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Regrettably, if they have you on tape doing what you have been accused of doing, you do not have any chance of prevailing in Court. Also, by still having the phone in question in your possession, that strengthens their case that you stole the phone. So, you need to find a way to pay them what they are alleging that you owe. However, if you are unable to pay, then they may follow-up with their threat of reporting the matter to the Police and you may be arrested and charged with theft. If convicted, that would go on your record.