Extortionate price of fixing an Olympus u700 compact camera

Just had a nasty surprise about my Olympus µ700 compact camera I bought 3 years ago from Pixmania and cost me about** £164**. Last year it started to bleach/overexpose all outdoor photos. Defaulting to factory settings did not work. I finally called the Olympus UK support line this morning and they told me that for that model they charge **£90.77!!! **to repair any kind of fault. Does not make any sense at all.