I assume hosting department will be sending a refund for this months hosting for every account that they cancel, else I mayself would believe it to be border line scam.
note: I have interest in this thread myself do to reselling for them for shoutcast.
Even if there terms say no refunds whos to say they wont change the terms tomorrow for shared/resellers accounts to supply a valid credit card or something to order and rest are deleted and keep all the profit.
Maybe I read it wrong but I seem to recall hdshoutcast.com advertising no licence was needed.
This was there mistake not there clients mistake.