My friend had purchased 4 letters from Dagger Tooth.
They did not increase his level but he was able to purchase the faction upgrade.
He was level 38 OoS and bought two letters. The game showed he was still 38. But he was able to buy the level 40 OoS upgrade. A few weeks later he used Dubloons again to buy two letters and the same thing happened (minus the upgrade because it was to an off level)
We both reported it and today Rare replied and said that everything looks normal, probably because he is now a few levels higher and so has gone past the letters levels. But he is still missing the dubloons and the levels from the letters. He would have just bought the items if it wasn't going to work and it's pretty annoying that they are saying everything looks fine when it isn't.
If this has happened to you, comment in this thread and please report it. It happened to him twice, both times purchasing two levels at Dagger Tooth. If there are enough people we can get Rare to seriously address this as it is def. a game altering bug.
