Rackspace is a little different than most hosts. They want you to sign a paper contract, and will give you better prices if you commit for at least 12 months.

Rackspace is a little different than most hosts. They want you to sign a paper contract, and will give you better prices if you commit for at least 12 months. So its possible the OP had a good bit of time left on a contract, which he's now on the hook for. It would also make sense for Rackspace to take a smaller payment in such a case, as they wouldn't have rendered the services yet anyway.