This is what had happened with my eBay account as it was hijacked and suspended my account. To date, I don't even bother returning to eBay (not that I use it at all as all stuff are in USA and many doesn't even cater for NZ). So I let that to rot.
As with TradeMe, it is successful but it doesn't give TM the liberty to a bully and a jerk in the field. Customer services is the most valuable asset any company cannot afford to fail in, the "shoot first ask questions later" approach can quickly burn your relationship with successful and supportive members.
Remember, bad words spread faster than the good words.
(You folks probably be lucky to maintain this exposure out to the public given the parent company is a mainstream media organisation, so that curb the bad publicity...)