yeah, but the customer didn't want the money, they wanted the service. That's why they gave the money in the first place.
Obviously it's a very good showing that 37S is refunding customers their money, but I wouldn't be completely happy if I were a customer since what I was promised (the service) is no longer being delivered. I would feel a little burned.
Do this often enough, and customer trust is eroded. How many folks are going to think twice before signing up for 37S next new product? I would.