Cam follower worn, is my mechanic taking me for a ride??

[afternoondelite]

So I bought my mk5 gti last april at 95000kms (just serviced) and last month took it for my first service (110000kms). Full service history at VW dealers and VW specialists (so the logbook says). Purchased from a VW dealer.
I was well aware of the known cam follower issues with these cars before buying but never bothered to check mine.
I will also note I didn't notice any issues with the car before the service, seemed to be all running normally.
Mechanic noticed a rattle at idle, found the cam follower completely worn through, which had subsequently badly damaged the camshaft, fuel pump and put bits of metal all through my engine.
SOO they told me I need a new engine, shit, I sourced one with only 26000kms, $2800, and dropped it off with them last week, he even noted how good condition it looks.
Then I get a phonecall Friday insisting I do the timing belt+pulleys now as the new engine has spent some time in the weather and is a bit corroded, another $700. Whatever, done. Plus $2k for the swap itself.
I've been reading various mk5 gti forums like this since I've owned it and have never read of anyone having to replace their engine due to a worn cam follower.
I chose this mechanic based off good reviews from other users on similar forums.
That and they just said they were going to scrap my old engine without even asking me when surely there are a few parts that can be salvaged, ie the turbo.
So all in all, the bill with the engine swap, service, and DSG service is gonna be a bit over the $6k mark (AUD), half what the car is worth!!
Have I been royally screwed here??

edit: here is a photo of the cam follower for some perspective:
https://www.flickr.com/gp/photosfromlozza/i3ph80

 

[Rolando_TX]

You definitely don't needed a new engine.
New HPFP, new cam, new cam follower and done.
But since you already replaced the engine, I would definitely ask for the old engine back, everything should be good on the old engine except for the things mentioned.

 

[taaj]

as rolando mentioned
not a new engine for sure... new cam, cam follower, and as for a HPFP better off getting an upgraded install kit than buying a new OEM HPFP
you may want to consider checking your cam chain and tensioner

 

[afternoondelite]

Thanks for the responses fellas, definitely seemed too suss, I sound like the most unlucky gti owner on these forums, will definitely not be recommending this place, what a screw around

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[Joshohol]

depending on how much shit got through the the motor i wouldve replaced mine too

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[DBSpectre]

I had this issue last year but with noticeable damage. The worn cam follower caused a lean condition which snowballed to the end result of burning a hole through an intake valve causing an open compression. The cam follower and HPFP failed within the 125k mi extended warranty so those were going to be comped but they also had to replace the head which was not. After a little negotiation with VW corporate, explaining that I would have not needed a new head if the other components didn't fail, they did the entire repair under warranty for free.

If you got it done at a vw dealership and the failure happened within the extended warranty period I would definitely see if they will re-imburse you for the job. If it wasn't done at a VW dealership and/or outside of the warranty period I guess you are SOL.

I agree that a new engine was probably unnecessary and could have been remedied with a flush but whats done is done.