Higher than expected due payment

[JimO]

I'm hoping someone can shed some light here...I don't feel like waiting on hold for awhile to get someone to explain it.

We bought 300 points in HH in June and then added another 50 in July. We expected our payments to be less than $100 a month.

Well, we're currently being charged $144 something. My only guess is that it's the way they do pro-rating. We closed on the first points on June 20. The 50 points on July 25. It looks like maybe since the payments didn't start till August 1 and September 1 that perhaps it's an extra month or two being spread across the remaining 5?

Does this make sense? Did anyone else see this happen?

Thanks,

Jim

 

[DebbieB]

When buying direct from DVC, dues are pro-rated from the day you request the points and put down your deposit (not from the closing date). They don't actually deduct or bill the dues until after closing. So you will owe a few months dues at once. For example, I bought around early September, 1999, closed late October, they deducted the dues from my checking for 4 months (September to December) on December 1. Then on January 1, I started with the regular monthly dues payments. I didn't finance through DVC, so I'm not sure how that works.

 

[mkkim]

JIMO,
Are you referring to the actually financing of points through Disney or Dues payments. If you are referring to the financing of points, your first installment payment will be higher than the rest. Take a look at your Note and Truth-In-Lending Disclosure. It will show you the first payment amount and then the rest. My first payment amount was about $243 and then went down to the expected 172.00 for rest of term.

 

[sumessefui]

We did a 100 point addon in Aug. @ HHI. Just got notice that they will start taking out dues in Oct. It was a higher figure than I thought it would be, but it is prorated. In Jan. you should see the dues come down to where you thought they would be. Jerry

 

[drusba]

Dues are not financed; you simply pay them as they become due (which is monthly if you have automatic withdrawal for them). For new purchases you pay dues from date of purchase but don't start in fact paying them for a couple months after that; thus your August through December bills will reflect equal payments for about 7 months of dues (beginning with date of purchase in June) to be paid in 5 months (Aug to Dec). You will see the same type of proration when they start billing you for dues on that 50 point add-on.