I dropped my iPhone 3G 8gb so it had a cracked screen. I sent it away and it came back with a crack on the back and the screen hadn't been fixed properly, as the seal was sticking out. So I called up to get it sent away again, this time the screen hasn't been touched and they exchanged the back cover for a 16gb. It was all scratched and rough, like it had been scraped on concrete and there was a chip on the silver strip around the side.
THEN I call up for 3rd time and I'm promised a new one. I get a call saying it's now discounted and they've offered me a non iPhone alternative or £240 which won't cover me for a new iPhone. I'm currently in dispute with them giving me £400 or sending me a iPhone 3GS 8gb. They've told me they don't have a complaints or appeals department or address and I have to wait for a call from their manager who will "tell me the same" as what they've said. I also asked if they could just repair it to an acceptable condition and now that's not possible.
I'm in complete shock over their service as the agent told me to use the money to pay off my contract then upgrade! Once this is over I will definitely be cancelling mine and my partners insurance and will be looking elsewhere.