Commercial Sellers of DVC Points

Caskbill said:
Just wondering, if your friend was driving a white, late model 'such and such' car, with just him and another friend in it, and a bank robbery took place that night, by two robbers, driving the same year, color, and make of car, and so the police pulled him over to check him out, the question is....

Would he be mad and upset at the police?

Or would he realize the police were only doing their duty to try to catch the 'bad' guys, and accept the inconvenience he encountered.

If your friend's 'pattern' of reservations matched the same 'patterns of reservations' used by commercial renters, in clear violation of Disney policy, it makes sense he would be flagged as a commercial renter.



Just .02

You're absolutely right. However, you might be a little upset if you had to spend a night in jail over their mistake. Getting a letter by mistake is one thing. Getting a ressie cancelled is totally different.

I also think some of you are mis-understanding his being "upset" over this. He's not mad...he's simply questioning DVC's right to decide who is a commercial renter based on a set of criteria that is faulty in his case. He said he wished that DVC would've called him to talk about it before sending out the letter...it could've been cleared up pretty easily then...in a much more positive customer service manner.

It will be interesting to see if he, and others who have received the letter are warned by MS when they make that 21st-ish reservation, or if the review process will come later by someone else (like Disney legal). It will also be interesting to see if the members are notified when a ressie is cancelled, and how they will be notified (maybe via another certified letter).
 
It appears that DVC is using a formula to start tackling the issue. They have identified a pattern that in their eyes is consistent with commercial renting. If Beca's friend fails to defend himself against this characterization, then they are well within their rights to cancel his/her reservations under the presumption that silence is an admission of guilt. However, if he defends himself based on what Beca has told us, I have no doubt that there will be no problem and no fear of reservation cancellation after they verify the facts. This reminds me very much of a tax issue I had about 10 years ago. I had a strange tax return that year that resulted in VERY large tax refunds from the state and federal governments. This triggered investigations (not audits) of my tax return and it took several months to get both refund checks (with interest I might add). Everything checked out and I got my refunds, but my return was flagged for further investigation. When it panned out, there was no problem. I see similarities to this rental situation.
 
bluslag said:
How do commercial renters make their reservations. I realize they own a lot of points and call at the 11 month to book these prime times but when we call for any reservation we have to give everyones names that will be staying in the room. Do they make up names when they book because they really haven't rented it themselves yet. I'm glad they have stopped the transferring of points which gave the owner the right to have those points become whatever resort they were tranferred into. But I'm confused how the owner can make all those reservations. Maybe they should have to give a SS that match the name that it is being reserved for. I know noone likes to give out their SS but just trying to figure out this. Am I just not getting this.

You can simply make a ressie in your name, and change the names on the ressie at a later date. For example, I am donating a week at BCV to my dd's school fundraiser. I went ahead and made a ressie there. I just put myself on the reservation. After the fundraiser takes place in April, I will change the name of the ressie to the name of the winner of the auction.
 
greenban said:
The IRS scares me far more than the DVC or Disney, you bet my rental income was reported!

In fact whenever the IRS sends me a letter, I pay off whatever charge they have assessed, and then my accountant usually gets it refunded when he clears up the error. He tells me not to pay, but like I said, I fear the IRS.

Free advice to all.....Don't play with the IRS!!!

-Tony

BTW I'm glad you came back as well Jay!

Very good advice. You don't want to mess with them, even if you are right. The expense and effort of proving it is enough to ruin most people and nothing to them.
 

bluslag said:
How do commercial renters make their reservations. I realize they own a lot of points and call at the 11 month to book these prime times but when we call for any reservation we have to give everyones names that will be staying in the room. Do they make up names when they book because they really haven't rented it themselves yet. I'm glad they have stopped the transferring of points which gave the owner the right to have those points become whatever resort they were tranferred into. But I'm confused how the owner can make all those reservations. Maybe they should have to give a SS that match the name that it is being reserved for. I know noone likes to give out their SS but just trying to figure out this. Am I just not getting this.
Many commercial renters do not reserve rooms on speculation, to rent out later.

Instead they advertise that they will make reservations for you. So someone tells the member they want to rent a vacation at resort ABC for Dates 123. The member calls MS, confirms availability, gets payment from the renter, and only then calls MS again and makes the reservation, giving the renter's name. So for these types of rentals, there is no name change at all.

The pattern is many many people having reservation on this member's points, and never the member himself.
 
