The #1 way that a web hosting company can screw up

I received an email from Dreamhost this morning stating:

This is just a notice that your DreamHost Account has a balance of $208.95 (including any charges not
due until 2009-01-24), with $208.95 due (since 2008-12-24).

You also have $189.05 past due (owed since 2008-11-24), and if
by 2009-01-24 you do not pay at least the $189.05 part, your
account will be automatically suspended until payment is received.

WHAT DO YOU OWE MONEY FOR?

We have the last payment on this account to be $9.95 on 2007-12-24 00:18:41.

Since then the following charges have been made to the account:

2008-01-04 – $9.95 for “Domain Registrations” through 2009-01-11.
2008-01-24 – $9.95 for “My Strictly Business SALE!” through 2008-02-23.
2008-02-24 – $9.95 for “My Strictly Business SALE!” through 2008-03-23.
2008-03-24 – $9.95 for “My Strictly Business SALE!” through 2008-04-23.
2008-03-24 – $9.95 for “My Strictly Business SALE!” through 2008-04-23.
2008-04-24 – $9.95 for “My Strictly Business SALE!” through 2008-05-23.
2008-05-24 – $9.95 for “My Strictly Business SALE!” through 2008-06-23.
2008-05-24 – $9.95 for “My Strictly Business SALE!” through 2008-06-23.
2008-06-24 – $9.95 for “My Strictly Business SALE!” through 2008-07-23.
2008-06-24 – $9.95 for “My Strictly Business SALE!” through 2008-07-23.
2008-06-24 – $9.95 for “My Strictly Business SALE!” through 2008-07-23.
2008-06-24 – $9.95 for “My Strictly Business SALE!” through 2008-07-23.
2008-07-24 – $9.95 for “My Strictly Business SALE!” through 2008-08-23.
2008-08-24 – $9.95 for “My Strictly Business SALE!” through 2008-09-23.
2008-08-24 – $9.95 for “My Strictly Business SALE!” through 2008-09-23.
2008-09-24 – $9.95 for “My Strictly Business SALE!” through 2008-10-23.
2008-10-24 – $9.95 for “My Strictly Business SALE!” through 2008-11-23.
2008-11-24 – $9.95 for “My Strictly Business SALE!” through 2008-12-23.
2008-11-24 – $9.95 for “My Strictly Business SALE!” through 2008-12-23.
2008-12-24 – $9.95 for “My Strictly Business SALE!” through 2009-01-23.
2008-12-24 – $9.95 for “My Strictly Business SALE!” through 2009-01-23.

After my “what the hell is going on?” email to their billing department bounced, I checked the Dreamhost Status blog to find their Billing Issues post.

Customers’ credit cards were charged, bank accounts were drafted (many were over-drafted). This is going to be very, very bad for Dreamhost. I’ll be curious to see how they redeem themselves. I think at least a free year of hosting services would be a decent start.

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