Water damage woes

Greetings to everyone in the Mac community. A few months ago, my wife dropped her iPhone 3G into standing water. After spending a few days in a sealed bag with dried rice, there was no resuscitation. After doing a little research, we decided to go with a seemingly cheaper option than shelling out another 700 bucks for a new phone, and instead sent it to an electronics store across the country (which, for now, will remain nameless), that claimed to be able to repair water damaged iPhones for 1/8th of the cost of replacing the phone with a new one. After a few weeks of waiting, we started calling and emailing this retailer for status updates. What we received was seemingly canned text about how repairing the phones was a delicate, time consuming process, and to have patience. Over three months have lapsed at this point, and the last several weeks, we have received no response to calls or emails. Quite obviously, we have been ripped off. Several questions now arise from our situation.
1: Are Apple or ATT selling refurbished phones without a contract? I have scoured ATT's website, and the only refurb info I find is a price good with a new 2 year contract. We are already under contract, so is it possible to get a refurb unsubsidized, and if so, for how much.
2: What is the likelihood of getting ATT to allow us to purchase a new or refurbished iPhone for the subsidized price if we agree to re-up our contract to 2 years from the sales date (original contract date was the launch date of the 3G in July 2008). Anybody in a similar situation had success in doing this?
3: What sort of action can be taken against this electronic shop that has our money, the broken phone, and has ceased all contact? A small claims suit would be difficult given the geographical difference. Is what they have done a crime, per se, and if so, could a police report be made?
Any input regarding the above issues would be appreciated. Thanks.

MacManRN wrote:
1: Are Apple or ATT selling refurbished phones without a contract? I have scoured ATT's website, and the only refurb info I find is a price good with a new 2 year contract. We are already under contract, so is it possible to get a refurb unsubsidized, and if so, for how much.
No, it is not possible. The no contract price for the iPhone is $599/$699.
2: What is the likelihood of getting ATT to allow us to purchase a new or refurbished iPhone for the subsidized price if we agree to re-up our contract to 2 years from the sales date (original contract date was the launch date of the 3G in July 2008). Anybody in a similar situation had success in doing this?
Since you are already in a contract and not eligible for upgrade, you would need to go with the less subsidized price of $399/$499.
3: What sort of action can be taken against this electronic shop that has our money, the broken phone, and has ceased all contact? A small claims suit would be difficult given the geographical difference. Is what they have done a crime, per se, and if so, could a police report be made?
You could file a small claims action. You could also file a complaint with the BBB and/or the State AG office where you sent the phone.

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