YouTeller Equals NETeller?  Angry Customer Wants HSBC Held Accountable Too

Rumors have been spreading like wildfire that some of the folks behind YouTeller (an upcoming third party payment processor) are actually current and/or executives from NETeller, which may not bode well for any merchant and customer still owed money by NETeller. 

While Gambling911.com has been unable to confirm these rumors, others within the industry insist this to be the case.

One operator, speaking on terms that he and his online gambling company remain anonymous, told Gambling911.com that other merchants have not yet received settlements from NETeller though the third party payment processing company claims funds have been sent via bank wire.

"I am also told, that all efforts these merchants have made to get a response from NETeller regarding their "missing" ( read NEVER SENT ) wires have been met with complete silence.

"We are also going through the same thing (as these other merchants). 
I cannot speak for other operators, but our CEO is going to be in Europein
approx 10 days and has a meeting scheduled with the FSA to file a formal
complaint.

"He advises he is also going to be paying personal visits to several of the
remaining banks servicing NETeller to apprise them of the situation. He
expects they will sever relations with NETeller once these "correspondents"
realize the situation they are putting themselves in the middle of, and
potential liability this brings them."

And customers of NETeller have been growing increasingly impatient as well.  Some are now threatening to take legal action.

One customer - We will call him 'Larry' to protect his identity - has now called upon his fellow online gamblers to rally and file a class action suit against NETeller and its executives.

"I am an avid reader of your site (Gambling911.com) and have been long before the fallout of the last month. As a NETeller account holder I appreciate the hammering of NETeller for not acting in good faith regarding its customers deposits. However, at this point, I am sick of reading articles about the company."

Larry goes on to suggest that customers should even consider taking legal action against HSBC, which had been conducting business with NETeller.

"No longer should NETeller be aloud to hide behind A governmental inquiry and allegations that HSBC has refused to do business with them. Why is no one talking class action lawsuit? these people have de-frauding innocent Americans. I think US account holders could potentially maintain several causes of action against both of these companies. HSBC has numerous assets in the United States and is publicly traded.

"The pressure from a large public lawsuit has the potential to get their attention, at the very least. We are talking about tens of millions of dollars here. Have these people lost their minds? I am sick of waiting and reading about what may happen in the future, I want to pursue suing these people in Federal Court. They cannot be allowed to skate like this."

The US Justice Department has subpoenaed a number of European banks, all of which have offices in the United States.  These were banks alleged to have been instrumental in helping some online gambling firms to go public on the London Stock Exchange over the past two years.  Some also conducted business with NETeller. 

A Yahoo News Group has been set up by one player here to discuss NETeller issues

---

Christopher Costigan, Gambling911.com

Originally published February 25, 2007 4:11 pm ET