On January 23, the CFPB filed a brief in the U.S. Supreme Court opposing a lender’s petition for a writ of certiorari, which challenged a 9th Circuit decision that upheld a $134 million restitution award. As previously covered by InfoBytes, the lender, in its petition, argued that it was entitled to a jury trial under the Seventh Amendment and that its waiver of that right was invalid because circuit precedent at the time foreclosed a jury trial for the relief sought.

In response, the CFPB argued that the lender had knowingly and voluntarily waived its Seventh Amendment right to a jury trial by joining a status report agreeing to a bench trial after being found liable for collecting unlawful interest and fees on loans deemed invalid under state law. The brief contended that the waiver was valid regardless of any mistaken understanding by the lender about the nature of the relief sought, noting that the lender never attempted to withdraw its waiver or request a jury trial even after the issue was clarified. The CFPB further asserted that the lender’s arguments regarding circuit precedent and the characterization of restitution did not warrant review by the U.S. Supreme Court, as the lower court’s decision rested solely on the express waiver of the right to a jury trial.