FNB Smart device early settlement fee scam

[wandos]

I have a Samsung Galaxy S5 that I bought through FNB end July 2014. At that point in time the price offered by FNB (R9500) was the same as the online retailers I was looking at (takelaot, Vodacom, etc) and thought it a pretty sweet deal to get the device for the same price but having to pay over 24 months. The agreement was even advertised as zero interest.

I now want to switch banks because the "private" banking service is dreadful and the benefits being provided slashed and upon trying to settle my phone agreement outstanding balance, was informed that a settlement fee of R1920 was applicable on my balance, as a difference between the "retail value" at time of purchase and the price at which I got it.

This amount was not quoted to me and the "retail value" is obviously an inflated price, as the S5 did not cost R11500 at this time last year!

What stands me to do?

 

[CrazyBob]

Huh? Don't you still have 12 more months to go though if you only bought it 1 year ago? Shouldn't that settlement price be like half the value of the phone?

 

[biometrics]

Wat?

 

[Hamish McPanji]

So....R1920 + outstanding payments?

 

[Fudzy]

Assuming you had another 12 months of payment, shouldn't they have charged you R4,750? (R9500 / 24 * 12)

 

[mak2000]

Go back to your contract and see if the retail price was mentioned. If it was then you have no choice.
Also, for most electronics goods there is a retail price published by the manufacturer/ distributor but retailers always sell it for less. It's a marketing gimmick, especially with the online retailers.
Sorry to say this but, Don't see how you can get out of it.

 

[SeRpEnT]

http://mybroadband.co.za/news/smartphones/99756-samsung-galaxy-s5-fnb-price-revealed.html

R399 x 24 = R9 576.
So did you pay R399 per month?

There should be an option to settle the account on FNB online banking. See if the amount on there agrees with their settlement quote?

 

[Rocket-Boy]

Its in the original terms and conditions and has been since the very first deal they offered on the ipad2.
They offer you a "discount" price on the device and no interest. If you want to settle early then they charge you the difference in what the supposed normal price was plus your outstanding payments.

 

[Fudzy]

http://mybroadband.co.za/news/smartphones/99756-samsung-galaxy-s5-fnb-price-revealed.html

R399 x 24 = R9 576.
So did you pay R399 per month?

There should be an option to settle the account on FNB online banking. See if the amount on there agrees with their settlement quote?

There is :

Device Description - IS3537- TS DELL INSPIRON I5 TO
Retail Price - R13,968.00
Discounted Device Price - R11,640.00
Amount Outstanding - R-4,850.00
Monthly Device Payment - R-485.00
Arrears Amount - R0.00
Payment Due Day - 25
Last Instalment Date - 25 May 2016
Contract Period - 24 Months
Remaining Loan Term - 10 Months
Early Settlement Balance - R7,178.00

Seems that is the case. Though why anyone would spend R14k on this POS, I don't know. School fees currently being paid

I don't see myself needing to cancel early though as I'm quite happy with the bank. eBucks ftw!

 

[PsYTraNc3]

Always read your contract
Not very nice to accuse FNB or running a scam when it is stated in there that the price is discounted if taken on contract.

Definitively saw it in mine when I got my xbox from them.

I got an S5 from Vodacom with an insurance claim in December 2014.
I had to pay in a bit extra for better phone value (Had an S4 insured and broke) and the value of the S5 then was R10500 so it could definitely have been R11500 in June.

 

[Dolby]

Oh yea - just checked the retail on my Xbox One I ordered and inflated by 40% as well

Retail Price R10,246.00

Though, I knew what I was getting into at the start and new I wouldn't be settling early :/

I think the only decent deals are on Apple products

 

[BrrIan]

I was wondering how they get around most of the products they offer being more expensive. Last time I looked that include iPhones. The settlement amount would be less than the cost over 24 months if they used real retail prices. So they inflate the retail price too.

 

[Fudzy]

Oh yea - just checked the retail on my Xbox One I ordered and inflated by 40% as well

Retail Price R10,246.00

Though, I knew what I was getting into at the start and new I wouldn't be settling early :/

I think the only decent deals are on Apple products

That's on the high side of RRP.

 

[bwana]

I wanted to pay my last payment a few days early so I could get a new phone through them and they wanted to charge me a massive early settlement fee.

And that's when I decided I wouldn't be using that service again…

 

[Fudzy]

Where in the T&Cs does it mention the over inflated RRP?

 

[undesign]

Bit quick on the "scam" there.