If there's a handbook for customer service out there I'm sure rule #1 is: Never tell a customer that life isn't fair. I believe in turning the other cheek (to a human) and forgiving slights against me (by a human) but corporations aren't humans--they're legal entities that live on money. They're the aliens next door and there are good ones and bad ones--this service rep shows that he works for a bad one. On the other hand, a good company can take a situation like this and win a customer for life by treating you well.
Ditch them, return the phone or fight with them but I wouldn't send them a cent.
