Toyota Repair: seized engine/sludge 02 camry, 2002 toyota camry, customer service hotline

Question
I have a 2002 toyota camry, the engine seized at 97,000 miles. I had it towed to the dealership, told it would most likely be under the extra care warranty. They opened the engine and found sludge. I bought the car used from this dealership @ 30,000 miles and it previosly had been a rental car. They say they are not going to cover it; because the warranty does not cover sludge. i fould a program call" oil gel customer support program", but my car is 1 year too late for that program. I have provided the dealership with all maintenance history. I always changed my oil every 4-6,000 miles. This sludge can't be because of me. The dealership is refusing to cover it, and says that i should sell them back the car and get a new one or just pay for the repair. By the way it  has taken them 2 weeks to finally tell me that this is not going to be covered. I have been in a rental car all this time, which I now have to pay for. I am so lost and have no other options. What do I do?, is there any loop holes I should know about? If you have any insight i would be very greatful.

~ lost

Answer
My suggestion would be to call the toyota customer service hotline. Youll find it on the last page of the owners manual.
Dont hesitate to tell them refusal of repairs may prompt you to buy another product, if thats how you feel.

They know there is a problem. You just need to get beyond the dealer level and get to a distict service manager. The hotline call should do the trick.
Keep me posted.
Mike