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Can they do this?

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I had broadband for a long time with the same company which was a 2gb limit/month package however we were using more than this and around September time last year they contacted us to tell us we were in breach of terms and conditions and to use less. So I called them and arranged to upgrade to their 'unlimited' package thinking this would solve the problem, we then received a letter and an email in December informing us we were still in breach of terms and conditions (fair useage policy) so they had no option but to close my account! As we were moving in December this wasn't too much of a worry but when I checked my online statement from them they had the cheek to charge us a £50 or so cancellation fee! I called them to check why they had done this and explained I thought that I had started a new contract with the unlimited package and that I should have had more warning, they were unable to reactivate my account but advised a credit would be put on my account. As far as I know the credit still hasn't been applied as they are waiting for me to send back the router but if this is all cleared up I would like to go back with them so see it pointless sending back the router (especially as I can't find the power cable since moving:embarasse ).

I have also found on their website details of the 'fair useage policy':
Am I likely to be affected by the Fair Use Policy?
If you don't use file sharing software or download large files from the Internet it's unlikely you'll ever be affected by this policy. If you do, all we ask is that you do so considerately, perhaps by downloading outside the peak hours of 6pm to 11pm.

What will happen if my use is very high?
If you only occasionally have very high usage, we're unlikely to be concerned unless it becomes a regular occurrence. If this does happen then we'll get in touch to help you find ways to reduce your usage.

If your usage continues to be very high, we'll get in touch again. Ultimately, if your usage still remains excessive despite our attempts to help you reduce it, we may have to suspend your service and possibly close your account.

We don't want to do that, and with your support and goodwill we'll work with you to see if we can avoid this happening.
At no point did they contact me and tell me to avoid downloading between 6pm - 11pm which we would have been all too happy to do.

Any advise would be much appreciated.
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