i - Schedule of Assets (Held at End of Year) -
December 31, 2006                                                             11





All schedules omitted are not applicable or are not required based on disclosure
requirements of the Employee Retirement Income Security Act of 1974 and
regulations issued by the Department of Labor.


                                      -1-



             Report of Independent Registered Public Accounting Firm




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


We have audited the accompanying statements of net assets available for benefits
of the Consumer Portfolio Services, Inc. 401(k) Plan (the "Plan") as of December
31, 2006 and 2005, and the related statements of changes in net assets available
for 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 the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Plan is not required to have,
nor were we engaged to perform an audit of its internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Plan's internal control over financial reporting.
Accordingly, we express no such opinion. 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 benefits of the Plan as of
December 31, 2006 and 2005, and the changes in net assets available for benefits
for the years then ended in conformity with U.S. generally accepted accounting
principles.

As discussed in Note (2) to the financial statements, the Plan adopted Financial
Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1,
REPORTING OF FULLY BENEFIT-RESPONSIVE INVESTMENT CONTRACTS HELD BY CERTAIN
INVESTMENT COMPANIES SUBJECT TO THE AICPA INVESTMENT COMPANY GUIDE AND
DEFINED-CONTRIBUTION HEALTH AND WELFARE AND PENSION PLANS in 2006. Therefore,
the presentation of the 2006 and 2005 financial statement amounts include the
presentation of fair value with an adjustment to contract value for such
investments.

Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule, schedule H,
line 4i - schedule of assets (held at end of year) is presented for the purpose
of additional analysis and is not a required part of the basic financial
statements but is 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 schedule is the
responsibility of the Plan's management. The supplemental schedule has been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.



                                              /s/  HASKELL & WHITE LLP

July 6, 2007

Irvine, California

                                      -2-




                                 CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                                Statements of Net Assets Available for Benefits
                                          December 31, 2006 and 2005




                                                                              2006              2005
                                                                           -----------      -----------
                                                                                      
Investments, at fair value:
     Interest bearing cash                                                 $   119,460      $    69,024
     Guaranteed interest account                                             2,036,223        2,109,113
     Pooled separate accounts                                                9,401,793        8,154,970
     Consumer Portfolio Services, Inc. common stock                          2,692,224        2,138,791
     Participant loans                                                         501,309          472,126
                                                                           -----------      -----------
                 Net assets available for plan benefits at fair value       14,751,009       12,944,024

                 Adjustments from fair value to contract value for
                    fully benefit-responsive investment                         83,010          158,433

                                                                           -----------      -----------
                 Net assets available for benefits                         $14,834,019      $13,102,457
                                                                           ===========      ===========


See accompanying notes to financial statements

                                                     -3-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
           Statements of Changes in Net Assets Available for Benefits
                     Years ended December 31, 2006 and 2005



                                                            2006               2005
                                                        ------------       ------------
Additions (reduction) to net assets attributed to:
     Interest                                           $    103,147       $    245,367
     Net appreciation in fair value of investments         1,198,820            780,860
                                                        ------------       ------------
                                                           1,301,967          1,026,227
     Investment expenses                                     (99,422)           (92,127)
                                                        ------------       ------------
                 Net investment increase                   1,202,545            934,100
     Contributions:
        Employees                                          1,305,276          1,153,048
        Employer                                             516,576            427,378
        Employees' individual rollover                        14,545             46,168
                                                        ------------       ------------
                 Total additions                           3,038,942          2,560,694
Deductions from net assets attributed to:
     Benefits paid to participants                         1,307,380          1,352,930
                                                        ------------       ------------
                 Net increase                              1,731,562          1,207,764
Net assets available for benefits:
     Beginning of year                                    13,102,457         11,894,693
                                                        ------------       ------------
     End of year                                        $ 14,834,019       $ 13,102,457
                                                        ============       ============




See accompanying notes to financial statements

                                      -4-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                          Notes to Financial Statements
                           December 31, 2006 and 2005



(1)    DESCRIPTION OF THE PLAN

       The following description of the Consumer Portfolio Services, Inc. (the
       Plan Sponsor or CPS) 401(k) Plan (The Plan) provides only general
       information. Participants should refer to the Plan agreement for a more
       complete description of the Plan's provisions.

