you shouldn't rely on your hosting provider to secure/shred your data, do it yourself.

encfs is really easy to setup and use, everybody should be using it, especially on VPS's:

    $ sudo apt-get install encfs

or:

    $ sudo yum -y install fuse-encfs

then:

    $ sudo encfs ~/.encrypted /home/private

the /home/private folder is where you place your files (web sites, etc.). ~/.encrypted is where the encrypted version is stored. when prompted hit 'p' for the default paranoid mode, enter a password and you're done. read more about it on the homepage[0]

When you are done with a server and need to secure delete, use shred -- which is installed on both RHEL and Debian based distributions:

    $ sudo shred -fz ~/.encrypted 
    $ sudo shred -fz /home/private

[0] http://www.arg0.net/encfs