Unfortunately, rats get the brunt end of the stick with animal abuse situations-Both because of their social reputation and the fact that they are so often bred as feeder animals. Unless the situation that you observed is an out of control cruelty case/health hazard/hoarding cruelty case, and unless the animal services in your area actually have the funding and initiative, there's very little you can do with reporting them to official channels. On a personal level, the best things to do are to never support them again financially, give them the opportunity to learn and improve by tactfully presenting your concerns to them, and to equally tactfully spread word of your concerns in your community and the online rat community.
For future rats, if you'd still like to go through a breeder, the best thing to do is become active on rat sites and continue to educate yourself on what makes a good breeder, what area common red flags, and who truly has a good reputation in the breeding community, not just what they say when tooting their own horn.
The former Blackwolf Rattery has written an outstanding article on recognizing red flags when searching for a breeder. This has saved me in two situations, and served as a learning tool for two others: http://bwr-rats.blogspot.com/2011/10/red-flags.html
A lot of rat lovers will encourage you to adopt a needy rat as well(some will get more strident than just encouraging and may get rude). That's an excellent route as well. It hasn't taken me long to figure out who does good work in my area of the country for both breeders and rescues.
is the biggest and most active rat-centric community in North America and a good place to start. However, go into it with a thick skin and a willingness to learn, as while they give great advice and info, sometimes they are a bit too overzealous and critical in what they consider good rat ownership. I really like the community and respect the heck out of them, but that would be my only wish for improvement.
They can give you a wealth of tips on how to continue to treat your babies, and if anyone can hook you up with future adoptions or reputable breeders in your area they can. And of course though we are currently a tiny site, we'll be happy to help out as we can too.