The official NETELLER thread. (First 40 days.) #1 of 2.

[Mike Haven]

andywend,

I don't claim to be any more knowledgeable about Neteller than anyone else, but I do have faith in them in terms of their returning money to all their members, in due early course. (I accept this is based mainly on their being authorised by the FSA, and knowing personally through what hoops one has to jump to become authorised.)

Unless they have been running a fraud on an absolutely massive scale, with the knowledge and assistance of many employees, accountants, banks, etc, they have all money belonging to their members, fully intact. Why they can't or won't release this, immediately, is a matter for speculation, at this moment.

The longer they hold onto US members' money, without releasing a full explanation, the more damage to their credibility occurs, and their other members throughout the world get more nervous and move their money out. A slippery slope of which they are obviously fully aware. If they hold onto US members' funds for more than six weeks, I doubt if they will ever recover to be the big name they were. On the other hand, if there is some strange but reasonable logistical problem that they have, owing to what has suddenly happened, and they solve this and start moving money very soon, the opposite may happen, and confidence in their business ethics should be completely restored, (as far as the rest of the world is concerned).

Whatever happens over the next few weeks will be a major learning experience for just about every company, and, indeed, every individual, in the world.

[Mercman572]

Mike

well, since you started the thread I figured I might as well ask, what is your best guess at an expected timeframe for Neteller to return money to US players.

My estimation is 1-1.5 years, I was just curious to see what others think (I tend to be somewhat cynical).

[Little_Luck]

If Neteller plans on staying in business long term, then I would think they are actively trying to come up with a plan to get our money back to us soon.

Yes, they make interest on our money. However, I would guess they are in short-term liquid investments that make, at best, maybe 5%. That's a daily rate of 0.01%. Not a significant enough amount to a company that was/is valued at hundreds of millions of dollars.

The upper management, actively running Neteller, probably doesn't own a huge percentage of the company. In general, people with these circumstances are not going to try and run the company into the ground, if they can help it. They want to be able to keep their jobs and know the longer they delay in paying us out, the more damage it costs the company long-term (well more than 0.01% per day).

I have already heard cases of non-US people being apprehensive about using Neteller now, and I am certain Neteller realizes this, too. IF Neteller were smart though, they would offer to pay interest to US-locked accounts at the T-bill rate or equivalent. This would cost the company very little and do a tremendous amount for PR long-term.

Another scenario I have come up with though...
They are attempting to keep the illusion of paying US accounts until they can get their stock trading again, so they can dump any shares they may have. Then, let the company burn.

[grando]

from info I've heard they are waiting to pay US customers until they are advised by their legal counsel which route of action they are taking

[rcd]

that's my guess too.

[gone.flying]

[ QUOTE ]
If Neteller plans on staying in business long term, then I would think they are actively trying to come up with a plan to get our money back to us soon.

Yes, they make interest on our money. However, I would guess they are in short-term liquid investments that make, at best, maybe 5%. That's a daily rate of 0.01%. Not a significant enough amount to a company that was/is valued at hundreds of millions of dollars.

The upper management, actively running Neteller, probably doesn't own a huge percentage of the company. In general, people with these circumstances are not going to try and run the company into the ground, if they can help it. They want to be able to keep their jobs and know the longer they delay in paying us out, the more damage it costs the company long-term (well more than 0.01% per day).

I have already heard cases of non-US people being apprehensive about using Neteller now, and I am certain Neteller realizes this, too. IF Neteller were smart though, they would offer to pay interest to US-locked accounts at the T-bill rate or equivalent. This would cost the company very little and do a tremendous amount for PR long-term.

Another scenario I have come up with though...
They are attempting to keep the illusion of paying US accounts until they can get their stock trading again, so they can dump any shares they may have. Then, let the company burn.

[/ QUOTE ]

VERY possible - I've been through one of these (albeit on a much much smaller scale - Nasdaq small cap) and unfortunately not a zillion miles removed from some of those canadian & NY people 'associated' with NT

The market makers and merchant banks will be calling most of the shots at the moment

[anuj]

[ QUOTE ]
http://www.associatedcontent.com/art..._neteller.html

In the USA Today, FBI agent Neil Donovan told the USA Today that "funds from Neteller are being held in court as potential evidence. Some customers may get their money back."



[/ QUOTE ]

Some people may get their money back? That is not comforting at all.

[Bob T.]

[ QUOTE ]
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http://www.associatedcontent.com/art..._neteller.html

In the USA Today, FBI agent Neil Donovan told the USA Today that "funds from Neteller are being held in court as potential evidence. Some customers may get their money back."




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Some people may get their money back? That is not comforting at all.

[/ QUOTE ]

I think that the FBI's purpose might be served by making non-comforting statements.

[Mike Haven]

Mercman572,

Let's add the obligatory poll.

[RikaKazak]

[ QUOTE ]


My estimation is 1-1.5 years, I was just curious to see what others think (I tend to be somewhat cynical).

[/ QUOTE ]

My guess is 6-12 MORE weeks. And I'm saying there's a 80% chance U.S. players get their money back.