It happened a few times when new customers wanted to move their site(s) from their current hosting company to me, they had trouble transferring the domain names to me. Their old company didn't want to release the registrar lock, or in some cases they asked money to perform this action. I've heard of companies asking up to $75 just to release the registrar lock!

I was just wondering: is this legal? It shouldn't be. Imho, people should be able to do with their domain what they want.

I don't think it's legal, nor do I think people should buy a domain from a hosting provider. I did sell domains back then to my hosting clients, but I didn't lock or keep anyone's domain. It depends on the company too. Sometimes you choose a company with "jerks" running it. Usually a GOOD and REPUTABLE hosting company, will be nice enough to help you move, if needed.

As for your domain, depending on who they resell from, you can contact that reseller company. I remember someone did this not too long ago and the owner contact ENOM. Since the hosting company has a reseller account with them and within a week, the company unlocked the domain name. I believe it is "illegal" to hold your domain name. Best thing you can do is let us know the hosting company name and url.

Bottom line is these days, never register domains through hosting companies, UNLESS you know them very well. These days, you can get a FREE reseller account from enom $8.95 and manage your own domains

Are you sure the domains were not expired and now in redemption period?

Of course it's legal. If the company name is on the domain they essentially own the domain.
Whether or not it is moral or ethical is an entirely different story, but you would never win the battle in court.

Well when you buy a domain, usually the owner's name is on it. So how does the company own it? Unless they edit it themselves, and cheat you of it. Then isn't that illegal?

I think any hosting provider don't have right to charge for unlocking the domain because it is the customer who owns the domain and he has full right to move wherever he wants. If there is any such case the customer can direcly contact the Registrar of the domain and get the domain unlock if the Hosting Provider is not responding.

Yes I'm sure, it would expire after 6 months.

They probably saw it as a way to get SOME last min money out of your friend. It's like "hey, were gonna lose these guys anyways, why not atleast get something out of them before they go, lets charge them for their domain name.. they WILL need it!"

Exactly. But how can you expect to have a serious reputation if you do such things...

Well if the company is huge, they might not care at all. I mean, you have 1000 customers and you charge them a transfer fee, now 1000 people have to pay you a transfer fee or their stuck...

I've noticed some companies care about their reputation, while others just care about the money.