Ha, if they said that to me, I would've told them to cancel my account, then I'll call and sign up for service again.
Reminds me of when I got a new car last year. My old car had XM radio in it, and my new one has Sirius. They're the same company, but when I called and asked to have my account switched to my new car, they told me there would be a $15 "transfer fee." So I told them to just cancel my XM account, and I would hang up and call right back and get a new Sirius account. Well what do you know, the fee was waived.