A U.S. Treasury report released yesterday is heavily critical of the Consumer Finance Protection Bureau’s new rule banning companies from using mandatory arbitration clauses saying -among many other things- it  would “effect a large transfer of wealth to plaintiff’s attorneys.”

The report said the rule would benefit too few consumers, too many attorneys and that mandatory disclosures would serve consumers better.

“In view of these defects, it is clear that the Rule does not satisfy the statutory prerequisites for banning the use of arbitration agreements under the Dodd-Frank Act,” the report read. “The Bureau has not made a reasoned showing that increased consumer class action litigation will result in a net benefit to consumers or to the public as a whole. Based on the Bureau’s own data, it is far more likely that the Rule will generate massive economic costs—borne by businesses and consumers alike—that dwarf the speculative benefits of the Bureau’s theorized increase in compliance.”

The U.S. House of Representatives voted to repeal the rule this summer. The Senate is considering a similar bill. The bill is also being challenged in federal court by multiple financial institutions and chambers of commerce.

The Treasury report can be seen here.