I created my own web hosting company while at University to help fund my studies and have came across a number of companies that do this to their clients.
Their prices are ridiculious as well... 40GB for $1? A 40GB hard drive costs well over $12 a year and support tickets are usually very expensive so they would end up running at a loss.
My general rule is, register .co.uk domains yourself with companies like
123-reg | Domain names | Domain name registration and always look at the reviews for hosting companies on sites such as
Web Hosting Talk - The largest, most influential web hosting community on the Internet
If you need any help feel free to contact me BOAC.