Good point...you can check out the eBuddy privacy policy
here.
This is a direct quote from it:
When you use eBuddy without creating an eBuddy ID, you provide us with your user name and password. We use your password only to log you in to the IM network and do not store it.
And certainly nothing is stored on whichever forum the widget is installed as the content is added via an iframe directly from the eBuddy website.