Recently, I close all my positions and I put my CFD account on hold and I took all my money out from this particular CFD provider as I needed elsewhere. Three weeks later they contact me and told me that I owe them money due to rights issue being excercise when I shorted the stocks before I close my account. On the day of the share being release to the market, they fill me in at 4 cents higher than the high as well. This is probably a mistake by the dealer as mistake that favours them is all too common from this bucket shop provider. I am not happy about this as I use this money up already and don't have this money any more and can't cover this. If they know that there is a right issue, they shouldn't have let me withdraw all my money. They have threathen me with possible legal actions such as court appearance if I don't pay up.
Have anyone been in this position and don't pay up? Or have money owing to CFD provider thru margin call or something else. I am just wondering, what if you don't pay up? Or what are your options?