Beca said:
I don't think he is going to take any pro-active steps...I think he is just daring DVC to cancel something....that's just the way he is.
That's just dumb! (Not you Becca :)). He's been served with a letter of intent and he's not going to answer it accordingly, which would probably clear up the matter quickly? Great! So now I've got to pay more legal bills via MF's because some owner wants to play with DVC legal. Sounds like one of two things are going on here and it's my conclusion that the points are in his name and not the businesses; 1st he might have rented a few or more points and doesn't want to admit it or 2nd he's an arrogant a$$ with lots of money to blow on trival BS. Tell him thanks for taking the rest of us along for the ride on his trip with DVC legal.

Becca, don't get me wrong, we're still talking about your friend but I kind of get the feeling you're not entirely happy with DVC's decision to go after commerical renters. If that is the case why? I respect your right to voice your opinion but may disagree with it.

Y-ASK
 
I wonder if Disney allowed one transfer in and multiple transfers out and also allowed compensation for transfers if that would help. This way people with to many points could get rid of the points for the benefits of the existing members who need extra points for an extended family vacation etc. We rented out points this past year since we just bought our contracts and all of them were triple points and we are not using points for the DCL in 2007. It is hard to stomach getting $7 per point for the DVC when our cost with our mortgage is $10 plus. In a typical year since there are 8 - 12 of us that go each year we will not have a problem staying with in the rules but I understand from our situation how easy it would be for people who want to stay with in the rules to have a year where they approach the concerned area with no intention to run it as a buisness. We own points at multiple resorts since we usually stay a week at WDW and Vero/HH in grand villas. Based upon my experience you really need the 11 month window to get grand villas and to get reservations during the peak times. It is the only time that our 71 year old grandmother, who loves Disney, gets to see here Grandchildren. I now that it is our preference but it means so much to us to stay together in one room since we do not see each other much. Just some thoughts.
 
Y-ASK said:
That's just dumb! (Not you Becca :)). He's been served with a letter of intent and he's not going to answer it accordingly, which would probably clear up the matter quickly? Great! So now I've got to pay more legal bills via MF's because some owner wants to play with DVC legal. Sounds like one of two things are going on here and it's my conclusion that the points are in his name and not the businesses; 1st he might have rented a few or more points and doesn't want to admit it or 2nd he's an arrogant a$$ with lots of money to blow on trival BS. Tell him thanks for taking the rest of us along for the ride on his trip with DVC legal.

Becca, don't get me wrong, we're still talking about your friend but I kind of get the feeling you're not entirely happy with DVC's decision to go after commerical renters. If that is the case why? I respect your right to voice your opinion but may disagree with it.

Y-ASK

I think one of your assumptions is very correct....he is VERY rich, and runs in very powerful circles. He just doesn't like being "messed with". I honestly don't think he has EVER rented. He says he hasn't, and really...he doesn't need the money. DVC is "chump change" to him (I'd like to live in that world for just a second).

He is upset because, 1) DVC sent him a not-so-friendly letter saying he had been identified as doing something he is not. I KNOW you guys say, "He's just silly." But, what if you had received a letter from DVC, not "asking", but just sending you a bill for trashing a room during your last visit, and you didn't. Honestly, many of you would be really mad!!! I know you say you wouldn't, but come on....people here complain that it took until 4:00 to get into a room, that ME got your bags to you late....don't even get me started on how many people raise a &*%@# when room views aren't what they expected. He just feels it is rude. 2) He feels he purchased DVC points under different guidelines. Had a guide said to him, "Listen, you really don't want to own more points than what you would use to make 20 reservations in a year, because after that...each reservation is subject to being cancelled." Then, he would've bought fewer points and purchased other timeshares in Orlando if he chose. He feels like there was a "rules change" after he purchased that has negatively affected his ownership. He also feels that the new rules disproportionately affect people who own many points. He's not "furious"...he doesn't care that much....he's just "annoyed". And, for some reason (I am not sure why...I am not him, or his lawyers), he has decided to wait until a ressie ever gets cancelled before he does anything. I get the impression that he thinks nothing is ever going to get cancelled. I don't know whether he is right or wrong....but yes, he has money to burn, and that is the way he is choosing to burn it. I told him I thought he should just sell some of his points to get under the "20 reservation" guideline to make it easier on himself, but he didn't take too kindly to that. :confused3

As far as what I feel....I am really torn. I am THRILLED that the commercial renters such as some of those who lie about who they are and what they are doing are getting out of the system. Getting into BCV is much easier, and I am really happy about that! However, I do think that DVC is taking some steps that make me a bit nervous about MY membership in the future. I mean, owning a lot of points, and having reservations in the names of many people should not be the "convicting evidence" of being a renter. DVC should've researched those who post on ebay, the dis, redweek and tug. If they had used that information, my friend would not have been caught in that net. I will tell you....I have rented points out...only once, but I HAVE rented. That makes ME more of a renter than my friend, but I have not received a letter.

