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@lila Key is that it's not a copyright issue. Ownership of the images is not in dispute, as the Daily Mail have already asked for permission & therefore acknowledge ownership. This is a payment dispute.
If they don't give a satisfactory response then don't fuck about. Take them to court; don't threaten it, just do it. http://www.which.co.uk/consumer-rights/making-a-complaint/taking-a-dispute-to-the-small-claims-court/your-rights/
Get legal on them. They, as mentioned above, rely on you not taking them to court. In court, I suggest, you would win and it would be a very public humiliation their PR people would not want. Invest a few hundred dollars in a "cease and desist with damages" claim. The chances are it won't get to court however, and I understand that you will be completely out of your comfort zone! Any lawyer worth their salt will at the very least give you half an hour of their time for free just to hear you out. Then claim back the costs from Paperchase. Can you tell I'm angry? :)