       (a)    GENERAL

              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. Effective
              January 1, 2003 the Plan Sponsor adopted the Mass Mutual Life
              Insurance Company Flexinvest(R) Prototype Non-Standardized 401(k)
              Profit Sharing Plan.

              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 Plan is operated under an agreement which requires that Mass
              Mutual Retirement Savings (Mass Mutual), custodian and
              recordkeeper, holds and distributes 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

              Employees are eligible to participate in the Plan after completing
              90 days of service. In accordance with the Plan, participants may
              contribute up to 50% of their annual compensation. Contributions
              are subject to certain limitations as defined in the Plan as well
              as a maximum of $15,000 and $14,000 for the years ended December
              31, 2006 and 2005, respectively, under the Internal Revenue Code
              of 1986. Participants may roll over into the Plan amounts
              representing distributions from other qualified plans.

              The Plan Sponsor may make a discretionary matching contribution
              equal to a discretionary percentage of the participant's pretax
              contributions. Discretionary matching contributions were $516,576
              and $427,378 for the years ended December 31, 2006 and 2005,
              respectively.

       (d)    PARTICIPANT ACCOUNTS

              Each participant's account is credited with the participant's
              contributions, allocations of the Plan Sponsor's matching
              contributions and investment earnings and charged with an

                                      -5-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                    Notes to Financial Statements (Continued)
                           December 31, 2006 and 2005


(1)    DESCRIPTION OF THE PLAN (CONTINUED)


              allocation of expenses and investment losses. Allocations are
              based on participant earnings or account balances, as defined.

       (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. Participants
              are also fully vested at death, retirement, and upon termination
              for disability.

       (f)    INVESTMENT OPTIONS

              The Plan offers various investment options which are managed by
              several outside investment managers. Upon enrollment in the Plan,
              participants may direct their contributions in any of the
              investment options offered at the time. Participants may change
              their investment options daily. Participants should refer to the
              Plan fund description pamphlet for a complete description of the
              investment options and for the detailed composition of each
              investment fund.

       (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, reduced by the highest
              outstanding loan balance during the preceding 12 months, or 50% of
              the participant's vested account balance. A loan shall be repaid
              within five years, unless it is used for the purchase of a primary
              residence. Principal and interest are paid ratably through payroll
              deductions.

              Participant loans are included in the statements of net assets
              available for plan benefits at their outstanding balances, which
              approximate fair value of the notes. The notes are payable through
              payroll deductions in installments of principal plus interest at
              rates between 5.00% and 9.75%, with final payments due between
              January 2007 and June 2018, and are secured by the participants'
              vested account balances.

       (h)    PAYMENTS OF BENEFITS

              Upon termination of service, a participant may elect to receive
              either a single lump 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. Benefits
              are recorded when paid.

                                      -6-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                    Notes to Financial Statements (Continued)
                           December 31, 2006 and 2005


(1)    DESCRIPTION OF THE PLAN (CONTINUED)


       (i)    FORFEITED ACCOUNTS

              Through December 31, 2002 forfeitures were applied to reduce any
              employer contribution. Effective January 1, 2003, forfeitures
              attributable to matching contributions will be applied first to
              reduce expenses related to the administration of the Plan and then
              to reduce any employer contributions. As of December 31, 2006 and
              2005, forfeited accounts totaled $427,507 and $332,718
              respectively.

       (j)    PLAN TERMINATION

              Although it has 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. Shares of pooled separate accounts
              are valued at the net fair value of the underlying assets at
              year-end. Participant loans are valued at their outstanding
              balances, which approximates fair value. Purchases and sales of
              investments are recorded on a trade-date basis. Dividends are
              recorded on the ex-dividend date. Interest income is recorded on
              the accrual basis.

