I would be very surprised if under these circumstances your bank did not allow you to charge back. It appears, at least as I understand it, that they admit that they did not provide the service you paid for.
What does your bank say about it?
Alternatively, I would say this is a case for small claims court. Check and see if DC allows you to bring an out of state defendent in their small claims court. If so, do that. If not, you need to consider whether for $150 it is worth spending any more time and resources on this, but I would certainly report them to the BBB, RipOff.com, etc and let people know that they took advantage of you. So long as you do not lie and make up stories you are free to express your opinion of their services publically.
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I'm sure that if you took your proof of payment to the business, presenting the owner with a copy, then they would surely give reimbursement, in lieu of going to court. It sounds like things got heated during your last encounter. Just keep calm, and talk it out. Everything is easier that way.
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