50% borrowing restriction

[MARCIAKAZ]

Hi folks! I have been anticipating a September 2022 trip. We like to do a big family trip every 3 or 4 years, and bank and borrow to have enough points for a GV for 8 or 9 nights. I am suddenly panicking because I realize the borrowing limit (max 50%) will kill our plans. What to do..cross my fingers and trust it will be fine by then? Rent out the points and use the cash for alternate accommodations?

 

[Marionnette]

Hi folks! I have been anticipating a September 2022 trip. We like to do a big family trip every 3 or 4 years, and bank and borrow to have enough points for a GV for 8 or 9 nights. I am suddenly panicking because I realize the borrowing limit (max 50%) will kill our plans. What to do..cross my fingers and trust it will be fine by then? Rent out the points and use the cash for alternate accommodations?

How soon would you need to book the alternate accommodations? I don't think it's worth worrying about right now since booking for September 2022 won't even happen until October at the earliest. So unless those alternate accommodations need to be booked ASAP, you might as well just chill for now. A lot can change in 5 months.

 

[DSLRuser]

I saw a post that the 50% rule has always been a thing...and is in everyone's contract...just it has never been enforced.

with the state of DVC and covid like Canada and European still not being able to use points. I would not expect the 50% rule to go away any time soon.

 

[Fangorn]

Given the number of points that were affected by covid, and DVCM trying to accommodate the best they can, I really don't see the 50% restriction going away until at least 2023, more likely 2024. I hope I'm wrong, though.

One thing you could do though is figure out how many days you could get using the points you'll have available to you for your trip. Will that be 6 or 7 nights instead of the planned 8 or 9? Whatever that number is, rent the points needed for the additional night or two, and book the rest using your points. Once the two reservations are made, call MS and have them link the two reservations so you won't have to change rooms.

You'll have two distinct reservations, with two different ADR windows, but you'll still get your trip in.

Steve

 

[BayGirl22]

Given the number of points that were affected by covid, and DVCM trying to accommodate the best they can, I really don't see the 50% restriction going away until at least 2023, more likely 2024. I hope I'm wrong, though.

One thing you could do though is figure out how many days you could get using the points you'll have available to you for your trip. Will that be 6 or 7 nights instead of the planned 8 or 9? Whatever that number is, rent the points needed for the additional night or two, and book the rest using your points. Once the two reservations are made, call MS and have them link the two reservations so you won't have to change rooms.

You'll have two distinct reservations, with two different ADR windows, but you'll still get your trip in.

Steve

Agree with this. I think it's unlikely the restriction will change for next year. That said, its early to stress too much about Sept 2022 given there are several ways around this.
Besides the option of renting points, there's also the possibility of doing a split stay with somewhere else on or offsite. None of that really needs to be figured out until Oct at the earliest.

We are dealing with similar for Feb 2022. With the borrowing limit we don't have enough to stay in the view we want at our home resort for our entire trip. Will end up doing a split stay based on what we can book from another contract at 7 months. We can work around it and will still have the unborrowed 50% to use or bank next year.

 

[MARCIAKAZ]

I saw a post that the 50% rule has always been a thing...and is in everyone's contract...just it has never been enforced.

with the state of DVC and covid like Canada and European still not being able to use points. I would not expect the 50% rule to go away any time soon.

When in doubt, read the contract

1) Club Members may Borrow up to one hundred percent (100%) of their allotted Home Resort Vacation Points from their next succeeding Use Year to secure a reservation in the immediately preceding Use Year.

 

[KAT4DISNEY]

I saw a post that the 50% rule has always been a thing...and is in everyone's contract...just it has never been enforced.

with the state of DVC and covid like Canada and European still not being able to use points. I would not expect the 50% rule to go away any time soon.

The ability to suspend or change both banking and borrowing has always been part of the POS. That is different from a 50% rule that hasn't been enforced. That exact wording doesn't exist.

