Sorry to say this but that is just rubbish! If your domain was being held hostage you can complain to Icann. It is illegal to do that. I cant even deny a domain being taken away from my control when I have control over the same domain name when they owe me money! If I say it cannot be done then I can lose the right to register domains immediately and lose every domain I control including my own to someone else to control.
Originally Posted by mabagwell
Threaten with a formal complain (in writing via email address at your ISP or free email address) first and give them a period "Eg, if this isnt done in 48 hours" and if it isnt done, then you can go to another registrar and give them your business registration details and show them you own the domain and ask them to FORCIBLY take control. I have done that before when the original person who controlled the domain actually went out of business and couldnt be found on one occasion, when the person I was helping had an accounting dispute with the person they were leaving on another and when a registrar flatly refused to let anything go on yet another. If all else fails you can complain to Icann and have their heavy hand help you out, too.