              Realized gains and losses on investments are based on the market
              value of the asset at the beginning of the year or at the time of
              purchase for assets purchased during the year and the related fair
              value on the day the investments are sold during the year.

              As described in Financial Accounting Standards Board Staff
              Position, FSP AAG INV-1 and SOP 94-4-1, "Reporting of Fully
              Benefit-Responsive Investment Contracts Held by Certain Investment
              Companies Subject to the AICPA Investment Company Guide and
              Defined-Contribution Health and Welfare and Pension Plans (the
              "FSP")," investment contracts held by a defined-contribution plan
              are required to be reported at fair value. However, contract value
              is the relevant measurement attribute for that portion of the net
              assets available for benefits of a defined-contribution plan
              attributable to fully benefit-responsive investment contracts
              because contract value is the amount participants would receive if
              they were to initiate permitted transaction under the terms of the
              Plan. As required by the FSP, the Statement of Net Assets
              Available for Benefits presents the fair value of the investment
              contracts as well as the adjustment of the fully
              benefit-responsive investment contracts from a fair value to
              contract value. The Statement of Changes in Net Assets Available


                                      -7-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                    Notes to Financial Statements (Continued)
                           December 31, 2006 and 2005


(2)    SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

              for Benefits is prepared on a contract value basis. This FSP was
              adopted by the Plan for the year ended December 31, 2006 and
              applied retrospectively, as required by the FSP.

       (c)    ADMINISTRATIVE EXPENSES

              The Plan and the plan sponsor share in plan expenses. Certain
              direct investment expenses, such as loan, withdrawal or
              distribution processing fees are deducted from participants'
              accounts.

       (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 accounting
              principles generally accepted in the United States of America.
              Accordingly, actual results may differ from those estimates.

       (e)    RISKS AND UNCERTAINTIES

              The Plan provides for various investment options in money market
              funds, pooled separate accounts, guaranteed interest accounts and
              the common stock of Consumer Portfolio Services, Inc. Investment
              securities are exposed to various risks such as interest rate,
              market, and credit risks. Due to the level of uncertainty related
              to changes in value of investment securities, it is at least
              reasonably possible that changes in the various risk factors could
              materially affect participants' account balances and the amounts
              reported in the financial statements.

       (f)    CONCENTRATION

              Investments in the common stock of Consumer Portfolio Services,
              Inc. comprise approximately 19% and 17% of the Plan's investments
              as of December 31, 2006 and 2005, respectively.

       (g)    RECLASSIFICATIONS

              Certain balances in the 2005 financial statements have been
              reclassified to conform to the current year presentation. This
              reclassification had no effect on the change in net assets.

                                      -8-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                    Notes to Financial Statements (Continued)
                           December 31, 2006 and 2005

(3)    INVESTMENTS

       The following presents the fair value of investments that represent 5% or
       more of the Plan's net assets:


                                                                                   2006                  2005
                                                                            -------------------   -------------------
Investment:
                                                                                            
     MM Guaranteed Interest Account                                         $     2,119,233       $     2,267,546
     MM Indexed Equity                                                            1,548,207             1,319,466
     Main Street (Oppenheimer)                                                    1,154,611               985,765
     MM Aggressive Growth (Sands Cap)                                               799,217               891,038
     SIA - AK                                                                       789,913                    --
     MM Moderate Journey                                                            751,040               655,876
     CPS Common Stock                                                             2,811,684             2,207,815
     Other investments individually less than 5%                                  4,860,114             4,774,951
                                                                            -------------------   -------------------
                                                                            $    14,834,019       $    13,102,457
                                                                            ===================   ===================


       During 2006 and 2005, the Plan's investments (including gains and losses
       on investments bought and sold, as well as held during the year)
       appreciated in value by investment type, as follows:

                                                                                   2006                  2005
                                                                            -------------------   -------------------
Investment appreciation:
     Mutual funds                                                           $     1,043,697               477,843
     Common stocks                                                                  155,123               303,017
                                                                            -------------------   -------------------
                                                                            $     1,198,820               780,860
                                                                            ===================   ===================


(4)    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) and is, therefore, exempt from Federal income taxes. 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.
       Accordingly, no provision for income taxes is included in the
       accompanying financial statements.


