Cellphone contract penalty unknown

I took a phone contract with Intellicell, It was the worst decision ever, I gave them all the documents as requested. On the day of the device delivery I informed the delivery guy as I informed the consultant that I dont get paid in the main account but another account in the same card. The delivery guy swiped by card for AEDO debit and said I mustn't worry he will come back to deliver my device after the debit order finds fund that was the 28th of June. On the 8 of July I contacted intillicell that I haven't received the device. I was told Im getting no device as the R429 debit order is a penalty. Penalty for What I dont know.