Non financial institutions who hold our money - how are we protected?

daveshoelace

Sorry guys, with so many boards I didnt know where to put this. I posted something similar related to gambling companies but I guess this applies to a broader range of operators.

How is our money protected in third party companies that hold our money?

Im talking about:

Online gambling operators who hold your money between bets
eWallets like Neteller, Moneybookers and Paypal
Credit accounts when in credit with someone like Next, Debenhams etc
Any gift cards for that matter
Phone companies, utilties etc - anyone it is possible to be 'in credit' with



Im sure there are other, better examples, but basically any non financial institution you can be in credit with, how are we protected if their choice of bank goes busto? Obviously individuals are covered up to £50,000 in a savings account but surely that level of protection doesnt apply to the examples above?

KingL

I ain't paying my council tax over again!!

LongTermLurker

If you are getting credit, the company would have to be regulated. However, if you're just paying in advance, which you are with these companies, then there are no regulations to my knowledge and understanding.

The solution is not to pay in advance - pay monthly (or "what you use, as you use it") unless forced to do otherwise.