I sent in an iPhone 4 which had been kept in a full case with screen protectors since new. No second hand phone could have been in better condition.
I took loads of photos before I sent the item (with a professional DSLR) and double wrapped the phone in bubble wrap as a precaution against damage caused at their end.
Their automated response was to take 10% off for "visbile cosmetic damage".
After testing in a lab, they claim to have found a 'few light scratches' which could not have been photgraphed, "no matter how good the camera".
The injustice of this is that we all choose which company to use with a price comparison tool. If you can't trust the price it spits out, we are all at risk of being conned!
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