This story is just nothing I have heard before...
What is so unusual about a registrar renewing a domain name that someone has set to auto-renew?
Waiting until the last minute to do it would be pretty stupid. Many people either change or cancel their credit card accounts, or else use a card tied to a debit card, that may be invalid or otherwise not chargeable at the time the domain name expires. It would be stunningly retarded not to try to renew the domain name well in advance of the domain expiration date, in order to provide some notification to the domain registrant if their auto-renew information were not valid.
What I can't figure out in any of this is why, if this guy didn't want to renew the domain name at this registrar - why - did he have the domain name on auto-renew in the first place?
Here's a really, really complicated tip for you - if you don't want the registrar to renew your domain name, then don't tell the registrar to renew it.
How hard is that to understand?
As Dave points out above, EVERY registrar that has an auto-renew option does so well in advance of the registration date, and they do it for perfectly sound reasons. I'm frankly surprised they don't all do it at 60 days prior, like NSI does, because that is the normal limit for chargebacks. If it is less than 60 days, then you'd have the opportunity to scam the registrar by waiting for auto-renew, doing a transfer out, and then attempting to charge back the renewal.