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#1
02-13-2007, 07:51 PM
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The legality of what Neteller is doing
Is it legal for Neteller to just freeze all U.S. customers funds as they have?
No court and no government has ordered them (yet) to do so, they have simply done so voluntarily in an attempt to co-operate. Neteller of course is not a bank, however they are licensced and regulated by various financial groups and such. If Bank of America or Wachovia one day just said, "Hey we know it's your money, but we're not gonna give it to you, no eta on when you'll get it" there would be serious hell to pay I would imagine. They probably have some leeway for liquidity issues, but they would still have to provide reasonable access. What happens if Neteller still has US funds frozen 2 months from now? How about 3 months? 6 months? A year? etc. They have to be in violation of some sort of regulation or statute at some point. Has anyone familiar with UK banking/finance laws researched this? 
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#3
02-13-2007, 09:14 PM
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Re: The legality of what Neteller is doing
As long as it's the DOj asking them to freeze the funds, there's no one to enforce any US law that says they shouldn't. In addition, with them being outside the US you're going to have little to no luck dealing with them in US court.
In other words, the "legality" of their actions is at DOJ whim.
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#4
02-13-2007, 09:19 PM
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Re: The legality of what Neteller is doing
[ QUOTE ]
As long as it's the DOj asking them to freeze the funds, there's no one to enforce any US law that says they shouldn't. In addition, with them being outside the US you're going to have little to no luck dealing with them in US court. In other words, the "legality" of their actions is at DOJ whim. [/ QUOTE ] Um. . . , sue them in the Isle of Man???
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#5
02-13-2007, 09:24 PM
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Re: The legality of what Neteller is doing
You get right on that...
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#6
02-13-2007, 09:59 PM
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Re: The legality of what Neteller is doing
[ QUOTE ]
As long as it's the DOj asking them to freeze the funds, there's no one to enforce any US law that says they shouldn't. In addition, with them being outside the US you're going to have little to no luck dealing with them in US court. In other words, the "legality" of their actions is at DOJ whim. [/ QUOTE ] Do you have a source with a definitive claim that the DOJ has frozen all Neteller funds belonging to US customers and not just the money locked "in transit?"
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#7
02-13-2007, 10:05 PM
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Re: The legality of what Neteller is doing
[ QUOTE ]
[ QUOTE ] As long as it's the DOj asking them to freeze the funds, there's no one to enforce any US law that says they shouldn't. In addition, with them being outside the US you're going to have little to no luck dealing with them in US court. In other words, the "legality" of their actions is at DOJ whim. [/ QUOTE ] Do you have a source with a definitive claim that the DOJ has frozen all Neteller funds belonging to US customers and not just the money locked "in transit?" [/ QUOTE ] I don't recall saying anything of the sort. But the fact is that if you ask them for money, you will get none. Who froze what is irrelivant from a practical POV.
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#8
02-13-2007, 10:06 PM
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Re: The legality of what Neteller is doing
[ QUOTE ]
Is it legal for Neteller to just freeze all U.S. customers funds as they have? [/ QUOTE ] If it is true that the only funds frozen were those in transit, and that the rest of funds in US customer's accounts are held securely (as they claim, "we're keeping your money safe!") then there must be some recourse with the UK banking regulators. There's a few "If's" in there.... And unfortunately their public statement was limited in detail. Another poster called the UK FSA --- but I don't remember enough of the post, maybe a search will uncover it. --- Another poster jokes about suing them in Isle of Man, but from the legal thread here several days ago, it seems clear to me that suing them in the USA is entirely appropriate since they have substantial business involvement here.
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#9
02-13-2007, 10:09 PM
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Re: The legality of what Neteller is doing
[ QUOTE ]
Who froze what is irrelivant from a practical POV. [/ QUOTE ] If all message board discussions had to be relevant from a practical POV, what would we chat about? Some of us are apparently more interested in the "ingredients" of this debacle than you are. It is interesting to me whether they are obeying a DOJ order, "victims" of ACH freeze-out, or are using US-customer money as a bargaining chip to spare their ownership from further personal prosecution.
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#10
02-13-2007, 10:10 PM
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Re: The legality of what Neteller is doing
[ QUOTE ]
Another poster jokes about suing them in Isle of Man, but from the legal thread here several days ago, it seems clear to me that suing them in the USA is entirely appropriate since they have substantial business involvement here. [/ QUOTE ] That isn't a joke. It is unlikely that you could reach Neteller assets outside of the US with a judgment from a US court. Excession (of Pokertracker article fame and a solicitor in the UK) recently posted that he did not believe that a US judgment would be recognized in the UK or the IOM. The solution: sue in the IOM.
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