Phone repair gone bad

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I sent a mobile phone with a cracked screen to MyTrendyPhone.co.uk for a repair. Cost about £90 + courier

Got it back several weeks later and after a week or so the screen started playing up with "ghost touches". I reset the phone which appeared to help for a day or so but then it returned, it was intermittent so got by for a couple of weeks but it got so bad it was unusable.

Sent it back, at my own expense, after a week or so they've got back denying my claim for them to rectify the problem with the new screen claiming it has "physical damage" and will be sending it back. They've not responded to my reply. There isn't likely to be any damage as the phone was extremely well wrapped in layers of bubblewrap, inside a stiff box etc.

What can I do? In total this has cost me c.£100.
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