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This is a tough situation. In short, I wouldn't give up credit, although I'm not sure how I would work it. If i were in that situation, chances are I would resort to swearing and yelling. Regardless of whether there was a contract or not, he should have mentioned ahead of time that he wanted credit.
See you can't always play by the rules because they don't. He is trying to extort you out of something unfairly by refusing to for the third site. If you have control of the site (its hosted with you) then I would just leave the first two sites up with your credit and not work with this person anymore. If they continue to harass you, threaten to take the first sites down. The important part though, is if they keep harassing you, make sure you come through on your threat and take the first two sites down.
By what you have said about this person, they obviously aren't professional by any means, and I doubt they would take any legal action. Chances are within a few days they would be apologizing and asking you to please put their site back and telling you that you can have the credit you deserve. It's unfortunate that this is how it has to be sometimes, but what can you do.
If you think there is a risk of legal action, you may want to consult a lawyer, however from what you said I think that is unlikely.
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Cheers, John Irving: My Blog
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