Application rejected on the ground of residence card not sent although this was sent and lost by Home Office

[Mariab75]

I’m a EU citizen who’s resided in the UK for the past 20 years. Because of the uncertainties of Brexit I’ve decided to apply for British citizenship at the beginning of this year.
I’ve sent all documents requested and also provided some extra things such as 1 payslip per each of the past 10 years and apart from sending my residence card I also sent the letter from the Home Office which accompanied it which certified my permanent residence.
After 1 month I received a letter from the Home Office which listed the evidences I had submitted (this clearly stated the Home Office letter but not the residence card which I presumed was included under the title of “evidence”).
I’ve now received my documents back minus my residence card and the Home Office letter with a rejection letter declaring that I couldn’t obtain citizenship because I hadn’t sent in any proof of permanent residence???
To say I’m furious, upset and appalled by the all situation is an understatement.
The Home Office has lost some of my documents, declared that they had never received them and kept £1202 for the pleasure!! I can appeal to the decision but that’s an extra £351 that I should be paying!!
Why should I pay any extra for their mistakes and the stress that they are causing me?
I’ve tried to phone them but they don’t take phone calls and I can’t get in touch through emails either.
I’ve sent them a letter explaining what has happened and I’ve included a copy of their previous letter which clearly stated that the Home Office letter was one of the evidences presented.
What else can I do? I’m more than a grand out of pocket and I’m on maternity leave so money is tight. I’m so upset and frustrated, it’s just so unfair that the Home Office can play with people’s lives and finance in this way!!

[vinny]

Wait for a certain time for their response.
If they respond unsatisfactory or there is no response, then complain.

[Mariab75]

Thanks Vinny

[rely1458]

This is a case where the NCS would have been useful as they'd give your documents back and send copies to the Home Office. If anything were lost, you'd still have the originals to show.