I am also nervous about the "1 transfer" rule. I did two transfers once in a one year period because of poor planning on my part (well, actually...I got the opportunity to go again, and I jumped on it). I don't plan on ever needing to do that again, but you never know. However, it is a moot point, now. I am more concerned that the "renters guidelines" (or, whatever you want to call them), and the "1 transfer" rules are just the beginning of more and more restrictions of our memberships. I think as DVC adds more members, and more resorts we are going to see the way we use those points becoming more and more restrictive...and, that makes me VERY nervous. I did not point out the plight of my friend to make everyone feel sorry for him...he can totally take care of himself. I pointed it out because it seems to me that DVC took some steps based on information that was not researched properly. That makes me nervous as well. DVC has a responsibility to administer our membership responsibly. That means nailing people like the Weschlers, and not nailing people like my friend....DVC needs to both see, and understand the difference. And, I agree with Dean's statements that "Even though this rule doesn't affect you, the next one could."

I just think, like many things associated with DVC...as DVC grows, they should be getting BETTER, not WORSE. When I went to work at Southwest Airlines, we attended a speech by one of the founding leaders. She told how when the airline first started, that they had one person on duty who would answer the telephone and take reservations. That person had no pencil, no paper, no computer....the reservations were faked. They just sat on the phone while people gave their information and said, "Thank you". That lasted for a couple of years, until the airline got big and began to sell out flights. Then, they actually had to take reservations...for real. IMO, every time DVC adds a new resort, they ought to add improvements to the system. Home resort points should be able to be tracked, NS rooms should be a guarantee, not a request...and, DVC should not be sending letters to members giving out new guidelines for thier use inappropriately. Honestly, I think unless DVC was absolutely certain, and included individualized "proof" in the letters, we all should've received the form letter.

Don't get me wrong...I think DVC does a pretty good job in what they do, and yes, no one is perfect. I would just prefer to see improvements in the system rather than restrictions on our use. And please, PLEASE let's not have this start a debate (Y-ASK, I almost pm'd this to you instead of posting it, but it was too long)...this really has been debated to death, and no one is going to change anyone else's views on the matter. These boards have been pretty slow lately, and if this becomes the new "hot" thread based on MY opinions I have posted...I will unsubscribe pretty quickly and go back to the community board for awhile. I am NOT trying to bring back the debate regarding transfers, rule changes or anything else...I am simply trying to explain my view to Y-ASK, since he/she (sorry, I don't know...) asked.
 
I spoke to a supervisor at member services

She (May) told me that anyone "renting" points was against Company policy

That is why they have changed it so that if you make a reservation in someone else's name the renter cannot call to find out anything - they will only talk to the member

They told me that "renting" implies you are mkaing money out of yours points which is against the guidelines

they say the only "legal" way is to be a guest of someone's, i,e you don;t pay them to stay on their points
 
Beca said:
He is upset because, 1) DVC sent him a not-so-friendly letter saying he had been identified as doing something he is not. I KNOW you guys say, "He's just silly." But, what if you had received a letter from DVC, not "asking", but just sending you a bill for trashing a room during your last visit, and you didn't. Honestly, many of you would be really mad!!! I know you say you wouldn't, but come on....people here complain that it took until 4:00 to get into a room, that ME got your bags to you late....don't even get me started on how many people raise a &*%@# when room views aren't what they expected. He just feels it is rude. 2) He feels he purchased DVC points under different guidelines. Had a guide said to him, "Listen, you really don't want to own more points than what you would use to make 20 reservations in a year, because after that...each reservation is subject to being cancelled." Then, he would've bought fewer points and purchased other timeshares in Orlando if he chose. He feels like there was a "rules change" after he purchased that has negatively affected his ownership. He also feels that the new rules disproportionately affect people who own many points. He's not "furious"...he doesn't care that much....he's just "annoyed". And, for some reason (I am not sure why...I am not him, or his lawyers), he has decided to wait until a ressie ever gets cancelled before he does anything. I get the impression that he thinks nothing is ever going to get cancelled. I don't know whether he is right or wrong....but yes, he has money to burn, and that is the way he is choosing to burn it. I told him I thought he should just sell some of his points to get under the "20 reservation" guideline to make it easier on himself, but he didn't take too kindly to that. :confused3

As far as what I feel....I am really torn. I am THRILLED that the commercial renters such as some of those who lie about who they are and what they are doing are getting out of the system. Getting into BCV is much easier, and I am really happy about that! However, I do think that DVC is taking some steps that make me a bit nervous about MY membership in the future. I mean, owning a lot of points, and having reservations in the names of many people should not be the "convicting evidence" of being a renter. DVC should've researched those who post on ebay, the dis, redweek and tug. If they had used that information, my friend would not have been caught in that net. I will tell you....I have rented points out...only once, but I HAVE rented. That makes ME more of a renter than my friend, but I have not received a letter.


