Some places are able to fix it for free (Like my friend)
I used some website. They fixed it but it cost like $10 and it took about 3 weeks.
And no I dont this microsoft can refund your game because it warns you (if you have the new Xbox) and they do not own the games
Edit: Dont listen to Elecro, get someone who knows what they're doing to fix it. (Toothpaste will probably NOT work)