Neteller alleges I owe them $3k+ WTF?!

[BlackAMEX]

For those of you that have any interest in this issue, here was my response:

To whom this may concern,

I respectfully believe you are mistaken in this error, as there is no possible way a negative balance on my account could have occurred as I have never used a credit card etc to fund my account. My records will show this. In fact I dont even know how negative balances come about!

The only reason I can think for this negative balance on my account is because this Neteller account was hacked about 4 months ago (or close to this, I dont have the exact date on me but I can get it if required) and used as part of a laundering ring, according to your Neteller investigations themselves. After Neteller stated they had solved the problem I allowed them to close the account. I havent made another one in my name as yet.

Please see the below email from Sike of Neteller Investigations as evidence of this fact:

- Note the fact that Neteller confirmed I had NO INVOLVEMENT in this activity, and

- Note the 2nd last paragraph that states that chargeback's are being excepted to the account and so I was advised to close the account. I advised Neteller to do so. If it was not closed, it is a fault on your part, not mine. You can check transaction records for this account as proof (even though it shouldnt be open!).



RE: Possible hacking-related issue [192051:109171]‏
From: Investigations (investigations@neteller.com)


Sent: Thursday, 14 June 2007 7:59:26 AM

To: xxxxxxx (xxxxxxxxx@hotmail.com)


Dear Mr. xxxxxx,

NETELLER was able to indicate fraud activity within your account. Unfortunately the transactions had occurred before we were able to close the account. Based on the information available, NETELLER has confirmed that you had no involvement in the recent transactions or logins.

The Terms of Use accepted at the time of sign up outline that NETELLER cannot take responsibility for such losses, however we have chosen to reinstate the account to it's previous balance as a gesture of good will. Please advise when last time your used your account is.

The access of your account details is more than likely due to the level of security of your password. If it was stolen from one location and the hacker made the assumption that was the same for your email account, access would be easily made. Locating your NETELLER login details within your email account and making that same assumption the password was the same for all online accounts, the hacker was then able to access your account with our company.

NETELLER advises that you update your online passwords ensuring they are different from one another. Storing your login details in a different area will also better the security of your information.

It is believed the card used to initiate the funds was stolen and therefore we are excepting chargeback's to the account. This will pose issues in the future if you were to continue using the account. Therefore we advise to register a new account with our site. This enables a new Account ID number, Secure ID number and password. Please advise (email or phone) when the new account is registered. Your certification status, banking details and balance can be moved to the new account.

Thank you for your patience and understanding. Please do not hesitate to contact an agent with any other questions or concerns.

Best Regards
____________________________________________
Sike
Investigations Officer (456)
investigations@NETeller.com
Toll Free: 888.258.5859
Local: 403.233.9466
Fax: 403.277.7996
www.NETeller.com

I also dealt with another Investigations representative, Brittany (brittany@NETeller.com), regarding this issue, who should be able to confirm this if needed.

I am very upset that I am being accused of owing such a negative balance, as the allegation is completely false. I trust that you will sort out this problem VERY promptly to ensure that things are resolved before you hand this alleged 'debt' over to collectors. Again, I am bitterly disappointed in this accusation, as Ive been a very loyal and cooperative customer to your company.

That said, I am happy to provide any further information should you require it ASAP.

Thankyou,

xxxx xxxxxxxx

[Tachyon]

Good reply. I'm guessing it was an automated email that you originally received anyway... Let us know the outcome.

[slowhand5]

I've worked in the legal and just a general tip for everyone, never pay a charge that you think if fraudulent just because the company threatens to hire a so-called "collection-agency" on you. Neteller has very little legal power in the United States and our consumer protection laws are such that you have very little to worry about.

If a collection agency does try to harass you, tell them you are making a note of their calls and will be talking to your lawyer. Chances are you'll never get a call again. Also 3k is such a small sum that neteller would never even consider trying to take you to court.

[daryn]

sike!!

[ClevelandWasp]

I've worked many years at a law firm that did debt collection and $3k is definitely not too small to send to collection. However, I don't think they could ever take you to court because any business that they did with you would have been illegal, right? This would be like suing a guy because he breached a drug-dealing agreement.

[Josem]

[ QUOTE ]
I've worked many years at a law firm that did debt collection and $3k is definitely not too small to send to collection. However, I don't think they could ever take you to court because any business that they did with you would have been illegal, right? This would be like suing a guy because he breached a drug-dealing agreement.

[/ QUOTE ]

it is probably difficult to prove that transferring money to neteller was illegal.

if you are going to go to court and base your defense on a claim that you behaved illegally, you are likely to prosecuted for whatever you claim to have done illegally.



also, OP would have been better if it had included more prominent mention that HE WAS HACKED MONTHS AGO AND NETELLER ADMITTED A CHUNK OF MONEY WAS STOLEN. This is a likely cause of a negative balance.

[kypreanus]

[ QUOTE ]
Just tell them all the money you have was earned from playing poker so it would be illegal to give them any.

[/ QUOTE ]

Not a dime.

[BlackAMEX]

[ QUOTE ]
[ QUOTE ]
I've worked many years at a law firm that did debt collection and $3k is definitely not too small to send to collection. However, I don't think they could ever take you to court because any business that they did with you would have been illegal, right? This would be like suing a guy because he breached a drug-dealing agreement.

[/ QUOTE ]

it is probably difficult to prove that transferring money to neteller was illegal.

if you are going to go to court and base your defense on a claim that you behaved illegally, you are likely to prosecuted for whatever you claim to have done illegally.



also, OP would have been better if it had included more prominent mention that HE WAS HACKED MONTHS AGO AND NETELLER ADMITTED A CHUNK OF MONEY WAS STOLEN. This is a likely cause of a negative balance.

[/ QUOTE ]

Firstly, I do believe I made a solid enough mention of the hacking issue, although granted I could have probably mentioned it in a bit more detail and with more emphasis added. I will probably do this on the reply to Neteller's followup should the issue not be resolved by then.

Secondly, I am Australia, and my Neteller account has me listed as being Australian. Therefore, none of my activites with Neteller could be illegal ( to my knowledge anyways, I think this is only US customers, yes?). So I dont think I have any leg to stand on here.

But Im gonna be clear: I will NOT be paying this money. No chance in hell. And I will definitely be making a big deal about it if the issue gets to that stage, as this is total bs by them!

[bouglas]

[ QUOTE ]
I havent made another one in my name as I am currently using one held by my father at the moment.

[/ QUOTE ]

I would be careful about passing this kind of information onto NT.