Official Microsoft Policy: If You a Buy a Used Xbox 360 That's Banned From Xbox Live,

[wraggster]

Major Nelson, updating us on a periodic Xbox Live purge—banhammering cheaters, pirates and other folks of ill-repute, though not 12-year-olds—reminds us of Microsoft's official policy that if you buy a used Xbox 360 that's been banned, you're screwed.

http://gizmodo.com/5397218/official-microsoft-policy-if-you-a-buy-a-used-xbox-360-thats-banned-from-xbox-live-youre-just-screwed

[acn010]

woah...... thats really harsh from microsoft.. then if its sold as used its really fuked up.....

[Eviltaco64]

That is pretty harsh. Those banned 360s better be modded.

Anyway, this is another reason to avoid used 360s. It's already bad enough that the console has had numerous hardware problems over the years. :P