Good story! Being proactive like this is a great idea, and I think I will try the same when we get some more. A lot of it is from this sort of thing, people who don't really understand what they are paying for which is what I tried to highlight a bit.
Yes, you're right. I currently don't have any other idea how to deal with those small, spammy SEO businesses than to raise awareness about the subject and hit their customers directly. It's sad, because the customers here are usually not to blame - like you said, they neither know nor understand what's going on here. I was quite (pleasantly) surprised by the immediate reaction of that particular person, who 'out of respect for my space in the Internet' decided to take action that cost her money. I deeply respect such people. "Vote with your dollars" mindset should be encouraged, IMO.