DVC Tranished Image

Discussion in 'Purchasing DVC' started by thedon3, Apr 17, 2012.

  1. thedon3

    thedon3 Mouseketeer

    Joined:
    Jun 6, 2004
    Messages:
    169
    I have been a DVC member since 2000. I have over 700 points and have faithfully paid down my loans with no issues. This past Jan., I was late with my payments on my remianing contracts due to issues beyond my control. That being said, I got all caught up in Feb. I wanted to take advantage of the new incentatives 100 points get 120 points - made it all the way until the deal was stopped by the DVC credit, beacsue I was not current the past 12 months. I have been currrent the past 12 years excpet for 1 month. They denied my points unless I gave them full acess into my finances. I was to say the least disgusted and angry. It's amazing how they are slowley losing the human side. I called and wrote letters and all I got was we will bring it up to the higher ups. I wanted the extra points to give them to my family. They were very cold to me in my phone calls and was disapponted in that treatment, but, it is what it is
    So, I remain in Disney prison, until next Feb, when my sentence is up.
     
  2. Avatar

    DIS Sponsor The Official Ticket Center is Orlando’s #1 discount attraction ticket agency, selling millions of Walt Disney tickets around the world.



    to hide this adverts.
  3. Chuck S

    Chuck S DVC Boards Co-Moderator Moderator

    Joined:
    Feb 6, 2000
    Messages:
    25,316
    Given the current state of the economy, and the fact that Disney is handling their own credit and not bundling and selling off loans as they used to do, I don't find this surprising. Disney has historically been fairly easy to qualify loans, but at a pretty high interest rate. But they would surely look at past performance on their own loans, to do otherwise would seem irresponsible as Disney has to answer to stockholders.
     
  4. arthur06

    arthur06 DDC #689

    Joined:
    Oct 26, 2008
    Messages:
    2,642
    Sorry to hear that.

    Hope that things get adjusted. I am not sure on the policy, but our bank operates the same way. We bought a van a couple of years ago, traded in 2 vehicles worth about $12,000 in trade on a $21,000 purchase. Went back about 6 months later to ask about a loan, they said that they would have to put in on the van loan, with the van as collateral, and since we only mad 5/6 payments, they could only do about $2,000 since "that was all the equity we had in the van".

    My point being, if you own most of the 700 points outright, and wanted to buy 100 more, if you default, wouldn't you be jeopardizing all 800 now?
     
  5. OldGrizzly57

    OldGrizzly57 Grumpy Old Bear!

    Joined:
    Apr 1, 2011
    Messages:
    227
    If your credit is good then there are lots better places to borrow money than DVC credit. If your credit is not good well... you know the rest of that one... :rolleyes:

    Griz
     
  6. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

    Joined:
    Aug 19, 1999
    Messages:
    32,752
    I'd have to side with the lender on this one but I also think it's a poor choice to finance such a luxury purchase. My suggestions is to make your current points work by borrowing ahead (it'd take several years before you'd be out of points using 800 a year) and in the interim save up the money. That also give you the option of resale though there is now one direct loan option for resale as well.
     
  7. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

    Joined:
    Dec 11, 2006
    Messages:
    20,579
    Disney is a business. They can be friendly but they are not your friend.

    :earsboy: Bill

     
  8. k3chantal

    k3chantal DIS Veteran

    Joined:
    Sep 7, 2011
    Messages:
    1,155
    It bothers me that your title is 'DVC Tarnished Image'.

    I really have to side with Disney. DVC needs to make good financial choices or we all pay more. They are actually trying to keep their image untarnished.

    Whatever the reason you were late one month, it makes them wary. I respect them that they are protecting all of us by having a high standard to give financing out.
     
  9. Lynne M

    Lynne M Moderator Moderator

    Joined:
    Nov 4, 2001
    Messages:
    9,403
    Disney is protecting themselves. Like all lenders, they've tightened up their requirements for extending credit, and anything that implies risk to them, such as a history of falling behind on payments, means they're not going to make the loan. It's not personal, and it doesn't mean that Disney's reputation is tarnished. They're just doing what they need to do to protect their investments.
     
