What is happening with Microsoft

Microsoft is moving away from Microsoft Points, and is starting to just use cash amounts (this way you don't have leftover points) and you can just pay for what you need.

It is a shame you didnt take the option to email yourself a copy of the chat log so you could use it to show that you were offered the free repair.

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Other then that, its not so hard for the chat log not to be recorded for whatever reason the chat got interrupted. But considering its out of warranty its not hard to see why others are not accepting that you were offered a free repair as there is no logical
reason why you would have been offered one

Sounds like you are in the beta program.In which case you will need to post here

forums.xbox.com/.../default.aspx

hi sorry you have had that problem there is more info on the Microsoft account transition to local currency.

heres more info hope this helps -
support.xbox.com/.../microsoft-points-retire-faq unfortunately it does not answer the question about 1600 ms points

So speaking with my IT support hat on, if they've got logs of your conversations, then surely the burden of proof is upon you to prove they are incomplete?

Back in my old 1st line support days we'd get users and customers trying to pull fast ones
all the time. Got people trying to pretend to be other people to get access to personal information. Others would simply refuse to talk to me and insist on trying to get directly to the manager when our manager at the time had just started
his job having previously gone through the management course at McDonalds and his IT experience was fixing his mums computer. He didn't last long!

It's not that second support person is accusing you of lying, but it's simply a case that they are protecting their livlihood. Don't take it personally. If anything, blame first Support person for not keeping logs in the system.