Banking and Borrowing Conditions...HELP!

[MJS]

In the new Member Guidebook on page 26 there is the following statement under banking and borrowing conditions:

"In order to maintain a proper balance of Vacation Points in the Central Reservation System, banking and/or borrowing may be suspended or limited from time-to-time."

Has this ever happened? Are they required to provide us with notification prior to doing this?

One of the attractions of the DVC program was the banking and borrowing options. This statement worries me...

 

[Chuck S]

It has,so far, not happened. I would think that this statement is there to protect DVC in the off chance thata huge number of folks wanted to bank or borrow a lot of points, leaving the resorts potentially empty at one time and some very unhappy DVCers who could possibly be unable to get reservation during a current use year. I really doubt they'll ever have to enforce this rule, but it is a case of DVC wanting to cover all of the potential scenarios.

For instance - if everyone banked all their points from year "X" to year "Y" - then borrowed points from year "z" to year "Y" there would be no way to possibly use all those points during year "Y" at a DVC resort. And, if they decided to trade out all those points for cruises, etc. then DVC would have to rent an awful lot of rooms through CRO for 3 years just to try to pay the expenses. If too many of those rooms remained unrented, it could be financially disasterous for the DVC program. Hence the "just in case" rules.

 

[RobDoc]

Thus far, there has never been a suspension of banking or borrowing. The purpose of that clause is to keep the system in balance. If it becomes apparent that everyone is banking a large % of points into the next year and no borrowing occurs for the same time period (meaning the DVC resorts might not be used at an appropriate level of occupancy) they might need to suspend borrowing the following year or risk the possibility that there might not be availability when members try to use all of the banked and current points in one year.

IMHO, it's not likely to occur and thus no suspension will be needed, but the provision is still needed.

As we get closer to 2042, there may need to be some suspension to keep things level for the last year. Otherwise, just enjoy the system as we know it now!

 

[MJS]

Thanks for the responses.

Is there a notification requirement for the suspension of banking/borrowing? In other words, I wonder if the DVC would give its members a period to use their points before suspending banking/borrowing?

 

[Dean]

Originally posted by MJS
Thanks for the responses.

Is there a notification requirement for the suspension of banking/borrowing? In other words, I wonder if the DVC would give its members a period to use their points before suspending banking/borrowing?

This is uncharted territory as it hasn't ever happened. My guess is it won't since it didn't happen for the new Millenium. I would think there will be some changes for the last 2 or 3 years but we don't know what will happen then until the time comes. I suspect they will give us a year or so notice then.

 

[Caskbill]

Actually they DID change the rules, one time only that I know of.

When we first purchased, you could bank 100% of your points, but you could only borrow 50% maximum. Thus with banking and borrowing you could have up to 250% of your points in any one given year.

They changed it fairly early, I think in 1994, and made it so you could bank 100% or borrow 100%, thus having up to 300% of your points available for any single year.

I don't know of any changes ever made since that one.