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There's no SEO watchdog, but they are covered by the same laws as any other company. Did you sign a contract with them? Have they met the terms of that contract? If not, you can ask for a refund or try suing them for breach of contract.
What are they saying is successful about their work?
We've optimized well over 50 sites in a wide range of industries and we have one client for whom we have done an incredible job. Added 200 pages of algorithm content, got the site a PR of 5 with over 75 backlinks showing and it still seems to be stuck in the sandbox.
Is this really worth £2500?!
I would personally get a severly reduced bill or consult a solicitor....
Good luck