Friends of me had it happen with web hosters, server housing and domain registrars. When they were just starting out and forgot to tell the provider to get the monies from their credit card, or whatever, they would just disconnect the server or park the domain. Happened a few times and is really annoying. I had assumed it to be a function of the far better giro system here in Europe, but since a few months I'm paying most things by regular credit card bookings instead of bank transfer, and it still works.

Maybe people just need to ask for and demand automated payment?

the fact that it happened twice I think is telling though. At that point they have only themselves to blame.