Faulty phone and incomplete staff

I bought a phone and within a week it was faulty and I look it for repairs at pep in Pimville Square. They had no problem booking it in. Two weeks without hearing from them I took it upon himself to call them and find out about the phone. To my surprise the manager told me it had physical damage and it didn't have any damages when brought in. I once again took it upon myself to call the technician and was very shocked when he told me that the phone was returned to the store twice cause the phone had a password and they couldn't do anything without a password. The Pep manager had the audacity to lie and was completely *********** she decided to tell me it's physical damage. How many customers had been turned away cause of the "physical damage"? I am most annoyed that I wasted my time trying to solve this problem and being **** to, I want this problem solved and the Pep to outline how to intend to rectify this matter cause it's been almost 2months my phone has been with the store.