Erica,
It seems to me that the most effective recourse would be to send these folks
a letter from a lawyer:
1) outling the history of what has transpired in your dealings with this
company, including the misrepresentation of use.
2) stating the fact that they are legally liable for not having signed the
use agreement before using your image. This consititues copyright infringement.
3) requesting them to cease and desist from the further production and / or
use of your image.
4) there is no legal permission to use your image nor will there be in these
circumstances.
5) include a check refunding their money.
6) send by certified mail.
Cheers!
Dave
David Harvey
Artifacts
2930 South Birch Street
Denver, CO 80222
303-300-5257
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