Crikey Julie what a cautionary tale!! What an awful thing for you to have gone through, and to not be able to tell anyone either, I would have struggled with that too.
I would have thought exactly the same as you, that the worse that can happen and you have to offer a grovelling apology..
I most certainly wouldn't chase anyone for money who had made a simple mistake and instantly took it down unless I knew that they had made shedloads of dosh. I think that's awful and I hope he gets Tasmanian Willy Rot or some such comeuppance.
I can see the point though, I suppose if someone put one of my stories on a website without asking me I'd be pretty peeved too.
Thanks for telling us though & I'll pass the message on & if I ever use that sort of website I'll know which pix to avoid!
Lynne x