Old thread but figured I'd post anyway. I've purchased one of these before, it was like an account with 10,000 MS Points on it, and a lot of other things, like full rank in COD: WAW, COD: 4, and some other stuff, and like 10 months of Xbox Live Gold. I didn't buy it to use it, just for the MS Points because it was only $50 and I figured I'd just download a lot of stuff and use on my account.
After I recovered it I looked in the CC info and it had someones name and stuff in it so I went on Myspace and looked up the name and found someone, contacted him and asked if his account had been stolen, he replied back and said yes and that he's been in contact with Microsoft so he gave me his reference number for them. So I gave him his account back, and then gave him all the info of the eBay seller and he gave it to Microsoft.
Shortly later the seller refunded my money and said he gave some stuff to this guy for the accounts, like some accounts on some PC games or something and the guy gave him a couple of Xbox Live accounts, and he told me he had no idea and asked me to tell the guy that he refunded and what not. I still don't know if he was telling the truth or just trying to save his ass because earlier he told me "I'll have more of these in a couple week if you want to buy again." So I didn't really see it as something that would've been a one time trade off, and he didn't know they were stolen.
Anyway, got my money refunded, and the guy got his account back, in fact, he's one of my better friend on Xbox Live now, and Microsoft said thanks for turning him in and giving all the info on the eBay seller because they never really catch these guys and they said that info would really help. So, I urge any of you people that purchased these accounts to look in the CC section and look the person up on Myspace or Facebook with their name and zipcode, and then contact MS and report the eBay seller.
Also, I think the $35 account your buying is from someone who purchased it for $25 off another site I know, (don't want to mention it because I don't want to attract buyers to it seeing is it's probably pretty illegal), but they sell 5000 point accounts for $25, and 10,000 point accounts for $48. They'll sell you like a silver account with like nothing on it, no gamerscore, CC info, or played games, but if you look in the info they'll give a name and address of some random person, and I got one of these once as I really wanted some MS Points and same thing. Found the person on Myspace again but profile was unaccessed for like a year or so, so I just reported to Microsoft. So, any one that purchased these, try to report to Microsoft if you can.
I believe the people selling these are the same people that were selling the 4000 point cards for $25 a piece, and a lot of people were saying that those were purchased from Amazon with stolen CC's and then sold really cheap, and they probably just found it to be a better option to start purchasing with the stolen CC's straight through Xbox. Although, I'm not sure how they get the CC info and all that removed from the account.
Still, I wouldn't buy from any of these, and if you have already you should probably report to Microsoft. Also, to the person saying that the only downside is if you have to re-download the stuff you can't, wouldn't you always just be able to recover the deleted account if you need to re-download something and download it fast? And the same thing goes for switching licenses...if you get a new console couldn't you just recover the Gamertag and transfer the licenses over and delete it again? Not that I'm condoning this at all, just wondering about that.