I just think, like many things associated with DVC...as DVC grows, they should be getting BETTER, not WORSE. QUOTE]


Just to put things into context, none of your friend's reservations were cancelled, correct?

In regards to the system getting "worse", there are many that will disagree. DVC is managing their business, and that business is built upon guest satisfaction. The general view of members that I talk to (most neve post or even read these boards) is that the sysytem works. They don't know or care what point morphing is. The system is not perfect, but neither is life. It is still one of the best run and most flexible timeshare companies.

The reality is, that no matter what DVC does, there will be a few people that blow it out of proportion. They have to start somewhere. A simple letter is not a notice of action, just a notice.

A simple phone call from your friend to DVC would clarify any confusion.

If there was a threat of legal action or actual cancelled reservations, I could understand being upset. Otherwise, enjoy your membership and try not to worry about things that haven't even happened yet.
 
Beca said:
These boards have been pretty slow lately, and if this becomes the new "hot" thread based on MY opinions I have posted...I will unsubscribe pretty quickly and go back to the community board for awhile.
Please don't go any where :). Your opinion was indeed asked for and adds a lot of value to the conversation. I agree with you about the need for DVC to go forward carefully, I just hope they throughly investigate an owner before they do any cancelling of reservations. In fact I wouldn't mind that job myself. Might be interesting to play detective. I know I had fun digging up a couple of potential commerical renters in the last thread that Jay started. By the way, where is Jay?

Y-ASK
 
quattro5000 said:
I spoke to a supervisor at member services

She (May) told me that anyone "renting" points was against Company policy

That is why they have changed it so that if you make a reservation in someone else's name the renter cannot call to find out anything - they will only talk to the member

They told me that "renting" implies you are mkaing money out of yours points which is against the guidelines

they say the only "legal" way is to be a guest of someone's, i,e you don;t pay them to stay on their points
Rspectfully, either you misunderstood or the supervisor needs to read the POS and the other documents members sign at closing. For example, here is a direct quote from the Product Understanding Checklist my DH & I signed at purchase (bolding and punctuation are the same as in the original document):

6. You may sell, rent, transfer or will your ownership interest. DVD has a right of first refusal to repurchase your Ownership Interest on the same terms and conditions, including financing, that your buyer has offered. DVD currently provides no assistance in resale or rental of your Ownership Interest. In the event you attempt to resell or rent your Ownership Interest, you would compete with DVD for buyers and renters at a substantial compettive disadvantage.

The POS & Product Understanding Checklist says renting is OK.
 
quattro5000 said:
I spoke to a supervisor at member services

She (May) told me that anyone "renting" points was against Company policy

That is why they have changed it so that if you make a reservation in someone else's name the renter cannot call to find out anything - they will only talk to the member

They told me that "renting" implies you are mkaing money out of yours points which is against the guidelines

they say the only "legal" way is to be a guest of someone's, i,e you don;t pay them to stay on their points

Just curious how, as a non-member, you have been able to get thru to a supervisor at MS to discuss something like DVC policy ... and why, if you had been told that renting was not "legal" , have you continued to try to rent reservations from members on the Rent/Trade Board?

In addition, when you reported this same issue to me by email almost 3 weeks ago, the name of the "supervisor's" name was Ruby. Were you able to get thru to MS supervisors on two different occasions to discuss the same concerns?
 
quattro5000 said:
I spoke to a supervisor at member services

She (May) told me that anyone "renting" points was against Company policy

That is why they have changed it so that if you make a reservation in someone else's name the renter cannot call to find out anything - they will only talk to the member

They told me that "renting" implies you are mkaing money out of yours points which is against the guidelines

they say the only "legal" way is to be a guest of someone's, i,e you don;t pay them to stay on their points

Actually this could be true as company policy for employees. I heard that Disney now has a strict policy were their employees are not allowed to rent. I have heard this third hand so I am not sure how accurate it is.
 
Actually, renting points IS against the POS. What is allowed is renting a reservation that has been already made. Subtle distinction, but you will find a clause in the POS that says this is the only circumstances under which renting can occur.

