Let me stated my opinion on this case..

If I no mistaken, the terms "if they hold a console for more than 6 months they have the right to dispose it" only applied to console that they are repair and return ady but tat owner did not pick up it from the store.. for more than 6 months. But in your case as I read its u got come back to ask them and they say not ready yet tats why they not returned to u.. .

Anyway, if they using tat term and conditions, pls ask them to check their records where is proof that they dispoed your PSP... can't simply say "oh sorry dispose liao" then no nd responsible... even if they disposed any console, sure hv the records of it been disposed.. to protect themselv legally.. might worth to check this out if can..

At the end of the day i think best solution is report to NCCC via tat website link given by the other forumer. If the shop continue not corperate

This thread reminds me of my xbox as well. xbox had died on me last time, bought from a reputable shop in LYN as well. As system was modded, warranty was not valid anymore so I read about playtime and they said bring in the box for them to take a look.

give receipt, called every 2 weeks, said not fixed yet. After 6 months, told us can't be fixed and when i went to collect the unit for scrap to  sell in LYN, they have already disposed it outwith calling. This is very unethical. It's the workers i suspect. might be repairing it behind the bosses back and sold to other members and told us it's disposed after playing the dragging game.