Hi,
Unfortunately, some companys do this type of thing; and I'm not sure of the legality of it. You may want to contact the online Better Business Bureau. There is a place where you can file a complaint for an online company and they give you plenty of space to tell what exactly happened.
After you submit your complaint, since this is an online BBB; what they do is transfer your complaint to the office that handles the problems from the area the business is actually in.
You usually get an e-mail either the same day or the next day, from the worker assigned to your case - and whatever correspondance they have with the company, you also get an e-mail-copy of. For me, it would be worth filing one as maybe; actually a good possibility, that this company would rather make it right with you than have an unsolved complaint listed w/the online BBB. I have used them once and they really were fantastic.
Here is their link:
http://search.bbb.org/
At the top of the page, you will see File A Complaint, click on that and it walks you right through the form - you also have a place to explain all that happened.
Kat