PM me if interested in joining potential class action suit v. Neteller

[phish]

They are going to ask for pie-in-the sky in their complaint. But eventually, if the class action is certified, nogotiations will begin and the end result will be something like: lawyers get $4M, plaintiffs get 5 cents on the dollars. This works great for both negotiating parties. They both make out like bandits. It's the supposed plaintiffs that get screwed.

If you have a little in Neteller, don't worry about it. The lawsuit will go on without your participation, and in the end you will be part of the settlement. Just don't expect anything out of it.

If you have a substantial sum, your best option is to opt out cause you are almost certainly going to get screwed otherwise.

[JPT III]

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You're kidding, right? I would proffer that the moment a party entrusted with another's money refuses to return such money to its rightful owner -- after demand for the return of the money has been made, the custodian of the money has "run off with the money." Moreover, some might argue that here, Neteller's admission that its retention of US customers' money remains indefinite, further emboldens this point.

[/ QUOTE ]

Playing devil's advocate here....

If this is what your main argument will be then I think this will fail. Neteller has not denied money to anyone. They continue to say the money is safe. They also tell you to go ahead and request checks of EFT. Then the status goes to pending and they say it will take a while. But, in no way did they ever say someone was not going to get their money. Now, if there is some law the forces them to return money by a certain date and they do not comply then I think it can be considered a "run off with the money" situation.

[/ QUOTE ]

I appreciate your devil's advocate position, but I disagree. I agree with you that they have not stated an intention to keep the money forever, but that does not absolve Neteller of liability for its current refusal to turn over the money.

Neteller's assurance that "the money is safe" does not suffice. They HAVE denied withdrawal of the money. Stating that they INTEND to comply, at some INDETERMINATE future time, with an obligation that is CURRENTLY OWED, is no defense.

Should they return it in the future, then we can talk about precisely what the measure of damages is. That is not the case right now, and by Neteller's own admission, will not be for quite some time. At the very least, assuming they turned over the money today, US customers should be entitled to the interest on the money held by Neteller after those funds were requested to be withdrawn. Also, see my earlier post about the Neteller up-front fees charged for services that it failed to provide.

[dlk9s]

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Also, see my earlier post about the Neteller up-front fees charged for services that it failed to provide.

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I have never been charged a fee by Neteller.

[JPT III]

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Also, see my earlier post about the Neteller up-front fees charged for services that it failed to provide.

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I have never been charged a fee by Neteller.

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Most have.

[Dotti]

Not being from the USA I don't know how this would work but as there are a lot of lawyers on this thread would be intersting to hear any views and other opinions.

Imagine player A deposits 500 into a site from neteller then later withdraws back into neteller 2500 from the site. Therefore there is a taxable gain of $2000?

If a class action lawsuit only returns a certain % is the player still also liable to pay tax on the full $2000? So could end up costing them more money than they have in Neteller in the first place.

What sort of percentage of players do you think have fully paid tax on their winning transactions in neteller? Are the non tax payers going to be in for a big shock once all the EFT and other banking records the DOJ have been after have been reviewed?

[flafishy]

[ QUOTE ]
Not being from the USA I don't know how this would work but as there are a lot of lawyers on this thread would be intersting to hear any views and other opinions.

Imagine player A deposits 500 into a site from neteller then later withdraws back into neteller 2500 from the site. Therefore there is a taxable gain of $2000?

If a class action lawsuit only returns a certain % is the player still also liable to pay tax on the full $2000? So could end up costing them more money than they have in Neteller in the first place.

What sort of percentage of players do you think have fully paid tax on their winning transactions in neteller? Are the non tax payers going to be in for a big shock once all the EFT and other banking records the DOJ have been after have been reviewed?

[/ QUOTE ]

I've been wondering this myself ... what kinds of tax audits are going to be triggered by this mess? It's likely to get a lot messier for a lot of us before it's over.

