If a client paid for a service, he/she is entitled to the resources promised. Suspending a client without notice is unexcusable. If your TOS doesnt state the resources allowed to use, or if they go over that, you dont have the right to suspend them. Also, the customer is king. Without the customer, you wouldnt have anything. If a customer wants a refund, it is given. If the service is crap, then a refund is given. The owner doesnt have the right to deny it unless it is proven that the customer is just trying to get his money back so he doesnt have to pay for the service. Also, if you say "Refunds are given after the first 14 days, or if you dont like our service, you got 30 days and refund is given" then they have to give a refund...No Questions..Asked!
Also, telling everyone the host is king, and no refund will be given is going to scare away a lot of customers who might think about buying. It tells them what if they go with you and have the same problem, they will be screwed.
Now, before you tell me where do I get off saying all this, just know I have 4 years in the hosting business, I ran a good hosting business with my friend for 4 years, and had over 2,000 shared/reseller clients. The business was sold to another company after we couldnt manage it due to unfortunate events in our lives.
The customer buys 5GB of space, and 25GB of bandwith, they are allowed to use it up. Its theirs, they paid for it. You have no right to take it away unless they abuse, or dont pay. I understand if they cause server crashes, but you must talk to them first, and see what a good choice will be for them. Suspending doesnt help, and gives a bad rep on the company.
I hope I opened your eyes since you didnt want to listen to James.