Arbitration provisions have become a point of contention between financial services firms, who use them to avoid costly class action litigation, and consumer advocates, who say that mandatory arbitration clauses gives them fewer dispute resolution options. "Federal and state courts throughout the country are sharply divided with respect to the validity of class action waivers," says Alan S. Kaplinsky, chair of Ballard Spahr's nationally recognized Consumer Financial Services practice, which pioneered the use of arbitration clauses and represents many of the nation's largest banks and credit card issuers. The U.S. Supreme Court's May 24 decision to weigh the use of class arbitration in a telecom dispute promises to shed more light on the issue. The debate continues on Capitol Hill as well, where financial reform legislation could establish a new federal consumer watchdog with the power to restrict or ban mandatory arbitration in consumer financial contracts.