You are right, this is crazy that they can get away with that, but there is no place to report them unfortunately.
I guess you could report to like BBB online, but it probably won't matter.
We register domain names too, but NOT in OUR name, WTF that is just a sad tactic on their part. Guess they are not confident enough in their services that they have to keep you there by holding your domain hostage.
Sorry to hear of your trouble
