Complaining to British regulators about Neteller

[Homer]

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I do hope that you can understand our lack of sympathy and please, please, stop whining and VOTE!

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I can't

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You can't stop whining and vote? Well then I hope Neteller keeps your money and puts it to the legal defense of John LeFevre and Steve Lawrence.

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Do you think everyone voted for the current administration? This is out of our hands. Hoping Neteller steals money from people makes you a sad little man.

[sg23]

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Do you think everyone voted for the current administration? This is out of our hands. Hoping Neteller steals money from people makes you a sad little man.

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Q
F
T

[Sniper]

Bobman, FSA has a website... fwiw... the 1st step in the "complaint" process is to send a letter to Neteller...
(I am not sure how effective following thru on this process will be, at this time)

Your funds are still "secure"... Neteller just has no way to get you funds, since "apparently" no US Bank will deal with them or any of their "current" 3rd party processors...

Stay tuned in the Neteller Update thread.

[Milagro]

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I do hope that you can understand our lack of sympathy and please, please, stop whining and VOTE!

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I can't

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You can't stop whining and vote? Well then I hope Neteller keeps your money and puts it to the legal defense of John LeFevre and Steve Lawrence.

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Do you think everyone voted for the current administration? This is out of our hands. Hoping Neteller steals money from people makes you a sad little man.

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I don't really hope that Neteller keeps your money. But if you "can't" understand why the rest of the world (including the British regulators) may not be sympathetic to your plight than you are narrow-minded selfish "sad little man".

[Richas]

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I don't really hope that Neteller keeps your money. But if you "can't" understand why the rest of the world (including the British regulators) may not be sympathetic to your plight than you are narrow-minded selfish "sad little man".

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I think the FSA will be very concerned about any consumer losing out here. There has been no UK offence, UK citizens have accounts with them. The only way Neteller would not pay out is if the company goes under and the money is not in trust as they claimed, there would be big questions about where the money went for what is essentially a banking service.

The FSA role is partly to protect the consumer and partly to give UK and foreign consumers and companies the confidence to deal with UK Financial services and institutions. If Neteller were to not pay out that would threaten the whole of the AIM market, a lot of what the City of London does and be the end of a credible FSA itself. UK customers would be as angry as anyone - besides it is still a sound business meeting a need for those of us outside the US.

The FSA will look at complaints but only after the companies complaint procedure is completed. You should ask if this is the end of their complaint process as once they confirm this you can go to the FSA.

[JPFisher55]

IMO Neteller keeps most (90%) of their clients' accounts in CD's and bonds with short to medium maturities like banks do with depositors money.
By leaving the US market, Neteller has created a "bank" run on their deposit accounts. It will take 2-4 months for the CD's and bonds to mature so that Neteller can refund their US accounts.
However, they have ruined their reputation and will never regain their dominant status in the industry when the DOJ war on online gambling falls to WTO and court litigation. Maybe they should have stuck with the US market and suffered the consequences which would not have been as bad for their business as the present situation.

[Milagro]

Good post. No doubt you are right about this. I am frustrated (as many are) with this whole situation and a bit angry that this anti-freedom crowd in the United States is able to reach across the Atlantic and affect my life and what I choose to do or not to do within the laws of my own country.

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The only way Neteller would not pay out is if the company goes under and the money is not in trust as they claimed, there would be big questions about where the money went for what is essentially a banking service.

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I was hoping to stick with Neteller but this is beginning to look too much like a panic to me. So I suppose I should just have my bankroll wire transferred out to my bank account here in Switzerland in case Neteller does go bust. I guess all non-U.S. 2+2ers should do the same just in case. [img]/images/graemlins/frown.gif[/img]

[ADBjester]

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IMO Neteller keeps most (90%) of their clients' accounts in CD's and bonds with short to medium maturities like banks do with depositors money.

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Um.... most banks' assets are *not* held in CD's (which would by necessity be held by other banks). Most assets of a bank are in very long term notes: mortgages, business loans, etc. A smaller amount is in short-to-mid term receivables (credit cards balances owed by cardholders).

For the typical bank, far less than 100% is held in liquid or near liquid assets.... *far* less. (Think teens).

Jester

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I don't really hope that Neteller keeps your money. But if you "can't" understand why the rest of the world (including the British regulators) may not be sympathetic to your plight than you are narrow-minded selfish "sad little man".

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I just want to be clear on your argument. If you don't like a government's policy, you think it is justified to take action, even if that action may affect the government's citizens. If the citizens complain, you are not sympathetic. And you do not see the irony.

k thanks

[Richas]

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By leaving the US market, Neteller has created a "bank" run on their deposit accounts. It will take 2-4 months for the CD's and bonds to mature so that Neteller can refund their US accounts.

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It does look like a scene from Wonderful Life. Though Neteller is based in the Isle of Man it is Aim listed and FSA regulated so I would expect the normal arrangements for a bank run in the UK to kick in. The last one we had was a bit different in that Nick Leeson had genuinely bankrupted Barings (later sold for £1) but what normally would happen is that the Bank of England would act asa lender of last resort. In practice the Bank of England gets all the big banks (and these days probably a couple of big hedge funds) in and thrashes out a deal where a bank subject to a run is given access to enough cash (on credit) to pay out. The City of London and the other big banks have access to huge amounts of cash (liquidity) I would be surprised if over the weekend Neteller is not sorted out with the cash to payout. If it isn't then frankly the City of London are not doing their job.

I doubt I could pay out a prop bet to anyone in the US right now but the 20% of my roll on Neteller (the rest is spread between sites) will be staying there for now. If I don't get it back I will be complaining to the FSA and will be happy to champion US customers cause too (including with my sister in law who works for the FSA).