FNB Smart Device Penalty Fee is ********

I took out and FNB smart device for my wife (Apple MacBook Pro) on a 24 month deal. FNB markets these offers as interest free contracts but they essentially present an inflated market price and divide a "discounted device amount" by 24 to create the "interest free" monthly payments. I have attached an image. She owes R1,977.00 on the device (R659 x 3 months payments), yet if she was to settle the amount early she would be charged an additional fee of R3,164 (Retail Price - Discounted Device Price), so if she actually wanted to settle the R1,977.00 she owes, she must pay R5,141. That just seems wrong (Not to mention in contravention of a number of consumer laws). At no point during the transaction to agree to contract, the does FNB mention what the early settlement fee is/will be.

As per FNB's response below they use the phrase "Early Cancellation" when on their site it is "Early Settlement". It might just be semantics but "Early Cancellation" seems incorrect, she will fulfill her outstanding amount owed in full.

As per the NCR: "No penalty fee is payable for the early settlement of a small or intermediate agreement. If the consumer wants to terminate a large credit agreement i.e. a credit agreement which is greater than R250 000 (two hundred and fifty thousand rand) or a mortgage agreement, the settlement amount may include an early settlement charge which is not allowed to be more than three months interest, and less if the consumer provides notice of his / her intention to settle early. In the case of a notice given by the consumer it will reduce the three month interest early settlement charge by the notice period." Do FNB's Terms and Conditions overrule the NCR? I think most definitely not!