As we just posted here, Livedrive recently sent account closure notices to Backify customers. Also, we want to mention that this scenario is a good reason why you may want to stick with the larger, more popular online backup companies (such as MyPCBackup, Backblaze, SugarSync, Mozy and others as recommended by us here) as they are much less likely to have these issues).
Here is Backify’s explanation:
LiveDrive Account Closures
As all Backify members know now, LiveDrive has closed all the accounts. We would like to clear the situation up with our customers.
As many of you know, you were unable to change/reset your password for the last 10 days or so. This was due to an error in the LiveDrive API. We made multiple contacts with LiveDrive through email and phone to get this sorted out. Their tech support kept us saying that their “dev team” is working on it. But the “dev team” could not sort out the issue in 10 days.
Apart from this, their payment system failed on November 8. What that means is, we could not create any more new accounts, because their payment system kept declining all of our credit cards. Again, we contacted LiveDrive multiple times, but they could not sort out the issue in over 7 days.
We contacted them again yesterday and protested with strong words about the delay in providing a solution to our problems. We asked them to either resolve the issues, or to close our account and refund us. They responded today by terminating our reseller account and all the accounts we have created.
As for the email they sent to our customers, we assure you that you do not have to worry about your credit cards being used fraudulently. We did not store your credit card numbers in our system. And about the payments that you have already made, we will refund all of them over the next few business days. You do not need to file any disputes or chargebacks with PayPal or your bank.