Turn 10 studios has announced that they will be taking action in the form of dropping a ban hammer of sorts on those credit glitchers. While the action will not ban the user’s gamer tag, it will require the user to delete their Forza 3 profile and create a new one.

According to sources, over 1,400 credit glitchers will be affected by the ban, but Turn 10 has been nice enough to allow these rule breakers to keep all of their liveries, layer groups, tuning setups, photos, replays, and downloads from the Storefront. It looks like the only thing that will be lost is their game progress.

The studio claims they have gone to great lengths to make sure that only those who were cheating by using the credit glitch will be affected and have their Forza 3 profile invalidated. The way that we see it, the punishment could have been much harsher; and in the spirit of the holidays it would appear that they are being generous, considering that they could have taken much more drastic action to deal with those cheaters under the Xbox Live terms of service.