  10. thedon3

    thedon3 Mouseketeer

    Joined:
    Jun 6, 2004
    Messages:
    169
    1) Thank You for your responses
    2) I have excellent credit but, it is such a small amount it helps with tax deductions
    3) So according to some of you, if you make a mistake in 12 years, you forever banished
    4) DVC is a business, that is correct, they must protect there stock holders and the members. Excellent statement
    5) I would not consider the purchase of a DVC Points as luxury, luxury would be owning at the Ritz.
    6) I will not change my mind about DVC Being Tarnished - that my opinion
    7) Great discussion
    Thanks
    Bobby
     
  11. fmer55

    fmer55 DIS Veteran

    Joined:
    Mar 14, 2012
    Messages:
    523
    This is something that drives me crazy lately. Money is so unbelievably cheap right now i don't know how anyone would pay 11% for a luxury purchase such as DVC. I am not saying you should have the money to buy outright but geez, if you want to own DVC i think you should be able to find financing through your own, bank, credit union, pension loan...somewhere, anywhere that is lower than 11%......End of financial rant!:stir:
     
  12. fmer55

    fmer55 DIS Veteran

    Joined:
    Mar 14, 2012
    Messages:
    523
    I would like to respond to each if i may

    1. your welcome;)
    2. do you own a home? why not a small heloc or home equity loan, that is surely a write off.:teacher:
    3. you did not make a mistake in 12 years, you made 1 in 12 months and you are only banished until next feb:sad:
    4. precisely
    5. part of the luxury is the simple ability to get access to rooms noone else can....and have you stayed in a value lately?:p
     
  13. fmer55

    fmer55 DIS Veteran

    Joined:
    Mar 14, 2012
    Messages:
    523
    response con't:

    6) opinions are like..................:rolleyes:
    7) agreed

    and one last question....since you are so down with disney are you in the mood to rent 700 points real cheap and really show disney how mad you are, i would be glad to take them off your hands:lmao:
     
  14. DMKEDM

    DMKEDM DIS Veteran

    Joined:
    Jul 6, 2006
    Messages:
    1,285
    Been biting my tongue (typing fingers!) for 24 hours now on this...and now I just can't resist:

    Having to wait one year before being considered under regular credit practices, or alternatively providing more-than-usual financial info during this year during which your missed payment is an issue, does not equate to being "banished forever."

    Are you ok with the people who owe you money (your employer, for example, or your clients if you're self-employed) skipping paying you one month if they catch up later and paid you regularly in the past?

    I so don't think Disney is wrong on this; in fact, I'd go the other direction--I think Disney would be wrong (and its image tarnished as a result) if they didn't adjust their credit practices for people who pay late--

    Still, I sympathize w/your situation. We've all had months where things financial go awry and we have to scramble to cope...you are to be commended for catching up as quickly as you did. And while you may miss out--if it doesn't last til next February--on the promotion that gives 120 points for the price of 100, there will be other promotions (some may even be better).

    Or, perhaps as another poster mentioned, you can get alternative financing (as I understand it, the skipped DVC payment won't show up on your credit rating) and still do the 120-for-100 promotion?

    But the bottom line is you owe what you owe--and reasons for not meeting that obligation don't change the fact that you owe it and you didn't pay it. You didn't promise to repay "when you can," or "if circumstances permit"...you promised to repay, period.

    Sometimes life throws curve balls that do result in lenders being sympathetic and waiving "penalties" for late or missed payments (e.g., the fed'l gov't routinely extends tax payment deadlines if natural disasters hit at a time when financial disruption is widespread and inevitable--e.g., Hurricane Katrina, or the disaster of 9/11). But your specific "circumstances beyond your control" apparently do not qualify in Disney's corporate mind...

    We might be more sympathetic/less judgmental if we knew what those circumstances were (altho it's none of our business!)...but generally, sickness or a house fire or job losses or things of that nature will get you some forgiveness/more time to repay (as appears to have been the case for you), but not more/new credit until you rebuild an on-time payment history.

    Anyway, good luck to you...
     
  15. Chuck S

    Chuck S DVC Boards Co-Moderator Moderator

    Joined:
    Feb 6, 2000
    Messages:
    25,316
    It is just the way financing works today. A friend of mine needed a new car. He is like me, he keeps his cars until they are really dead. His last car was a 1997 with 250K miles. I spent the day car shopping for used cars with him.

    He doesn't owe any money, has no credit cards. Because it was 5 years since he paid off his last car, he had "no credit" and only one place, our credit union, would finance him at 12.5%. He was able to get his dad to cosign and drop the interest to 2.5%. Credit must be well groomed and current to be worth anything. Even not owing anything is bad.
     
