Limit/Suspend Banking/Borrowing?

[Wes]

In reading over the Summer 2004 "Vacation Magic", I read (p. 4) the answer to the question "Why can't I bank my banked Vacation Points?"

At the very end of the reply is this: DVC "may limit or suspend banking and/or borrowing should it become necessary to maintain or restore balance." The balance they are talking about is the inventory balance.

It has been years since I bought in, and while there may have been some caveat about this reservation by DVC, I do not recall it, and I have not gone to dig out the documents yet. Does anyone recall having heard of this before?

And it also raises another question: what are some scenarios in which such an imbalance could occur within the current banking/borrowing rules?

 

[Beca]

Someone posted that they thought those limits might come into play around 2040 or 2041. Definitely, you will not be able to "bank" in 2042. I think that clause was more of a "cover yourself" clause on DVC's part. They also can "supposedly" suspend the ability of a member to stay at any resort other than their own...something they will probably NEVER do unless there are no more 2054 resorts, and after 2042 they just "close the doors" on the other ones.

I wouldn't worry about that too much.



Beca

 

[Chuck S]

Yes, the Limit/Suspension clause has been a part of DVC since the beginning.

As to when they would use it?

Surely banking will be suspended/discontinued near the end of our contracts in 2042/2054. Also if a resort was heavily damaged by fire, flood, hurricane or whatever. If a resorts owners would elect at some time in the future to withdraw from the Disney Vacation Club management system.

 

[RobDoc]

An extreme example would be if everyone banked thise year's points into next year, DVC could conceivably decide to suspend any borrowing into next year. In this scenario, there would already be two years of points to be used in the system next year - allowing a third year's points to be applied to the same year would cause further imbalance in the system, even if many were using the points for non-DVC options.

As long as the usage remains reasonably balanced, it's not likely necessary to suspend either banking or borrowing until we approach 2042. It will be interesting to see what limits are applied at that time.

Stay Tuned!!

 

[Dean]

If they didn't limit borrowing for the Millenium, it's doubtful they will other than the last couple of years they'll likely limit banking but not borrowing. They'll also like prorate the points or a similar limitation the last year or two.

 

[Wes]

Originally posted by WebmasterDoc
An extreme example would be if everyone banked thise year's points into next year, DVC could conceivably decide to suspend any borrowing into next year. In this scenario, there would already be two years of points to be used in the system next year - allowing a third year's points to be applied to the same year would cause further imbalance in the system, even if many were using the points for non-DVC options.

Thanks for this example. It does make sense.

I would guess that the most non-use of points (and thus banking) was right after 9/11, when some people curtailed traveling. So since we survived that without restricting banking and borrowing, then it must not have been bad enough to cause an imbalance of inventory.

 

[Mickmse2002]

Given the fact that I am in a constant state of "borrowing" I do my part to help balance against all of you out there who have to bank their points.

 

[drusba]

To date, DVC has never used the limit clause. A scenario where it might be considered: the summer Olympics comes to Orlando, which was something that was actually on the table a few years back.