I would assume this could happen with any bad company managed or unmanged. There are plenty of trustworthy unmanged hosts out there. This company obviously has some problems and will likely fail if they do not get them fixed. Sometimes its hard when offering unmanged services. People buy unmanged servers and then ask for things that fall into the managed realm all the time. We do our best to be upfront about the services we offer. I always feel bad telling customers no but have and try to do so in such a way that is diplomatic. The worst thing you can do is ignore your customers. You need to keep the communication open and try and describe your services and level of support honestly upfront. When buying services you really need to do some research on a company and make sure you know what your purchasing before hand.