Backify escalates the conflict with LiveDrive

I have just received this email from Backify, which seems to be a direct answer to LiveDrive's advisory against Backify... It seems they didn't like being viewed as frauds and their users being told by LiveDrive not to give them credit card information!

Dear [Full Name],

We are writing to you in regards to the recent action taken by LiveDrive to close your backup/briefcase account.

Backify used to be a reseller for LiveDrive.com's services. Recently we were having some issues with their serive and they were literally unable to provide a solution to our problems. More information about these issues can be read on our homepage at www.backify.com. Tired of the service provided by LiveDrive, we asked them to close our reseller account. It may be noted that at no point did we ask them to close the accounts of our customers. But they went ahead and shut down the accounts of every Backify customer.

For every customer's account, we have paid in advance a full year's fee. So, the step taken by LiveDrive to close our customers' accounts without refunding us is totally illegal, and we are considering our legal options at this time. Since your account was already paid fully for one year in advance, we request you to get in touch with LiveDrive and ask them to restore your service. Their customer support email address is support@livedrivesupport.com

Additionally, we understand that you may have spent considerable time/effort/bandwidth to upload your files to LiveDrive's servers and by deleting your files/data without any notice they may have violated several laws. We also advice you to get legal help in case you suffered losses due to this sudden termination of service by LiveDrive.

Thanks, Backify Team