a new phone that cannot be repaired

I purchased or have a contract on an Iphone 4 at the George vodacom store in the Garden Route Mall not even two months ago. on Sunday the 07/06/2015 I took the device to the store where I had purchased it from. The icloud address on the device i had forgotten the password to. I took the phone in to be wiped and was told after a 7min wait on the line that the technician cannot help me the phone cant be fixed and that I needed to take it to another shop to be repaired. I mean what is the purpose of that technician or the warranty in the device if this is the type of service that you are referred to? the worst part of the story is I had to contact the store myself this am just to be told this.