From Premium to Basic account. Scary stories

[Lali Kamala]

I've heard scary stories about that if a user goes from the Premium to the Basic account, then he can be baned in SL.
Is it true or is it a lie?

[Ariel Vuissent]

Not true. Switching from Premium to Basic is not in any way a violation of the ToS or Community Guidelines, so whoever told you that probably did something, or know someone who did something, that WAS against the ToS/CG and was banned for it, and is now saying they were banned just for switching back to a basic account.

Make sure, before you switch, that you sell or abandon any and all mainland, including your "free" 512sqm plot or your Linden home, if you have either. On your dashboard, check the Land Manager and make sure that you don't own any billable land. Then you can go ahead and downgrade. (Otherwise you'll be charged for land.)

[Ansariel Hiller]

Whenever somebody tells you they heard from somebody else that <insert whatever you can think of>, then it's 100% fake and not true!

[Lindal Kidd]

It is a lie.

There are some advantages to a Premium account, but there are also some advantages to a Basic account (besides being free, I mean).  With a Basic account, there are no recurring charges, and therefore you can't fall into arrears and get your account deleted by Linden Lab.

If you are planning to be using SL only occasionally, a Basic account makes a lot of sense, because you can be sure it will always be there when you return.