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We've used Verotel for two years and have not had any issues at all. In fact I credit them helping with some of my more recent successes.
I think they are under sudden and tremendous pressure to conform to an unknown set of rules, and that has led to some of the recent events concerning them.
In your case I would be more worried about finding out why these guys where charging back in the first place. The first time a sponsor reached a CB level that put me in the negative I would have dropped them.
I'm going to re-read this thread but what websites are you an affiliate of?
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