As often as I've been seeing this issue come up, maybe we should have a sticky to report registrars who use "unusual" or questionable systems and procedures or who have surprises that are awaiting the unwary emanating from the fine print of their TOS contracts.
I've been harping about registrar systems that are consciously designed to trap unsuspecting registrants and extract money from them and 1&1 happens to be one of the primary perps ->
http://www.namepros.com/showthread.php?t=117081&highlight=1and1
In retrospect, 1and1 had a hidden agenda working last year, (think Trojan Horse), w/ their 25 "free" .info domain promotion. Their stance is: You regged it, so you must want it. Hmm... Does that mean that registrars are the only ones allowed to reg a name for testing purposes? (Although for them, they can test a name out for traffic and if they don't like the results, will receive a total refund from the registry, if returned within 5 das).
(Another peeve I have w/ them is that they don't allow bulk name server changes to be made- each name has to be changed individually using a 3-4 click process. Just another minor inconvenience they throw in to discourrage changing nameservers so that they can have the advertising/publicity benefit that is derived from the name resolving onto their page).
For instance, did you know that GoDaddy will register a name on an overlimit creditcard and that after the credit card refuses payment will, *w/o notice* to you, turn it over to their collection agency which adds a $25 collection fee onto the purchase *for each incident*? One day, I made 6 individual purchases, (each was for one or two regs), that I had, mistakenly, paid for w/ my credit card, (the default), instead of Paypal, and was shocked when, a few days later, I received 6 seperate collection notices, each w/ a $25 collection fee, ($150 total). Despite explaining that I had erred and had meant to, and would immediately, pay w/ Paypal, I was stuck, because "once it goes to collection, there's nothing we can do". B/S!! I can think of several ways to draw up a contract w/ their collection agency that would avoid this problem and while they are at it, why not refuse the charge, outright or at least send the customer an email explaining that a problem had occurred that needed to be attended to!
Be very careful about TOS agreements for online purchases, particularly if they involve charges that are recurring, (ie name regs). The credit card companies do not treat these charges in the same manner as other purchases and will pay the company for the purchase whether or not you have available funds. Yes, you can do a chargeback, but than you are left w/ the prospect of the company going after you, putting your account into collection, which will, potentially, screw-up your credit rating. I tried to use a maxed out credit card as a way of cutting off payment for auto renewals that were difficult to turn off, and it doesn't work. One company went as far as to charge a credit card that I had "de-authorized", by taking it off and disassociating it from my account, and they succeeded in charging it! Watch out!