yup, dont know why people dont use the cancel process so their account is cancelled and no further invoices generated as now the system will auto terminate if they dont return and the invoice will remain, so if they try to sign up again the unpaid invoice will prevent them until its paid.
1&1 hosting is a rigorous company. You have to phone them to verify when you want to cancel the service. It is not surprise for your situation. Their price is affordable but you have to ponder before you purchase.