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Have to agree here, life sucks but if you didn't report the phone as stolen/report the loss as soon as possible then they aren't going to cover you because someone made the calls and it wasn't missing at the time so they get their money either way. If they did allow this the number of people who would "lose" their phones if they had a high bill would be silly... unfortunately my ex-flatmate tried to pull something similar (he was mugged, ran up a huge bill then tried to report the phone lost in the past, they said similar to yours but he was scamming).
I hate phone companies, I sent Vodafone a cancellation letter, they didn't recieve it then billed me for an extra 2 months... the contract doesn't say they have to recieve the cancellation merely that I have to mail it.
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