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Re: Advice if you please
The insurance is with the Bank, not Carphone Warehouse. Unless CW is acting on explicit instructions from the Bank, which may have clauses in your insurance about how it handles replacement of stolen goods, CW has absolutely no right whatsoever to tell you which handset you are allowed to have. I think you suspect rightly, they are trying to fob you off with a less popular model. What is possible, I suppose, is that the Bank has negotiated a corporate discount with CW in exchange for placing all its stolen/replacement business with them. If this is so, they will get more money selling the handset to a 'normal' customer than by giving it to you.
Persist. I don't think they have a leg to stand on.
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