What has happened to you with this is not right. But it is great that you are putting it out there and letting people know.
I have worked on and created a few websites for different people and their businesses. But every time I do so I always register the domain name in the name of my client. And whether they know what they are for or not I always provide them with the account details for both the domain and the hosting.
Unfortunately so many other provides of these services are not so reputable. They start up a business doing websites and think it will be great only to realise later it is not all they thought it would be but either hold their customers to ransom or leave them hanging. I feel for you having to go through this it just is not right.