[mMark]

This is plain old stupidity at its finest on Backify's part. They should have at least called, confirmed, and triple confirmed in writing that client files would be saved if they unilaterally terminated their contract.

As for the credit card allegations it seems to me as LiveDrive was just trying to protect people who used Backify's service.

We are Backify's reseller -> They cancelled their reseller account through us -> All purchased accounts through Backify are now null -> Are they committing fraud using our services?' - That's at least what they'll be arguing in court as they're being sued by a stupid company that will undoubtedly soon be sued by their clients for lost data.