Found a warning today on AVN about Segpay. [source] When warnings are issued about any banking organization, it’s best we listen … especially in light of the iBILL and then ePass fiasco. Right? I’m not saying something is wrong with Segpay but consider that they just had some legal troubles with Commerce Gate who ended up suing them and now this warning. BE CAREFUL. Here is the main line that sticks out with me …
The FSC therefore urges the public to exercise appropriate caution in respect of these entities, whilst it continues its investigations.
Gibraltar’s financial regulatory body, Financial Services Commission (FSC), has issued a warning regarding the ability of Internet Payment Service Provider SegPay to conduct business in or from the British overseas territory, which is located at the entrance to the Mediterranean at the end of the Iberian Peninsula.
The warning, which was issued to the public and posted to the commission’s website, notes that SegPay refers to itself in “Online references” as a Gibraltar company and that its website is “configured in such a way” that it is associated with the word ‘Gibraltar’ even though the word itself does not appear on the website.
“Segregated Payments Limited may therefore be carrying on payment services activities in or from within Gibraltar,” the posting continues. “Segregated Payments Limited is not regulated by the FSC, nor licensed under the Financial Services (EEA) (Payment Services) Regulations 2010, to carry on payment services activities in or from within Gibraltar.”
The FSC said it “urges the public to exercise appropriate caution in respect of these entities” while it continues its investigation.
“We are aware of this posting,” SegPay President and CEO Cathy Beardsley told AVN. “We have operated in Gibraltar since July 2010. We have been working directly with the FSC authorities in Gibraltar and are taking appropriate action to quickly resolve this situation.”
SegPay was recently sued by former partner Emanon over alleged violations of the terms of an agreement the two companies entered into in 2008, as well as an alleged outstanding note owed by SegPay’s parent, Toccata Inc. SegPay released a response to the lawsuit the following day.