Where is the subject and the verb of sentence ?

[nhatruc30]

Dear all.

I read a letter and saw one sentence in the letter that according to me it doesn't have a subject and a verb in front of saying that.
(I took it back to your branch in Tunbridge Wells, but they refused to exchange it, saying that I would have to return it to the branch where I bought it.)
If someone knows, please give me explanation.

Truc.

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This is a content of letter.
Dear Sir or Madam,
Last week I bought a pocket calculator at your branch in Cheltenham. It seemed to work in the shop. When I got home, I found that it was faulty. It adds and subtracts perfectly well, but it does not divide or multiply. I took it back to your branch in Tunbridge Wells, but they refused to exchange it, saying that I would have to return it to the branch where I bought it. This is impossible because I do not live in Cheltenham. Please find enclosed the calculator, together with the receipt, showing price and date of purchase, and the manufacturer's guarantee.

[5jj]

Participle constructions do not have a stated subject.
Driving into town, I saw a bad accident.
Who was driving into town? I was

...but they refused to exchange it, saying thatI would have to return it..
Who said that I would have to return it. They did.

[BobK]

In other words, the 'that' is a conjunction and not a pronoun.

(5jj's explanation seems better to me, but some people enjoy this naming-of-parts stuff!)

b