virgin media

konkol

in march 2020 took out new contract, phone faulty, cancelled contract by phone, all ok, cancelled direct debit, VM would send out bag to return mobile, no bag arrived, phone again, got a gray bag with no returns detail or even a note to say who it from, I kept phoning for a bag, this went on for about three months,  then on a call to virgin media for a bag  the contact said I could keep the mobile.
so I did.  since then they have chased me for the full contract amount.  I have been passed to a debt collection agency, I can't get credit, I have been to CEDR to try a resolution, got an apology letter and £250 compensation, this was for the way my problem had been treated. Not to end the contract.  I have asked for the transcripts from Virgin media of the calls made, got an email to say they would send them, they did not sent them.  so I have no proof that I was told to keep the phone.  after more phone calls I arranged to return the mobile to end all of this and explained I had given it to my 9 yr old grand daughter to use as a camera, they returned the mobile to me, they won't accept it as it has a crack on the back unless I agree to pay £205 plus any other repair costs.  what can I do