Neteller Accounts Enter Deep Freeze

Alternative payment method Neteller has today released its latest update regarding the treatment of its US account holders. Although the announcement did not differ too much from their previous ones this month, the bottom line is this: US player funds will be frozen for an extended period without interest, and shares will be suspended.

The company announced quite plainly that "in accordance with Neteller's terms of use, no interest on account balances will be paid." US player accounts have been frozen since January this year, and larger accounts held by American citizens will be most severely affected. According to Internet message boards, there are many players holding large sums of money in their Neteller account, and the denied interest they expect each month will cause serious financial losses.

Furthermore, the promise to return online funds to US players within 75 days of a previous announcement made on March 21 has been cancelled. Neteller promises the eventual distribution of funds to its American customers, but not as immediately as some may have wished for. The announcement informs that the return of funds will happen only once the US investigation is concluded, which might take until July 13th.

According to Neteller, "the distribution plan is now agreed upon, and the company anticipates implementing the plan upon the resolution of the investigation". Moreover, Group president and CEO of Neteller, Ron Martin, stated that the agreement on the Distribution Plan represents a milestone in our cooperation with the US authorities. While we are disappointed not to have been able to return funds to our US customers at this point, we believe that the steps we have made in our discussions are significant and we hope to be able to announce further progress with the USAO by 13 July 2007."

An additional blow is directed at Neteller investors, whose company shares are to remain in limbo until further update. The reason offered by Neteller spokesman to this, is that "the continuing uncertainties the company faces". However, "the company is making progress towards achieving restoration of trading". On the other hand, the company has had approximately $60 million seized by US authorities.

Neteller also advises US players that:

A specific time will be established in which players will be able to access their accounts and make a request for their funds, however a request for funds will be the only available transaction.

No fees will be charged to players who make online transactions at this time.

When funds are distributed, they will be returned via electronic transfer to a bank account or by cheque to a mailing address, both of which should be confirmed by the account holder at this time.

No requests for partial payments will be processed only full account sums will be returned.

Further information regarding developments in this area, as well as dates and times for such transactions, can be found via email or online at Neteller's official site. Meanwhile, the court battles rage on.