i signed up with webhostingpad.com creating a domain name but i cancelled my account almost immediately because i realized it didnt have some of the features i needed to create my site.

so they cancelled my account as i expected but im still paying for the domain name???

here is the Domain Refund Policy

Because we are not able to delete and or untransfer the domain name once it's registered or transferred, we will not be able to issue a full refund. Therefore, if you cancel within 30 days of your purchase, you will be charged $14.95 per year for the domain name. If you have any questions, please let us know.

i mean i cancelled my account but im still paying for my domain name? is there a way to resolve this? i still want to use the domain name with another web host so do i have to transfer the domain name?

can anyone give me some suggestions on what i should do?

this is what a customer rep said

"The policy prevents people from signing up a hosting plan, registering a free domain, cancelling within 30 days, recieving a full refund AND free domain. Technically someone could sign up 300 times and cancel all accounts and get 300 free domains if it were like this. So yes, unfortunately if you cancel within 30 days of signing up and you registered a free domain, you will be refunded - $14.95 for the domain registration. You own the domain and can transfer it to another hosting company or registrar but that does not waive the $14.95 refund policy since the domain got registered and you would own it."
thanks.

I like to be supportive, but there policy seems completely reasonable to me.
Transfer the domain to another registrar if you like and don't renew it next year if you don't want it.

Just leave the domain where it is for now and set up your web hosting elsewhere. Those are two completely different things.