New Banking Rule: MS Explanation

[drusba]

I decided to email MS to determine how the new eight month banking rule would effect 2007 use years and after several days received an official response which explains:

1. The new rule effective January 1, 2008 will apply to 2007 use years. Effective January 1 you will immediately revert to the new rule for 2007 use years.

2. Thus, for example, someone with a June use year, who under old rule had until November 30, 2007, to bank all 2007 points will now actually have until end of January 2008 because new rule will apply and January 2008 is the eighth month of that June 2007 use year.

3. On the other hand, someone with an April use year, who could have banked up to 25% of their points in their 10th month under old rule, which would have been the month of January 2008, will not be able to bank any 2007 points in January 2008.

 

[dianeschlicht]

Sheesh! You would think they would have sent something out before this publicizing exactly how it works. I would have thought it meant old rules for 2007 use years and new for 2008.

 

[lisareniff]

It is very disconcerting how they are changing the rules with out making a real effort to notify the members of the change. I had assumed after reading the blurb in the newsletter that there would be a followup document with more detailed information. I guess not!

 

[CarolMN]

drushba - Thanks for asking MS the question and posting the results here.

 

[doubletrouble_vb]

Hopefully they'll be smart enough to apply the rules in whatever would be most beneficial to the owner. A much more logical approach would be to apply the new rules to anyone who would be within the 100% banking window under the new rules...everyone past that point should have the old rules apply...after all it can't be THAT many people.

 

[JimC]

Thanks for the heads up. I assumed it would apply to 2008 use years.

 

[Dean]

I decided to email MS to determine how the new eight month banking rule would effect 2007 use years and after several days received an official response which explains:

1. The new rule effective January 1, 2008 will apply to 2007 use years. Effective January 1 you will immediately revert to the new rule for 2007 use years.

2. Thus, for example, someone with a June use year, who under old rule had until November 30, 2007, to bank all 2007 points will now actually have until end of January 2008 because new rule will apply and January 2008 is the eighth month of that June 2007 use year.

3. On the other hand, someone with an April use year, who could have banked up to 25% of their points in their 10th month under old rule, which would have been the month of January 2008, will not be able to bank any 2007 points in January 2008.

Thanks, c/w what I would expect. I guess the main question I have is how will they figure the cutoff date. We've seen 4 months and 120 days. My assumption is points must be banked by the last day of the month that precedes 4 months out. In the June UY example above 31 Jan would be OK and 1 Feb would not.

 

[Debbie H]

It is very disconcerting how they are changing the rules with out making a real effort to notify the members of the change. I had assumed after reading the blurb in the newsletter that there would be a followup document with more detailed information. I guess not!

This has happened before. Not surprised at all, they can do what they want.

 

[Caskbill]

Thanks, c/w what I would expect. I guess the main question I have is how will they figure the cutoff date. We've seen 4 months and 120 days. My assumption is points must be banked by the last day of the month that precedes 4 months out. In the June UY example above 31 Jan would be OK and 1 BR would not.

I sent MS an email about a month ago, asking them to clarify the 120 days vs. 4-months. I never received a reply.

I'm assuming it'll be the last day of the 4-months, the same way it currently applies to the 100%/50%/25% windows.

 

[tic-toc-croc]

It's disturbing that DVC doesn't follow up with more details on the new rules. Glad you started this thread and lucky we read the DIS. Feel bad for the members who don't, it's terrible that someone may lose points over some misunderstanding on how the new rules apply to 2007UY.

For Feb & March 2007 UY, I assume the old rule applies because the deadline dates will still be in 2007, is that right?

 

[Caskbill]

For Feb & March 2007 UY, I assume the old rule applies because the deadline dates will still be in 2007, is that right?

Yes, I read it that way too. February, March 2007 Use Years will not be affected as their 25% window expires before the end of the calendar year.

April UY's lose the 25% window they normally would have had in January. But they would retain the 50% window for Oct, Nov and Dec for calendar year 2007.

June UY picks up the month of January for 100%, but loses Dec as a 50% window, and loses Feb as a 25% window.

August will go thru March for 100%, but loses April as a 50% window, and loses May as a 25% window.

Sep, Oct and Dec UY's have similar changes.

There are some interesting things. Suppose someone owns 200 points with a June UY. Their current 100% window is Nov 30th. Suppose they bank 100 points by Nov 30th. In December they decide they want to bank the remaining 100 points. They cannot because they'd be in their 50% window, and would already have 50% of their points banked.

But if they wait till January, then at that time they could go ahead and bank the other 100% since they just slipped into a new 100% window.

It appears June is the only UY month that will undergo this retrograde motion. All other UY months simply give up the 50% window and replace part of it ( 2 of the 3 months) with a 100% window, and lose the 25% window.