One of my friends who recently opened a Neteller account sent me this notice that she had to agree to,ino order to use her account.
I don't know if Neteller always had Non-Americans agree to this, or if this is something new. If it's new, it's pretty scary.
Exception Warning
This document was last updated on 29/01/2007
1. Electronic Money Service
The NETELLER service is an e-money service and not a banking or escrow service. NETELLER is not acting as a trustee for balances that you choose to keep in your Account. NETELLER is acting only as an issuer of electronic money. You are not required to maintain a balance in order to use the service. A balance will be created whenever you use the service to make a payment funded from your bank or card. If you do have a balance in your Account you will not receive interest or any other earnings on this balance because NETELLER is prohibited by law from paying interest on an e-money balance.
2. Electronic Money Exception Warning
As an applicant for an enhanced account limit you are alerted to the following conditions that legally apply to your NETELLER account:
1. the Financial Services Compensation Scheme (FSCS) does not apply to funds stored in your NETELLER account;
2. if NETELLER (UK) Ltd becomes insolvent the funds stored on your NETELLER account may become valueless and unusable; and
3. consequently, if NETELLER (UK) Ltd becomes insolvent you may lose the funds stored on your account.
If you do not wish to be able to have an Account with a balance of over £1,000GBP (or account currency equivalent) you may still open a 'Standard' Account. A 'Standard' Account will have limits imposed on certain types of transactions (for a full explanation please see the NETELLER Account Limit Policy).
As you can see, there in no mention of funds being held in trust. clearly states that the FSA won't help you. Now they are saying it's illegal for them to pay interest (stealing 100mm is ok, but paying interest to thier customers is a no-no) As many of you recall it was only a few months ago when Neteller sent out a survey asking if among other things we'd be interested in earning interest on our balances. Funny how it's not ilegal.
I don't know if Neteller always had Non-Americans agree to this, or if this is something new. If it's new, it's pretty scary.
Exception Warning
This document was last updated on 29/01/2007
1. Electronic Money Service
The NETELLER service is an e-money service and not a banking or escrow service. NETELLER is not acting as a trustee for balances that you choose to keep in your Account. NETELLER is acting only as an issuer of electronic money. You are not required to maintain a balance in order to use the service. A balance will be created whenever you use the service to make a payment funded from your bank or card. If you do have a balance in your Account you will not receive interest or any other earnings on this balance because NETELLER is prohibited by law from paying interest on an e-money balance.
2. Electronic Money Exception Warning
As an applicant for an enhanced account limit you are alerted to the following conditions that legally apply to your NETELLER account:
1. the Financial Services Compensation Scheme (FSCS) does not apply to funds stored in your NETELLER account;
2. if NETELLER (UK) Ltd becomes insolvent the funds stored on your NETELLER account may become valueless and unusable; and
3. consequently, if NETELLER (UK) Ltd becomes insolvent you may lose the funds stored on your account.
If you do not wish to be able to have an Account with a balance of over £1,000GBP (or account currency equivalent) you may still open a 'Standard' Account. A 'Standard' Account will have limits imposed on certain types of transactions (for a full explanation please see the NETELLER Account Limit Policy).
As you can see, there in no mention of funds being held in trust. clearly states that the FSA won't help you. Now they are saying it's illegal for them to pay interest (stealing 100mm is ok, but paying interest to thier customers is a no-no) As many of you recall it was only a few months ago when Neteller sent out a survey asking if among other things we'd be interested in earning interest on our balances. Funny how it's not ilegal.
