Phone Recyclers - phonerecyclers.co.uk Review

After choosing free tracked postage, I wasn't supplied with the label to do so. So I sent my handset in costing £3. When my phone arrived it was devalued. I email the company stating I wanted both my phone and £3 back. A week passed and no phone or reply.
So I phoned them to get an extremely rude man. He told me he wouldn't cover the postage costs as it was 'my own stupid fault for not ringing before I sent the phone' asking for a manager I was put on hold. 10 minutes later no manager but an explanation about my handset.
I told him although he's upped the price by £2 I still wasn't happy and wanted it back,only to be told my handset had been misplaced. I am fuming. I told him if my phone isn't in my hands on Monday morning, I will be informing the police of theft, ringing trading standards and if needs be taking the company to small claims court.
I am so stupid for not seeing this before. Disgusting customer service. Stay away at all costs.