That's prettymuch SOP for any company. If you threaten legal action, the best policy is to cut all contact with the potential plaintiff.
Also, I would direct you to this clause...
6.
We may terminate this Agreement (including your Software license and your Account) and/or suspend your Account immediately and without notice if you breach this Agreement or repeatedly infringe any third party intellectual property
rights, or if we are unable to verify or authenticate any information you provide to
us, or upon gameplay,
chat or any player activity whatsoever which we, in our
sole discretion, determine is inappropriate and/or in violation of the spirit of the
Game as set forth in the Game player rules of conduct, which are posted at a
hotlink located at
www.planetside.com. If we terminate this Agreement or
suspend your Account under these circumstances, you will lose access to your
Account for the duration of the suspension and/or the balance of any prepaid
period without any refund. We may also terminate this Agreement if we decide,
in our sole discretion, to discontinue offering the Game, in which case we may
provide you with a prorated refund of any prepaid amounts.