Help!! DVD took too much money out of my checking account!

[kristenrice]

We did an add-on (direct, financed) from DVC back in January. There was a lot of delay with the paperwork (on DVC's end, not ours) and so our first loan payment isn't due until today, June 1.

So, on all of our documentation, it says that our monthly payment will be $49.08 direct debit from the checking account. I have that amount direct-deposited from our online bank into our checking account automatically so that there is no risk of overdraft.

I looked at our account online a few weeks ago and it said that our next payment is due June 1 and the amount is $56.36. Ok, so no big deal...maybe it is just a little extra because it is the first payment. I added the difference to this months direct deposit so that it would be covered. Today, I checked my checking account summary and it shows that DVD debited $78.66. We pay our annual dues in a lump sum and nothing is/was overdue so that can't be it either. What is the deal? We keep our checkbook balance very low and transfer in money as needed to cover bills. This excessive debit concerns me because if I hadn't caught it, we could have been overdrawn.

Here's what it says on the website...

Direct Debit $ 78.66
Amount Toward Principal $ 18.48
Amount Toward Interest $ 60.18

The interest they charged is MORE than what our entire payment should have been. We financed $3600 and I've paid an additional $125 towards principal already. Can anyone explain this? I'll be calling MS as soon as they open, unless someone here has a quick and easy explanation. You folks are often far more helpful than MS.

 

[erionm]

You need to call Member Accounting, not MS. Same phone number, different menu option.

 

[kristenrice]

Oh, gawsh.....I feel silly....

I totally forgot that I asked a very similar question a few months ago...

I went back and found the thread and the folks there gave me the explanation.

But, in the interest of providing helpful information for anyone else with the same question, here's a link to the other thread...

http://www.disboards.com/showthread.php?t=2681370

 

[drusba]

I am not sure exactly what happened in your case and thus you should call but usually the first loan payment is higher than the others because your loan officially starts on date of closing which usually occurs several weeks before your first payment becomes due and thus the first payment has a catch up amount that covers from date of closing.

 

[kristenrice]

I am not sure exactly what happened in your case and thus you should call but usually the first loan payment is higher than the others because your loan officially starts on date of closing which usually occurs several weeks before your first payment becomes due and thus the first payment has a catch up amount that covers from date of closing.

I'm thinking we must have closed in late April/early May, hence the excessive first payment. When I checked the website today, it does show that our next payment is indeed $49.08 so all is well.

I "bought" the points on January 21 (Feb UY so "extra" points to bank right away!) but the paperwork took FOREVER. I had to call member accounting 3 times to find out what the delay was. Apparently, the hold up was with the lawyers in SC, taking their time getting the docs drawn up. Of course, this was after they'd returned it to me once because I missed a "Mickey head". It worked out fine, though. I was able to make my October reservations on time and even had success with my first waitlist.

 

[jesschris]

Glad to hear that everything worked out.

 

[erikawolf2004]

This is helpful info since we are in the process of buying 75 points. How long does it normally take to close with a direct purchase? And then how long usually for your first payment?
Thanks, Erika

 

[Sandisw]

This is helpful info since we are in the process of buying 75 points. How long does it normally take to close with a direct purchase? And then how long usually for your first payment?
Thanks, Erika

When you buy direct, closing can take anywhere from a month to 6 weeks. However, the great thing about buying via Disney, is that you have access to your points immediately from placing the deposit (mine were in my account within a few hours) and can make reservations with them right away. You don't have to wait until you officially close (like resale).

When you finance, I believe it is usually about 3 months from the date you agree to buy until the first payment is due. Interest begins from closing date and that is why the first payment is typically larger because they don't know the exact date all of that will occur when they send you out the paperwork and set up the loan (or that is what I was told).

We ended up not financing and just putting things on the Disney Visa so we got 6 months, 0% interest--enough for us to pay it off without worries.

 

[erikawolf2004]

When you buy direct, closing can take anywhere from a month to 6 weeks. However, the great thing about buying via Disney, is that you have access to your points immediately from placing the deposit (mine were in my account within a few hours) and can make reservations with them right away. You don't have to wait until you officially close (like resale).

When you finance, I believe it is usually about 3 months from the date you agree to buy until the first payment is due. Interest begins from closing date and that is why the first payment is typically larger because they don't know the exact date all of that will occur when they send you out the paperwork and set up the loan (or that is what I was told).

We ended up not financing and just putting things on the Disney Visa so we got 6 months, 0% interest--enough for us to pay it off without worries.

Thanks so much for all this info, I thought the first payment would be alot sooner.

We tried doing resale a couple of times and things just never quite worked out and we decided the headaches weren't worth the money saved...I know this isn't the case for everyone, but it is what is right for us right now.

Thanks again for your reply.

Erika

 

[NatashaDisneyCM]

I should be closing any day now, and my first payment is due Aug 15th and is more money, the second payment is then normal!

 

[ClarabelleCow]

wait, 60 in interest and 18 in principal??? REALLY!!! is that every month? ouch, is there a better way to finance it? maybe a zero interest credit card or something??

 

[Sandisw]

wait, 60 in interest and 18 in principal??? REALLY!!! is that every month? ouch, is there a better way to finance it? maybe a zero interest credit card or something??

When you finance with Disney, the first month is heavily loaded with interest because of the time lag between first payment and the closing date. The OP said that the orginal payment will actually be $30 less than the first one.

 

[TisBit]

Oh, gawsh.....I feel silly....

I totally forgot that I asked a very similar question a few months ago...

I went back and found the thread and the folks there gave me the explanation.

But, in the interest of providing helpful information for anyone else with the same question, here's a link to the other thread...

http://www.disboards.com/showthread.php?t=2681370