Definatly report them as any fraud on your vehicle is a serious, serious offense if proven. After I was hung up on I would definatly call a corporate office as I believe Big Ray's is a pretty big outfit [[that is the right thing to do). Honestly though, now that I think about it a little more I probably would have went back and raise all sorts of heck [[I am not recommending people do this though). That is just stupid on their part as it literally takes a minute to change the filter and do the job right not taking into account the other problems you stated.
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