My XBOX Live was meant to expire?

Keys

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On the 2nd of March 2009 my 1 year XBOX Live Gold was supposed to expire and bump me down to Silver Membership (I signed up for Gold 2nd March 2008). The credit card that was used to pay for my first year when I signed up expired during that year and I never updated it and I thought they wouldn't try to renew, instead they'd just bump me down to Silver.

But, on the 2nd March my LIVE didn't expire (even though it clearly said it should have) and I was automatically renewed by Microsoft for another year on an expired credit card. My 360 says my subscription runs out 2nd March 2010 and only signed up 2nd March this year.

Now, MS have been emailing me to update my payment because they can't charge my credit card (but it's their fault for renewing me even though they knew the card had expired, they messaged me months ago on XBL about it) and I've basically been getting free LIVE for two weeks.

Should I bother fixing this or let MS deal with their own mistake?
Doesn't their Policy or TOS say something like it can't renew if payment method is invalid?
 
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