Inetgiant Inc. renewed the account without permission, seems card information stored in database Staten Island New york

Inetgiant Inc., NY is reaaly very bad company. My friend used my credit card to start his account with Inetgiant. That time transaction was not properly preocessed also he did not get any confimation email from them, still he paid the money.
Next month on 21 Feb 2009, he got a email from them asking him about recharging of his account for next month, he dropped email to them saying that he is not interested but still , money got debited from credit card account.
We tried to call them, no responce. emailed them the situation, no response.
The point is, without entering any details of credit card, how can anyone take out the money? does this means that they are storing credit card information in their databases, which is completely illegal.
I have filled the dispute from with credit card company, lets see what happens now.
If anyone is willing to help me, plz help
Thank you

Gauri_2984
Bangalore
India