A not so fun client to work with... Need advice

So, I got a client under semi odd terms, the person wanted to be a rep, was/is working for a kitchen company, referred them and then did nothing else (but micro-manage and offer input on stuff he had no knowledge about)

My problem was the owner is functionally illiterate and can't read e-mails or understand anything, so he pretty much appointed this guy in charge of it since he recommended it to him.

So, they've been paying me $399 a month for SEO, since December 1st. Around February they hadn't seen any leads or calls coming in, which I informed them their site wasn't converting because the site was in top 5 for all keywords we were targeting and it was getting traffic from the right keywords (10-15 hits a day, I know it's not a ton, but we're looking at ZERO calls a month). They they informed me that they would only continue with my services until March, if they hadn't seen results (sales/leads) then they were going to stop it. Which I said no problem at all, there is NO contract or written agreement at all in this.

So, I found a guy on here who was offering free web design to the first 5 people that replied to his post, and I made the cut.

I knew these guys needed help and weren't willing to pay anymore money so I took that free website offer and gave it to them, hoping to put in a web site that would actually convert the traffic, but, the deal I made was they would have to stick with me until June if I came through on this site.

They agreed, I had their website transfered to my host so we could load up word press - the host they had had it's own html editor which was very limited.

So, I transferred it over (in hind sight prematurely) and was waiting for the web design guy (who made a mock-up and was quite responsive for a while) to finish the site to load up, and he eventually just completely bailed out on us. So, I'm stuck with a crappy word press site for these guys.

I made them a site with the mini-site generator in Main Street Marketing Machines just to get in front of traffic and hopefully convert, I suggested them to make a more enticing offer to get people on the phone, but they told me to stop with the "fluffy" stuff and get people to call them, he insisted they needed more "Google", meaning they need more SEO...

I told him they were well ranked for their main keywords, and while there is room for improvement, they stopped paying me, so I don't see why I should continue the SEO work.. I told them it's fine, and gave them direct contact to my SEO guys, essentially cutting out my fees and told them to fly at it.

From this point I'm trying to remove myself from the situation, still telling them I'll take care of their website, but to let me put my offers in place so we can try and convert the damn traffic. They would come to me with complaints like the website is loading too slow; I ran tests on their site and a competitors, load time for their site: 97 milliseconds load time for competitor: 6 seconds.

He ignored that, and got onto something else, and then something else, and everytime I politely showed him facts that would show he is wrong. I finally said just left me load up your old website and transfer your hosting back to the old company and I'll be on my way, this didn't work.


THENNNN, he's just responded with, they're going to come after me for a refund because none of this worked??

Now, since I'm a marketer, and not a business man, I really have no clue if they actually have anything against me here, literally no contracts were involved and I never guaranteed any sort of results.

Any advice please, thanks!