The Consumer Financial Protection Bureau (CFPB) has proposed a set of rules prohibiting arbitration clauses that prevent consumer class action lawsuits, evoking strong reactions from both sides of the debate.

The CFPB's own study, published in 2015, tends to show that arbitration actually benefits consumers more than class actions. Ballard Spahr’s Alan Kaplinsky, who pioneered the use of such arbitration clauses, said he expects a drawn-out battle that will last well beyond the comment period for the CFPB’s proposed rules.

"The only people who are going to benefit from the rule are the plaintiff's class action lawyers," Kaplinsky, leader of Ballard Spahr’s Consumer Financial Services Group, recently told Legal News Line. "It's a huge benefit for them, and it's unfortunate that the CFPB seems to be allowing that to get in the way of doing what the right thing is here. And the right thing is not to ban class action waivers, which is tantamount to banning arbitration altogether."