NETeller settles w/DoJ

[lojo]

Great points, and thanks for the NLR update Jetset.

If memory and reason serves me, the the T&C say that accounts bear no interest. It would be a great gesture to offer it, but they are a little strapped right now. As for Canada there may be too many banking links with the states, and the border too porous and easy for we Yanks to open accounts there with a 'buddy'. But it would be good to hear them answer. I would guess though that J. Todd was able to land the iview by assuring a pre-arranged set of questions... is it too late to add some?

[jetset]

When Neteller wrote those T&Cs I doubt that anyone could have envisaged the world of trouble that they would face and the fact that US player funds would be tied up for six months.

I therefore don't buy into the T&C rationalisation, and I would venture to suggest that even in an Isle of Man ringfenced seperate account there was a tidy amount of interest accruing.

And we have yet to see a Neteller explanation for the precipitous exit from Canada.

So, yes - as you say "But it would be good to hear them answer."

[kengam]

Pay us our damn money already. I want my 70 grand and be rid of this whole ugly industry

[theAPCW]

Nevertheless, these are legitimate and valid questions that Neteller has not answered - and they are pertinent to those of us who use/used this "service" and would like to hear what the management rationale behind this remarkable decision might be.

Yes, all questions are valid.

I can certainly steer Mr. Starr this way and see if he would have an interest in a follow-up segment. NETeller is still walking a thin line for the moment... not as razor thin as a month ago, but certainly uncomfortably thin.

I still believe that NETeller felt they had no choice but to leave Canada... just like they left the US. I do not believe that they would have abandoned another lucrative market while in the very midst of already difficult financial times if they didn't honestly feel they absolutely had to.

[theAPCW]

=== Neither the APCW nor I have the authority to speak on behalf of NETeller =====

That said, in regard to the closure of operations in Canada:

"Our actions in Canada were in line with other payment processors and gaming operators who saw a change in that market at the same time as us."


In regard to the question of interest on the funds:

"...we are not regulated as an entity that is allowed to offer interest bearing accounts (e.g. not a bank), and so our member T&Cs don't allow it."

[jetset]

Pay us our damn money already. I want my 70 grand and be rid of this whole ugly industry

Part of the Neteller settlement with the DoJ is that payment of US players starts no later than 30 July....so Monday is the date that things should start rolling.

But with $94 million to repay to scores of thousands of US players it may take awhile. US players have been informed that they can access their accounts and put in their withdrawal orders right up to January 2008 (does that hint at how long this process could take? Maybe.)

Regarding interest and APCW's passed on comment above - I wonder how much interest accrued to Neteller from that supposedly seperate and ringfenced players account? I would bet quite a tidy sum, and not at the very least sharing it with players doesn't wash - if Neteller had the will there would, I am confident, be a way, and the IOM authorities would cooperate under these truly extraordinary circumstances that have so badly prejudiced US players.

However, I imagine that most will just be so relieved to get their dosh that they will be prepared to overlook the issue of interest on their frozen deposits.

[jetset]

Quote: "Our actions in Canada were in line with other payment processors and gaming operators who saw a change in that market at the same time as us." Unquote

That strikes me as flannel - what change? what other processors and operators?

There were none until Neteller pulled the Canadian plug without any apparent reason (unless it was behind-the-scenes pressure from the DoJ who were holding two of Neteller's major shareholders)

[sdaddy]

Regarding interest and APCW's passed on comment above - I wonder how much interest accrued to Neteller from that supposedly seperate and ringfenced players account? I would bet quite a tidy sum, and not at the very least sharing it with players doesn't wash - if Neteller had the will there would, I am confident, be a way, and the IOM authorities would cooperate under these truly extraordinary circumstances that have so badly prejudiced US players.

This may have to do with why Neteller is asking (but not requiring) U.S. members to sign a release before they request their frozen funds. It could be a way to shield them from future lawsuits related to the accrued interest.

Quote: "Our actions in Canada were in line with other payment processors and gaming operators who saw a change in that market at the same time as us." Unquote

That strikes me as flannel - what change? what other processors and operators?

Perhaps Neteller is alluding to Firepay's exit from the Canadian market last February.

[jetset]

Firepay exited after Neteller, as far as I can recall.

I think you're right about the release form - almost certainly a move to preempt any future class or individual actions on the interest or any other issues arising from the manner in which Neteller has treated players and (possibly) their privacy.

[jetset]

Press release from Neteller out this morning (July 30)

Distribution Plan Implemented Today


Monday, 30 July 2007 – NETELLER Plc (LSE: NLR), the independent global online payments business, today announced that US customers now have access to their accounts online to request the withdrawal of funds.

As described in the Company's announcement of 4 June 2007, under the Distribution Plan agreed to with the United States Attorney's Office for the Southern District of New York, US customers will be able to commence the process to achieve a return of their funds currently within their NETELLER e-wallets.

US customers will be able to access their NETELLER accounts online until 26 January 2008 and make a request for their funds. In accordance with NETELLER’s Terms of Use, no interest on account balances will be paid.

NETELLER will not charge fees to customers to process requests for funds.

Funds will be distributed either by electronic transfer to the bank account on record with NETELLER or by a cheque to be sent to a mailing address as confirmed by the customer.

If a US customer has a bank account already registered with NETELLER, funds transfer will be by electronic transfer subject to confirmation by the customer that the registered bank account remains valid.

US customers will receive the entire balance of funds in their account; no requests for partial payments will be processed. US customers cannot use their accounts for any transaction other than to request the funds.

Further information is available on the Company’s customer website, www.neteller.com, in particular the US customer update FAQs which are posted at updates.neteller.com.

"We are very pleased to start the funds distribution process today. I can assure our US customers it has been our highest priority and we'd like to thank them for their patience during this period", said Ron Martin, President and CEO. "The implementation of this plan marks another major step forward in the Company's recovery strategy".