Has your friend tried actually resolving the issue, or looked into things more..... from what you have said it comes across as if they did it, and he never looked at them again, If that were to be me, I would be in constant contact until I got to the bottom of the issue, and if it were because we were offering webhosting, then I would be looking to see if they were taking all webhosting accounts (quite a few) away.
We currently use them as a "secondary" payment option and have never come across any problems..
Chris