no, they cannot cancel an account while owing money on it andw/o providing a reasonable, factual, explanation ...
Actually, they can and they will. They are not the only company that has done this to their writers. I have it on good authority that several other firms engage in this practice. Normally, they cancel the account when they owe their writers about a thousand or more. When the writer protests the fines and other penalties that would have ended up with him receiving only 20% of the actual salary they owed, the account gets cancelled. They keep the full amount and do not feel the need to explain to the writer why these things happened. They always believe themselves to be above the law and unfortunately, it often appears that way.