Earlier quoted context omitted.
http://www.reddit.com/r/web_design/comments/jk195/stay_the_f... He explains that there was a valid reason for not being able to pay the bills (I.E. PayPal having a problem). This* then suspended all of his accounts (Including the ones that had already been payed for) and, from the looks of it, were very unhelpful in resolving the situation. Yes, if the PayPal payment didn't come through the domains should probably ha…
> there was a valid reason for not being able to pay the bills (I.E. PayPal having a problem) // It's an excuse, but it's not payment. Continuation of the contract would presumably require payment. A clients inability to pay ends their right to receive service. Sure a larger company can usually manage to give grace in such situations (but often won't) but small businesses, as this appears to be, seem to suffer a lot…
Did you not read the comment on the Reddit link GP provided? It is by the customer in question and very clearly lays out the situation, including the amount of payments blocked by PayPal
(Of course, the assumption is that the details are accurate, which IMO is a fair one to make, given that the service provider hasn't been too forthcoming)