Verizon please reverse charges !

I & my husband have been loyal verizon customer for many years ! I only had My IPhone5 for few month & all a studden it stop working . No damage what so ever!!! I took it to this verizon store. One of verizon agent took my phone to his office and came back after few minutes and said no problem you will get a replacement new iPhone5 in 1 week. And I paid the shipping fee at store. After few days, I recieved "like new"  IPhone5 & returned the original Iphone and all was good . Then I got an outrageous email from Verizon . first I thought it is scam email. But it was for real! Verizon email says that I HAD TO PAY $299.00 and my original device will not be returned!!!!
They claim the damage to my original device is not covered under the manufacturer's warranty. This is absurd , totally unacceptable!
I called Verizon customer service many times , finally after getting many conflicting responses  I was told to go the store where I get my phone evaluated throughly .this week  I visited the Verizon store  in Fontana . The female Verizon employee ( I think her name was Melissa ) gave us bad attitude  from very beginning and really bad customer service . Respectfully , I requested to see her manager . She  continue to argue by saying " the manager won't tell you any different answer" . I said if a customer requested manager you need to get your manager. she roll her eyes , got us her manager. At one point, she made a gesture that my complaint is non sense " bla bla " sign with her finger while gossiping with the othe agent. I don't know what her problem atleast respect your manager. The manager is new , nice guy but unable to,solve the problem. My argument was simple.. I brought my phone here, you guys check it out, & was told I will get new phone . NOW Verizon changed their mind ... you are telling me I have to pay 299.00 + TAX ( no shame , tax for what ? Even Manager agrees I shouldn't be taxed) + shipping fee? . This is highway robbery!! And Verizon refuse to return my original device . Basically , basically verizon is telling me I HAVE NO RIGHTS!
What ever the problem with my phone, i should be given a chance to decide as a customer!! If  there is damage to my phone AND it is not covered by the warranty ... Then I should be able to decide whether to pay 299 or get my phone back !! That's is my right !! Why doese Verizon to get decide for me without my consent !! This is illegal !! I hope  Verizon reverse their ridiculous charges and apologize for this experience!
http://www.yelp.com/writeareview/EO-TLMI8Lfz2LhMkndaoAQ/remove?return_url=%2Fnot_recommended_reviews%2Fpreview%3Fbiz_id%3DdPfeLHoMPVQ6tO6WCtCrGQ 

You are not talking to iTunes Support here, most of us on here are fellow users. You can contact iTunes Support via this page : http://www.apple.com/support/itunes/contact/ - click on Contact iTunes Store Support on the right-hand side of the page, then Purchases, Billing & Redemption

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