It sounds to me like you failed to renew your domain on time, and missed the grace period. Redemption grace period is not a fine, it’s a normal period of the lifecycle of a domain name during which they (the registry, via the registrar) give you a last chance to get your domain back. This is well documented and part of the conditions you accept and need to understand when you rent a domain.
You said you had another payment mean, but they’re likely not allowed to use it without your approval. If you missed the email requests for approval, they couldn’t renew and you legitimately lost your domain.
The annual contact accuracy check (WDRP) usually doesn’t result in deletion but suspension, so something sounds fishy here. Maybe it came at the same time as the renewal (which makes sense) but I’m pretty sure it’s not the direct reason for deletion of your domain.
However the above is true only for gTLDs, not for ccTLDs. What’s the TLD of your domain?
(Disclaimer: working for another registrar, GoDaddy has some shady practices but they still abide by ICANN rules which would prevent them to delete a domain just because of a WDRP)
I don't know the full details but AFAIK there's still a dispute between Verisign (.com, .net) and Afilias (.info), they both accuse each other of cheating at the 2016 auction.
You said you had another payment mean, but they’re likely not allowed to use it without your approval. If you missed the email requests for approval, they couldn’t renew and you legitimately lost your domain.
The annual contact accuracy check (WDRP) usually doesn’t result in deletion but suspension, so something sounds fishy here. Maybe it came at the same time as the renewal (which makes sense) but I’m pretty sure it’s not the direct reason for deletion of your domain.
However the above is true only for gTLDs, not for ccTLDs. What’s the TLD of your domain?