A HighRanking's Forum thread named I'm Stuck With A Bad Seo Company, what to do now? offers some advice to a member who took the wrong action when selecting an SEO Company.
Jill Whalen, a well known SEO, offers the following advice;
If you really feel like they're not doing what they're supposed to be doing, you should document it all in a long email to them and tell them that you are firing them. Then don't pay any longer, and move on.
It's possible that they might sue you, but if you have good evidence documented, they probably won't bother. It's not going to be worth their time and trouble. If they do, you can decide what to do from there.
If you are going to cancel an automated billing on your credit card, "You'll need to provide written notice the the credit card company, and probably state reasons." Or you can file "a complaint with the BBB often yields decent results: http://complaint.bbb.org/."
The member was persistent and reported;
After repeated e-mails and documenting problems, they finally agreed to let me out of the contract. Not sure if I can get back any of the $ already paid, but at least I'm no longer stuck with them. Thanks for all of your advice. If I hire another company, I will be MUCH more careful this time!