Is it legal for Vexxhost.com to ask for Cpanel Passwords?

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I have been a vexxhost.com customer for over 3 years. But recently I have become concerned. In the last year or so when you contact Vexxhost.com customer support, they will ask you to give them your webhosting cPanel account username and your cPanel password as prove of your account ownership, before they serve you.

I find this to be very strange, because other webhosts may ask for the last 3 digits of password, or some verification question etc. Also vexxhost.com never used to ask for a hosting clients password.

I just wanted to know from other webhosting companies if this practice is acceptable in the webhosting industry.

I fear that there can occur issues of disgruntled employees and possibly dishonest employees who may use a clients username and password to commit undesirable acts, like steal domain names, steal licensed software etc etc.

Are there any other webhosting companies that tell their employees to ask hosting customers for their Cpanel account password? Do hosting company employees have access to client’s passwords?

Is this NOT a very dangerous trend that Vexxhost.com is setting? I would assume that employees of web hosting companies do not have access to hosting clients passwords, since the passwords in the database are encrypted plus usage of random salt keys etc etc.

This is another reason why I have become skeptical of Vexxhost.com can you people please give me your opinions on this?

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