Consequences of borrowing points?

[Mollygirl21]

First time DVC owner and trying to use points for the first time.

We have a small 55 point contract with a June use year. Our first points are available for 2021 so we can only access them by borrowing.

I am looking at booking one night right now but this warning comes up:

"With these borrowed points, you have enough to complete the booking. Please note that borrowing is a final transaction. Once your accommodation is confirmed, these Vacation Points will become borrowed Vacation Points. "

Can someone please help me understand what this means? If we cancel, will we still be able to use those points after June 2021?

 

[Sandisw]

Borrowing is a final transaction. So, if you borrow from June 2021 UY into 2020 UY to book a trip, once you confirm, those points will not go back.

Right now, due to the closure, they are temporarily putting points back for trips made prior to the closures, but normally, that does not happen.

In addition, you can only borrow 50% of your contract until further notice. Again, we don’t know when that will end,

So, I would only borrow if you are sure you are going, or you know you can use them before May 31st, 2021 if you cancel more than 31 days in advance.

 

[Mollygirl21]

Thank you so much. I have a handle on that now.

New issue: I already booked a night and used borrowed points that equal more than 50% of our points (didn't understand)...I see DVC will automatically cancel that reservation but will they go back to being available as regular points with full use or will they be under the borrowed points cancellation rules and still need to be used by June 2021?

I only made this reservation last night

Thanks

 

[WilsonFlyer]

I'm not sure anybody knows yet, but I would be shocked if they essentially double-penalized you for trying and then didn't let you have the reservation also. My bet would be that they will all go back to 2021 as if the transaction never happened at all.

 

[Mollygirl21]

I'm not sure anybody knows yet, but I would be shocked if they essentially double-penalized you for trying and then didn't let you have the reservation also. My bet would be that they will all go back to 2021 as if the transaction never happened at all.

thanks. I'm on hold with MS now and will update if I get a firm answer

 

[Sandisw]

Thank you so much. I have a handle on that now.

New issue: I already booked a night and used borrowed points that equal more than 50% of our points (didn't understand)...I see DVC will automatically cancel that reservation but will they go back to being available as regular points with full use or will they be under the borrowed points cancellation rules and still need to be used by June 2021?

I only made this reservation last night

Thanks

They will put them back...but not sure if only some or all. Keep us posted

 

[Mollygirl21]

MS put the points back to where we started

Also, with the restriction on borrowing points (can only borrow 50%), you can still buy OTU points to top up if you need a couple extra on top of the half you are borrowing

 

[WilsonFlyer]

Sounds like you made it work. Good for you! Good info also. Thanks.

 

[lovin'fl]

Wow...so you might HAVE the points needed by borrowing but can only use half BUT can pay them for OTU points to complete a reservation. What in the actual heck?!?!

 

[WilsonFlyer]

Wow...so you might HAVE the points needed by borrowing but can only use half BUT can pay them for OTU points to complete a reservation. What in the actual heck?!?!

$$$ It's not hard.

 

[4luv2cdisney]

Wow...so you might HAVE the points needed by borrowing but can only use half BUT can pay them for OTU points to complete a reservation. What in the actual heck?!?!

Yup. I bought 14 OTU points to add an entire night in a studio.

Since there is a 24 point limit, the 50% rule really does prevent a lot of owners from pulling a lot of future points into the system while still giving them the opportunity to pull together a stay of some sort.

Although, I don't really understand where those points come from.... are they DVC's points? I know they have their own large pool of points. Does that mean they have less rooms to sell for cash by selling OTU points to owners?

 

[Sandisw]

Yup. I bought 14 OTU points to add an entire night in a studio.

Since there is a 24 point limit, the 50% rule really does prevent a lot of owners from pulling a lot of future points into the system while still giving them the opportunity to pull together a stay of some sort.

Although, I don't really understand where those points come from.... are they DVC's points? I know they have their own large pool of points. Does that mean they have less rooms to sell for cash by selling OTU points to owners?

OTU points come from DVD owned points. So, what they are doing is letting owners buy some of their points instead of using them to book rooms on cash to go towards breakage,

We also hit the maximum for breakage and the rest goes to Disney. So in one way, it reduces the villas they will be taking. On the other hand, yeah...it seems like a move they didn’t need to do as it looks greedy.