[skoal2k4]

taken from the TOS we all agree to when opening a neteller account

[ QUOTE ]

14. Limiting Access or Terminating your Account

14.1 At our discretion, we may suspend or limit access to your Account (including without limitation, placing a hold on funds in your Account, limiting your ability to send or redeem, transfer or withdraw electronic money from your Account, limiting your payment sources) or terminate your Account, at any time and for any reason, including but not limited to the following:

(a) breach of any of these Terms of Use;
(b) if we have reasonable grounds to believe that your Account has been used in connection with unauthorized or unusual credit card or bank account use, including without limitation, notice of same by your bank or credit card issuer;
(c) abuse by you of the reversal or charge back process provided by your bank or credit card company;
(d) receipt in your Account of potentially fraudulent funds;
(e) refusal to cooperate in an investigation or to provide adequate confirmation of identity or other identity or security information when requested;
(f) initiation of transactions that may be considered to be cash advances or assisting in cash advances;
(g) we believe your Account has been used or allegedly used in or to facilitate fraudulent or illegal activity;
(h) return of a payment for insufficient funds in the bank account;
(i) we believe that your Account, whether active or dormant, or your conduct, poses a security, credit, fraud or business risk to us; and
(j) to comply with money laundering or terrorist financing investigations conducted by government authorities, agencies or commissions.


[/ QUOTE ]

you lose your class action lawsuit

[JPT III]

[ QUOTE ]
Not being from the USA I don't know how this would work but as there are a lot of lawyers on this thread would be intersting to hear any views and other opinions.

Imagine player A deposits 500 into a site from neteller then later withdraws back into neteller 2500 from the site. Therefore there is a taxable gain of $2000?

If a class action lawsuit only returns a certain % is the player still also liable to pay tax on the full $2000? So could end up costing them more money than they have in Neteller in the first place.

What sort of percentage of players do you think have fully paid tax on their winning transactions in neteller? Are the non tax payers going to be in for a big shock once all the EFT and other banking records the DOJ have been after have been reviewed?

[/ QUOTE ]

Dotti, I suggest consulting a tax lawyer. I would be very suprised, however, if the $2000 was considered taxable income if never received by the player. My GUESS would be that the taxable gain, in such a scenario, would equal the amount recovered less the initial deposit.

This is not legal advice, and you should consult a tax lawyer if you are in need of tax advice.

[JPT III]

[ QUOTE ]
taken from the TOS we all agree to when opening a neteller account

[ QUOTE ]

14. Limiting Access or Terminating your Account

14.1 At our discretion, we may suspend or limit access to your Account (including without limitation, placing a hold on funds in your Account, limiting your ability to send or redeem, transfer or withdraw electronic money from your Account, limiting your payment sources) or terminate your Account, at any time and for any reason, including but not limited to the following:

(a) breach of any of these Terms of Use;
(b) if we have reasonable grounds to believe that your Account has been used in connection with unauthorized or unusual credit card or bank account use, including without limitation, notice of same by your bank or credit card issuer;
(c) abuse by you of the reversal or charge back process provided by your bank or credit card company;
(d) receipt in your Account of potentially fraudulent funds;
(e) refusal to cooperate in an investigation or to provide adequate confirmation of identity or other identity or security information when requested;
(f) initiation of transactions that may be considered to be cash advances or assisting in cash advances;
(g) we believe your Account has been used or allegedly used in or to facilitate fraudulent or illegal activity;
(h) return of a payment for insufficient funds in the bank account;
(i) we believe that your Account, whether active or dormant, or your conduct, poses a security, credit, fraud or business risk to us; and
(j) to comply with money laundering or terrorist financing investigations conducted by government authorities, agencies or commissions.


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you lose your class action lawsuit

[/ QUOTE ]

If you believe that a provision in the agreement that permits Neteller to indefinitely place on hold hundreds of millions of dollars, at its sole discretion, for any reason it chooses, is enforceable, I guess we disagree.

[johns1124]

Don't listen to these wanna-be atty's unless they are willing to disclose their BAR ID. Yes you can sue NT in US Courts. All NT has to then do is simply nothing. They won' be able to do business here in the US. But hell they are not anyway. You would have a better chance sueing the DOJ for hendering the transference of $$ into the US. If that honestly the REAL Hold-up. But all they have to do is then claim they are doing accordance to the Anti-Gambling legislation and the $$ is officially illegal under that law (which is is). And they would have a good argument to get the case thrown out, or the whole law revisited alltogether. If you were to do this route I would choose the more liberal area of the US to attempt suit on the DOJ ; Bay Area,NY etc.. The deep south is somewhere I would not want to file this type of law suit.