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Ok guys heres what happened.
I had a one month free trial on my xbox 360 account with auto renewal ON and it was linked to my paypal account. I literally have 22 cents and a empty prepaid credit card linked to my paypal, but when the trial ran out i received an email confirming my new one month xbox live renewal but i did not get charged for it on my paypal account. So to me right now its looking like free xbox live. If anyone knows anything about this please let me know since i dont really know wtf is going to happen as far as microsoft with the billing.
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sorry dont really know how to upload pics but the link should work
EDIT: This was on a dummy account just so i could use netflix and so on.
But i was never banned on the account all they did was email after about 3 weeks saying that payment was rejected or something like that lol.
So if you want to do this with a dummy account go ahead you will not get banned and will get a total of two free months of live. I did this on two accounts and nothing has happened so good luck.