I don't see anything illegal about it. It is someone charging a fee to repair or improve something you own. The illegality would come into play if I then decided to charge admission to the general public to view it. If I own a vinyl record that is scratched, and send it off to someone who has the capability to wipe it clean and replace the content, it is still and has always been my vinyl record. And no, there is nothing wrong with charging a fee for restoring someone's property.
My father, a practicing attorney in Ohio, and my brother-in-law, a practicing attorney in New Jersey, both agree. Now, to repair material and attempt to re-sell as brand-new would be an issue. But to repair something and charge a fee to do so is not.