  16. cvjw

    cvjw DIS Veteran

    Joined:
    Dec 22, 2005
    Messages:
    3,428
    I am happy to hear that Disney is scrutinizing potential borrowers before lending them money. I think that one of the reasons that resale prices have dropped so low is that too many people were allowed to buy into DVC who really couldn't afford it. When things turned south for them, they defaulted on their payments, sticking Disney with their contracts and/or flooding the resale market with too many contracts, which made the prices drop. When DVC prices drop, it hurts all of us, not just you for being denied the loan.
     
  17. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

    Joined:
    Feb 4, 2002
    Messages:
    13,407
    That's a bit of a stretch, don't you think?

    According to your own post this is a situation which will resolve itself in a year. AND they offered you an alternative means to get approved now (provide additional financial records.) You simply chose not to accept their terms.

    The lending process is bereft of emotion. Lenders can't afford to consider your friendship or history with the institution. They need to evaluate your financial health NOW.

    The fact that you are unwilling to provide additional financial records probably solidifies the decision on their part. That alone is a red flag.

    Luxury vs. necessity. A luxury is anything not essential to your everyday life. Food, shelter and clothing are necessities. iPods, TVs, timeshares and vacations are luxuries, regardless of the cost. A $2 pack of gum is a luxury purchase...but you don't go into debt to buy a pack of gum.

    Generally speaking it is not wise to go into debt for any luxury purchase. Consumers often justify the debt as long as they can handle the payments. If you CAN handle the payments, save a little longer and just pay cash.

    If you finance $12,000 with DVC and take the full 10 years to pay it off, you will give them nearly $8,000 worth of interest! That's additional money right out of your pocket. Only a fraction of it will be recouped via a tax write off.

    Pay it off in half that time and you'll still spend $4k on interest.

    DVC is doing you a favor by denying the loan. Find another lender or just save and pay cash.
     
  18. AllieV

    AllieV DIS Veteran

    Joined:
    Jul 30, 2007
    Messages:
    913
    Disney prison can't be too bad -- you've got pirates and princesses and Stitch to keep you company. I'm still stuck on the 700 points -- 700 points???? And you live in NY, so you have to fly there. Do you just stay for the entire summer?

    But on a sympathetic note, I was a little surprised to hear that's their policy. I'd always read that Disney will give someone a loan so long as they can verify a pulse. They must've had some very bad experiences. Their head DVC person already got fired, so the remaining execs are covering their butts, I guess.

    When the HARP refinancing recently expanded their reach, only a few qualifiers remained and one of those was that there are no late payments in the last 12 months. So maybe that's a new standard of lending in general.
     
  19. AllieV

    AllieV DIS Veteran

    Joined:
    Jul 30, 2007
    Messages:
    913
    p.s. could you put the loan in your spouse's name (if there is one)? This would accomplish the same goal and keep your name out of it. You can do an annual transfer of points.
     
  20. Lynne M

    Lynne M Moderator Moderator

    Joined:
    Nov 4, 2001
    Messages:
    9,403
    No, but you did have the option to give them additional proof that your finances were OK, and you chose not to. Believe me, I understand, I'm in the middle of a mortgage approval myself. I know what a pain it is to dig up the records they want, and they can ask for some really ridiculous stuff. But getting insulted or taking it personally isn't going to get you the loan that you want.

    The day I sat down with my realtor to put together my offer, she said "I have one piece of advice for you about the mortgage.....give them whatever pieces of paper they want. If you argue with them, you're only going to delay your own home purchase, or not get the mortgage at all. "

    If there ever was a time when a bank would lend you money based on your word and a handshake, that time is long gone. I really didn't mind giving them the documents they wanted. The way I looked at it is, if I want someone to lend me a lot of money, they have a right to ask for proof that I can pay them back.
     
  21. OrangeCountyCommuter

    OrangeCountyCommuter DIS Veteran

    Joined:
    Jul 11, 2010
    Messages:
    5,478
    |

    Sorry, but I don't see DVC's image as "tarnished"

    I own stock in Disney and they have a duty to me not to incur bad debts that can't be collected.



    In truth they could do much more to you when you were late on that first payment and some creditors do.. Miss a credit card payment and watch what happens...

    The fact that you refused thier reasonable request to prove it was a "unique" occurance by providing financial data when it's been less then 6 months since your late payment seems to raise a red flag to me...
     

Share This Page