My Iphone Won't Erase Contacts and Saves My Deleted Messages?

I have a white 64gb Iphone 4S. I don't have a cover on it and I've dropped it several, several times. I've checked for water damage but the indicators haven't turned.

Anyway, when I add a contact into my iphone, then delete it, the person's name will disappear from my address book. However, when I go to create a new text message and I type the first letter of the person I just deleted, their name and phone number appear!

Example: I delete the contact 'John'. I create a new text and type the letter 'J' and John's name and number appear. I went to Apple and the Genius dude said it's normal then left.

It isn't normal because there are people I delete in my address book that don't appear when I create a text message. It seems to be whimsical which numbers are saved and those that are deleted.
Help!

Also, when I do a SPOTLIGHT search old emails and texts messages appear when I search for the something. I'll type 'Hey' in the SPOTLIGHT search and random texts with 'hey' appearing in them show up. But only random texts.

Wow… I understand. Definaltely something buggy in the software. I would try a itunes restoral (factory reset)… If the issue continues, get a new iphone

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