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When they purchased hosting the domain was setup with the old host as the owner and not them also they had not been given any info about login info for their hosting account.
What kind of rights do these people have? What course of action can they take to obtain the domain and hosting?
Thanks for your advice
The contract between the hosting company and the client might shed some light on this specific situation. If the client is serious about getting his domain and site, he should contact a lawyer.
The only exception is if there is in writing that the hosting company was buying it for the client and I knda doubt that happened.
They just took advantage of him/her and got the domain name to let them build value for it so they can sell it at an auction.
I can see why they have gone busted because of they way they do business.