Complaining to British regulators about Neteller

[JPFisher55]

But is Neteller a bank that can take advantage of this system?

[davmcg]

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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.

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Look I really wish ppl wld stop posting this drivel. Neteller PLC is located in the Isle of Man and is not regulated by the FSA. Neteller PLC has a subsidiary, Nateller UK, that is authorised as an electronic money operator, NOT a bank, to carry out business in the UK and passported into various othe EU countries.

In any case the FSA does not deal with complaints from consumers, it sets out a complaints procedure that authorised firms should follow. After dealing with a complaint an authorised firm should give the complainant the right to refer the complaint to the Financial Ombudsman where the FO has jurisdiction. US customers of Neteller PLC do not fall under FO jurisdiction.

[Sniper]

Richas...

Interesting(?) thought in the "run on the bank" scenario... what if?... the problem is with Neteller's Bank not being able to liquidate the funds that Neteller needs and transfer the funds to Neteller?

This could have a serious effect on that Banks liquidity and reverberate throughout the entire UK banking system and markets...

Do we know what financial institution they may be using?... whatever that bank is, should be publically disclosing this problem...

ps... discussion of UK big brother made it to the parliament floor... this seems a bit bigger issue. How is this news playing in the UK?

[Richas]

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This could have a serious effect on that Banks liquidity and reverberate throughout the entire UK banking system and markets...

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Neteller is a real minnow in terms of City of London the big banks, hedge funds and the Bank of England. There really should be no problem with sorting them a line of credit for every single deposit especially if the FSA that took over the Bank of England's regulatory role gets the Bank of England to agree to being the lender of last resort (it's job!!!!) essentially it would be a risk free loan for the big banks/hedge funds. The cash is there it's just difficult for Neteller to convert their investments to pay out immediately. All banks know about runs and they have agreements in place to cooperate. OK the Neteller call staff will not know about what is going on in the background but if the City does not keep Neteller afloat it destroys the credibility of the City (which turns over a Neteeller about every hour).

[davmcg]

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This could have a serious effect on that Banks liquidity and reverberate throughout the entire UK banking system and markets...

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Neteller is a real minnow in terms of City of London the big banks, hedge funds and the Bank of England. There really should be no problem with sorting them a line of credit for every single deposit especially if the FSA that took over the Bank of England's regulatory role gets the Bank of England to agree to being the lender of last resort (it's job!!!!) essentially it would be a risk free loan for the big banks/hedge funds. The cash is there it's just difficult for Neteller to convert their investments to pay out immediately. All banks know about runs and they have agreements in place to cooperate. OK the Neteller call staff will not know about what is going on in the background but if the City does not keep Neteller afloat it destroys the credibility of the City (which turns over a Neteeller about every hour).

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FFS you are confused about so many issues. Listing on a UK stock exchange is utterly irrelevant to any issues of consumer protection.

Neteller UK is not a bank it is an electronic money issuer

http://www.fsa.gov.uk/register/firmP....do?sid=102712

The rules governing an electronic money issuer are

http://fsahandbook.info/FSA/html/handbook/ELM


The rules particular to a bank are

http://fsahandbook.info/FSA/html/handbook/BIPRU

In any case the funds are in US$ so could not possibly affect UK capital markets.

As posted above only Neteller UK is regulated.

[Sniper]

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This could have a serious effect on that Banks liquidity and reverberate throughout the entire UK banking system and markets...

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Neteller is a real minnow in terms of City of London the big banks, hedge funds and the Bank of England. There really should be no problem with sorting them a line of credit for every single deposit especially if the FSA that took over the Bank of England's regulatory role gets the Bank of England to agree to being the lender of last resort (it's job!!!!) essentially it would be a risk free loan for the big banks/hedge funds. The cash is there it's just difficult for Neteller to convert their investments to pay out immediately. All banks know about runs and they have agreements in place to cooperate. OK the Neteller call staff will not know about what is going on in the background but if the City does not keep Neteller afloat it destroys the credibility of the City (which turns over a Neteeller about every hour).

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However, this situation may be complicated by the unknown/undecided(?) UK Gov't reaction to this whole thing...

Remember these same banks may be facing DOJ subpenas... and may not have coordinated an appropriate response.

If the DOJ decided to go after any bank that assisted Neteller, and effectively remove them from doing business in the US, this issue just reached a whole new scale!

[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.

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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 cannot understand why citizens of other countries would not be sympathetic to injustices that are out of our control. What is it that you want me to do exactly? I am one person in a country of hundreds of millions. I see injustices in the world all the time, and don't automatically think to blame the citizens of those countries.

[Milagro]

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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

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You are right. My bad. I hope you get your money back and some of your freedoms as well. Hopefully I will see you all back at the tables sooner than later.

[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.

[/ QUOTE ]

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.

[/ QUOTE ]
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".

[/ QUOTE ]

I cannot understand why citizens of other countries would not be sympathetic to injustices that are out of our control. What is it that you want me to do exactly? I am one person in a country of hundreds of millions. I see injustices in the world all the time, and don't automatically think to blame the citizens of those countries.

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You are right, of course, and I apologize I hope you get your money and some of your freedoms back. Hopefully I will see you all back at the tables in the next few years.

[Richas]

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FFS you are confused about so many issues. Listing on a UK stock exchange is utterly irrelevant to any issues of consumer protection.

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but it is relevant to the credibility of the UK stock Market, City of London and UK financial regulation. It would be politically and economically unacceptable to let Neteller fail because of a "run".

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In any case the funds are in US$ so could not possibly affect UK capital markets.

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That would be the City of London that handles more foreign Exchange transactions in dollars than any other financial centre? The currency the funds are held in is entirely irrelevant in terms of the response.

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As posted above only Neteller UK is regulated.

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Which is one of the reasons why the UK regulator would not allow it to collapse as a result of a run. The only scenario of non payout is a collapse due to a run, nobody believes they are crims who have run off with the money.

This is about consumer protection but it is also about the credibility of the UK and the City of London.

The issue of bank concerns re the legality of Neteller are real but as they have withdrawn from the US and we are only talking about new lines of credit this should not be a real barrier. As for the subpoenas and arrests, if anything this will annoy directors of banks and make them more willing to help, the anger in the City on this is very real.

FFS your post failed to address my point which is that the UK and the City can easily cope with a run on an institution like this and that the credibility of the City depends on making sure it does not fail.

Finally the UK's position on this is clear. The UK is regulating and granting licenses to online operators. UK gov policy is to make the UK the largest centre of online gambling possible via rigorus regulation. The UK gov will not want a collapse due to a run (especially given the recent scandal on Farepak a Christmas saving/buying scheme that went belly up).