Oil Filter Collapse
 

I took my 2009 MINI Cooper S to a lube place and after about 1000KM, the red oil light appeared on my dash board.

To cut down on the story, the issue was because the oil filter had collapsed. The reprocussions of the oil filter collapsing had caused the oil pump to fail and now my engine needs to be rebuilt even though I only have 68,000KM on it.

MINI says that this is because of the oil place that I took it to. On the other hand, the oil shop is saying that it is not their fault and this wouldn't cause any of these problems. The oil company says "It's not collapsed, it's melted" which means that it's an issue with the engine that caused the filter to fail.

The problem is that I cannot afford the $8,000-$10,000 it will take to rebuild my engine.

What's your guys take on this?