I would start gathering all the documentation you have and contact an attorney. If there is no written agreement or estimate then he doesn't have any proof that you agreed to allow work to be started on the car and you may be able to pull it from the shop without paying. You will have to check with local law enforcement on that one. The last thing you want is to be in a battle with a place like that and have your car trapped there.
Where you went wrong was not getting everything in a written agreement that was reviewed by an attorney. It would be great if we cold trust everyone these days, but there are just to many scammers out there. It's really messed up, because it ruins things for the good people and shops.
Sorry I don't have any solid advice to offer you. Good luck.
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