"Pursuant to the provisions of the DVC Resort documents, the sale, lease, and transfer of Ownership Interests are subject to restrictions and controls. For example, no Club Member may directly rent, exchange, or otherwise use his or her Ownership Interest wtihout makign a prior reservation of an available Vacation Home at a DVC resort on a first come, first served basis."

Similar language is in the individual resort POS's as well.
 
Doctor P said:
Actually, renting points IS against the POS. What is allowed is renting a reservation that has been already made.
True, you should make the reservation 1st in order to secure the dates the renter wants before money changes hands (in most cases). The points used for the reservation provide the owner with a mathmatical calculation that will be used to charge the renter the rental fee. Saying that you're renting points just makes it easy to determine the fee that is going to be charged for the dates requested. Please don't read into this that you should go and make the reservation 1st (I.E. for BCV at peak times) before you even have a renter ready to agree to your terms and has given you the go ahead to make the reservation. But we don't really want to open that discusion up again do we? :)

Y-ASK
 
WebmasterDoc said:
Just curious how, as a non-member, you have been able to get thru to a supervisor at MS to discuss something like DVC policy ... and why, if you had been told that renting was not "legal" , have you continued to try to rent reservations from members on the Rent/Trade Board?

In addition, when you reported this same issue to me by email almost 3 weeks ago, the name of the "supervisor's" name was Ruby. Were you able to get thru to MS supervisors on two different occasions to discuss the same concerns?

I just love the DVC detectives on these boards! :goodvibes

Although from time to time there is some hostility here on the DVC boards, I love the fact the people are held accountable for what they say/post. So much of what people post in bulletin boards, etc. all over the net is just made up or designed to insight controversy. Here on the DVC DIS, I like to know that the information posted and discussed here is factual. I use lots of this information for my own planning needs (and add-on needs, of course! :rotfl2: ).

Thanks, Doc, our webmaster extraordinaire!
 
Doctor P said:
Actually, renting points IS against the POS. What is allowed is renting a reservation that has been already made. Subtle distinction, but you will find a clause in the POS that says this is the only circumstances under which renting can occur.

"Pursuant to the provisions of the DVC Resort documents, the sale, lease, and transfer of Ownership Interests are subject to restrictions and controls. For example, no Club Member may directly rent, exchange, or otherwise use his or her Ownership Interest wtihout makign a prior reservation of an available Vacation Home at a DVC resort on a first come, first served basis."

Similar language is in the individual resort POS's as well.

I think you're splitting hairs on this one.

When does a "rental" actually take place? When a member comes to an agreement with a nonmember? When the reservation is made? Or when the nonmember pays for the reservation?

Renting is quite clearly allowed, as CarolMN pointed out. It's literally spelled out, not left to interpetation for heavens sake.

There seems to be a fair amount of made up materail in this thread to support various positions. Mystery letters of which urban legends are made and such, going "toe to toe", etc. It just doesn't make sense to me.
 
TCPluto said:
I think you're splitting hairs on this one.

When does a "rental" actually take place? When a member comes to an agreement with a nonmember? When the reservation is made? Or when the nonmember pays for the reservation?

Renting is quite clearly allowed, as CarolMN pointed out. It's literally spelled out, not left to interpetation for heavens sake.

There seems to be a fair amount of made up materail in this thread to support various positions. Mystery letters of which urban legends are made and such, going "toe to toe", etc. It just doesn't make sense to me.

In most circumstances, this would just be splitting hairs, but the point to be made is twofold: 1) the statement that you are not allowed to rent points is technically correct--I agree wholeheartedly that if that is what is meant by the person who indicated this, that that is really splitting hairs; 2) more importantly, this is a reason why you "can't" charge for transferring points. That is the equivalent of renting one's membership interest and it is expressly prohibited that you either rent points (which is exactly what you are doing with a transfer) or receive compensation for a transfer (same effect, but a separate prohibition).

I'm not interested in debating the merits or demerits, nor I am I going to defend that the notion is one that splits hairs. A lot of people, however, are not aware that DVC has expressly stated that they are the ones who control the conditions under which you can rent your interest (and can make any rulees they wish) and that they have given this specific example.
 
Y-ASK said:
Please don't go any where :). Your opinion was indeed asked for and adds a lot of value to the conversation. I agree with you about the need for DVC to go forward carefully, I just hope they throughly investigate an owner before they do any cancelling of reservations. In fact I wouldn't mind that job myself. Might be interesting to play detective. I know I had fun digging up a couple of potential commerical renters in the last thread that Jay started. By the way, where is Jay?

Y-ASK

I went back to lurking. :)

Back on the topic: I do hope we see a lessening of commercial renters in the near future.
 















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