Maybe if you could have paid by credit card as suggested by Joe's post from the Bahrain section of the UKBA site then as a consumer you may have stood a chance of getting a refund through your credit card company. But as things stand it will be down to you to request a refund. I agree, I do not think they looked at it properly and have pocketed the £800. In my opinion that is fraudulent. The application has not been processed as such.