                                      -9-


                  CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                    Notes to Financial Statements (Continued)
                           December 31, 2006 and 2005


(5)    RELATED-PARTY TRANSACTION

       Certain Plan investments are managed by MassMutual Retirements Services.
       MassMutual Retirement Services is the custodian of these assets and
       provides record keeping services to the Plan and, therefore, these
       transactions qualify as party-in-interest transactions.


(6)    RECONCILIATION BETWEEN FINANCIAL STATEMENTS AND FORM 5500

       The following is a reconciliation of the Plan's investment in guaranteed
       interest account per the financial statements and the Form 5500:



                                                                    2006            2005
                                                                 ----------      ----------
                                                                           
Investment in guaranteed interest account
per the financial statements                                     $2,036,223      $2,109,113

Adjustment from fair value to contract value
for fully benefit-responsive investment contracts                    83,010         158,433
                                                                 ----------      ----------
Investment in guaranteed interest account per the Form 5500      $2,119,233      $2,267,546
                                                                 ==========      ==========

                                      -10-


                                           CONSUMER PORTFOLIO SERVICES, INC. 401(k) PLAN
                                  Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
                                                         December 31, 2006
                                                    Plan #001 - EIN# 32-0021607

                   (b)
                   ---
           Identity of issuer,                               (c)
           -------------------                               ---
           borrower, lessor or    Description of investment including maturity date, rate          (d)              (e)
           -------------------    -------------------------------------------------------          ---              ---
(a)           similar party            of interest, collateral, par or maturity value             Cost         Current value
- ---           -------------            ----------------------------------------------             ----         -------------

 *          MassMutual              Guaranteed Interest Account                                 2,119,233         2,036,223
 *          MassMutual              Holding Account - SIA-AG                                            0                39
 *          MassMutual              SIA-A1                                                        362,410           439,429
 *          MassMutual              SIA-AD                                                        640,748           799,217
 *          MassMutual              SIA-AK                                                        542,518           789,913
 *          MassMutual              SIA-AL                                                        338,817           391,304
 *          MassMutual              SIA-AN                                                        106,972           128,065
 *          MassMutual              SIA-AX                                                      1,102,121         1,548,207
 *          MassMutual              SIA-DA                                                        321,481           377,504
 *          MassMutual              SIA-DC                                                        174,244           207,933
 *          MassMutual              SIA-DE                                                         71,225            78,519
 *          MassMutual              SIA-DM                                                        619,336           751,050
 *          MassMutual              SIA-LB                                                        390,705           498,229
 *          MassMutual              SIA-NM                                                         85,456            97,883
 *          MassMutual              SIA-NS                                                         31,480            32,209
 *          MassMutual              SIA-05                                                        845,608         1,154,611
 *          MassMutual              SIA-09                                                        129,636           150,879
 *          MassMutual              SIA-OD                                                        354,355           505,993
 *          MassMutual              SIA-WR                                                        507,238           733,080
 *          MassMutual              SIA-WT                                                        142,210           175,334
 *          MassMutual              SIA-WY                                                         75,089            82,938
 *          MassMutual              SIA-WZ                                                        297,967           322,973
 *          MassMutual              SIA-Y                                                         132,378           136,484
            Consumer Portfolio
            Services, Inc.          Consumer Portfolio Services, Inc. Common Stock              1,863,138         2,811,684
            Participant Loans       5.00% - 9.75%                                                       0           501,309



- ----------- ----------------------- ---------------------------------------------------------------------- -----------------
*  Denotes Party-in-Interest


                                                               -11-