 

[MARCIAKAZ]

I appreciate everyone's thoughts on this - I agree with the suspicion that the restriction will probably not be lifted in time for my plans. It hadn't occurred to me to just book the number of days that I can with the available points, and arrange other accommodations for the rest of the trip...but obvious now, lol . That would be lots easier than renting my points out for $$.

 

[Sandisw]

I saw a post that the 50% rule has always been a thing...and is in everyone's contract...just it has never been enforced.

with the state of DVC and covid like Canada and European still not being able to use points. I would not expect the 50% rule to go away any time soon.

The contracts allow DVCM to suspend banking and borrowing as it sees fit to meet supply and demand.

It is not limited to any certain percentage. We must be allowed to bank and borrow, but if there is a reason, like Covid, that causes an imbalance, then they are obligated to adjust.

 

[Heather07438]

You can also try buying a transfer of points from another member (currently $16-$20 per point).

 

[CarolMN]

DVC could easily continue to justify "rolling" the glut ahead each year indefinitely. Personally, I think they will end the borrowing restriction for stays beginning in 2023.

While it may sound harsh, at some point, DVC will have to allow "early birds" to use their points without restricting borrowing. That means those who book later may end up losing points due to lack of availability. That's the way the system works.

I applaud DVCMC for trying to help those who lost out to the pandemic, especially the international members, but to continue the restriction indefinitely is a disservice to the Members who purchased for the flexibility borrowing provides. It would be helpful if DVCMC would announce an end date, even if it's several months in the future. I don't expect them to do that until after the US allows international visitors to enter again. YMMV.

 

[kniquy]

What to do..cross my fingers and trust it will be fine by then? Rent out the points and use the cash for alternate accommodations?

I would plan on the borrowing rule still being in effect. So with that you could - let the other family know that you might have to postpone the big trip or they could get their own room. It could work too if you are able to get a transfer of points for your shortage. The latter is the best option BUT it will cost you (or the family) money. You could offset it by renting out an equal amount of points, but that might be more of a pain.

 

[fflmaster]

I wanted to bring this back up to see if anyone heard anything.

We have a large family trip to schedule in March 2023 and was really hoping the restrictions would be lifted by the 11 month window

 

[dd08]

I wouldn’t count on it

my guess is like others is that the restriction will be here probably at least through 2022 until the glut of banked points from Covid makes it way through the system (either eventually used ordeposited to RCI or lost)

 

[LAX]

It would be interesting to see how long this restriction will last.

LAX

 

[CarolMN]

It's going to be at least another year, IMO. International Members can't travel to the US until after 11/8/21. DVC has been granting many of them extensions for their expiring points.

 

[Narcoossee11]

Other ' mathematic" Members think it will be at least 5yr years before points get even close to be in balance.

 

[RobDoc]

Historical note:

When DVC began, borrowing was limited to 50% of the total points from the next year. Banking had multiple deadlines limiting when points could be banked.

Both were changed in the late 90's to what we all have become accustomed to but the current status of borrowing was the original status.

Even if borrowing should return to 100%, as we get closer to 2042, I expect we will see modifications for both banking and borrowing - likely beginning several years prior to the expiration date.

Stay tuned!

 

[DonMacGregor]

...as we get closer to 2042, I expect we will see modifications for both banking and borrowing - likely beginning several years prior to the expiration date.

Stay tuned!

That may require a greater level of patience than I can muster.

 

[KAT4DISNEY]

Historical note:

When DVC began, borrowing was limited to 50% of the total points from the next year. Banking had multiple deadlines limiting when points could be banked.

Both were changed in the late 90's to what we all have become accustomed to but the current status of borrowing was the original status.

Even if borrowing should return to 100%, as we get closer to 2042, I expect we will see modifications for both banking and borrowing - likely beginning several years prior to the expiration date.

Stay tuned!

A question just crossed my mind if banking/borrowing restrictions could go into place just for the 2042 resorts? Or if they could make different home priority booking periods for them much like they have done in the circumstance of a new resort opening and owners there might be given 2 -4 weeks priority. Or if they'd have to make the adjustments system wide to accommodate the ending of the 2042 contracts.