If they are asking for your password however, then you have to assume that this is the tip of the iceberg security-incompetence-wise. what else are they screwing up?
But incompetent security by people who should know better is not limited to a few internet hosting providers. A year or two ago, Chase Bank called my wife up (i.e. they called our home) and asked my wife for her credit card number. My wife refused to give it and they suspended her bank account because of it. She had to call them and spend an additional hour on the phone getting that straightened up and shortly after this they abruptly cancelled the account with no explanation.
Any time this sort of thing happens do yourself a favor and do whatever you have to in order to close your account and move somewhere else.
But incompetent security by people who should know better is not limited to a few internet hosting providers. A year or two ago, Chase Bank called my wife up (i.e. they called our home) and asked my wife for her credit card number. My wife refused to give it and they suspended her bank account because of it. She had to call them and spend an additional hour on the phone getting that straightened up and shortly after this they abruptly cancelled the account with no explanation.
Any time this sort of thing happens do yourself a favor and do whatever you have to in order to close your account and move somewhere else.