Why is my 1st annual dues payment so high?

[Michelle1125]

I just looked at my annual dues statement online and it says that they will be debiting $247 from my account Oct. 1st! I purchased 160 points in AKL on August 1st. I thought my dues would be about $61 per month. Can someone help me with this?

 

[deej696]

Same thing happened to me, and here is what I was able to figure. When we purchased in June, we got the 07 "Bonus" points, and when we got our info the dues were quite a bit higher per month. The only thing I could figure is that since we were giving the full years worth of points, we had to pay the full years worth of dues. Since we bought in June, it was quite a bit higher than it would have been in January. I could be totally wrong here, so maybe someone else can help clarify...

 

[Michelle1125]

Thanks it looks like that adds up. Wow it would have been nice if they had made that more clear. Maybe I missed the fine print...or maybe that should have just been common sense? Oh well at least I have it covered.

 

[Rwars10230]

Dues are paid on an annual basis in January regardless of your use year. You are paying a pro rated amount from when your contract was purchased. In your case you are paying dues for the August through December 31st period of 2007. You will then be able to pay monthly from 2008 forward.

 

[LisaS]

I just looked at my annual dues statement online and it says that they will be debiting $247 from my account Oct. 1st! I purchased 160 points in AKL on August 1st. I thought my dues would be about $61 per month. Can someone help me with this?

I'm guessing you either have a September Use Year, or if your UY is earlier than Sep, then the occupancy date of the Unit you purchased is Sep 1st. You will owe dues starting from the later of: your purchase date, the start of your Use Year and the occupancy date of your Unit at AKV.

Working backwards from the $247 figure, that works out to 122 days worth of dues for 2007:

160 pts * $4.62/pt = $739.20 (dues for a full year)
$739.20 / 365 = $2.025.../day (dues per day)
$247 / $2.025... = 122 days

Counting back 122 days from the end of the year is Sep 1st. So you are being charged dues starting from Sep 1st. So either your UY is September or if it's earlier than that, then the occupancy date for the Unit that you purchased is Sep 1st.

 

[izzy]

I had the exact same thing when I looked at my fees online yesterday. (I bought 160 points on July 24, but didn't close until later in August. My UY is April.) I called yesterday, and MS Accounting told me that it is 4 months of dues from 2007 (Sep, Oct, Nov, Dec) that I have to pay:

160 x $4.62 = 739.20/12 months = $61.60/month

61.60 x 4 months = 246.40 ($247 according to Disney's calculations - I've found that they do love to round up!)

Now, since September first has already passed, that $247 needs to be paid in 3 months, thus 82.33/month payable on 10/1, 11/1, and 12/1.

When I initially signed up, I told them that I would pay my maintenance fee in a lump sum rather than monthly. When I talked with them yesterday, I changed it to debiting my account monthly, just like they do my loan. They may have you in the system as a lump sum payer even though you told them otherwise.

Hope this helps!

 

[Michelle1125]

Thanks for the detailed responses everyone! I guess I need to call MS. I thought the form I filled out for automatic bank draft meant that I was paying monthly.

 

[Doctor P]

Thanks for the detailed responses everyone! I guess I need to call MS. I thought the form I filled out for automatic bank draft meant that I was paying monthly.

Did you only fill out one form? There are two forms that need to be filled out as I recall. One to authorize a loan payment deduction and one to authorize a dues debit. If you have a loan, that may have been what you filled out.

 

[pilferk]

I had the exact same thing when I looked at my fees online yesterday. (I bought 160 points on July 24, but didn't close until later in August. My UY is April.) I called yesterday, and MS Accounting told me that it is 4 months of dues from 2007 (Sep, Oct, Nov, Dec) that I have to pay:

160 x $4.62 = 739.20/12 months = $61.60/month

61.60 x 4 months = 246.40 ($247 according to Disney's calculations - I've found that they do love to round up!)

Now, since September first has already passed, that $247 needs to be paid in 3 months, thus 82.33/month payable on 10/1, 11/1, and 12/1.

When I initially signed up, I told them that I would pay my maintenance fee in a lump sum rather than monthly. When I talked with them yesterday, I changed it to debiting my account monthly, just like they do my loan. They may have you in the system as a lump sum payer even though you told them otherwise.

Hope this helps!

ditto all the above.

We have 200 pts. Our dues would be 308. I was figuring they would be deducting in Sept, since our UY and in service date of our unit were both Sept dates, but instead the first payment won't be til Oct. It doesn't much matter, in the long run, but I was figuring $77 a month for 4 months and it'll turn out to be about $103 for 3 months.

I was also under the impression it would get deducted at the same time my loan does (the middle of the month) but it looks like it will come out on the 1st of the month, instead. Again, not a big deal.

 

[LisaS]

I had the exact same thing when I looked at my fees online yesterday. (I bought 160 points on July 24, but didn't close until later in August. My UY is April.) I called yesterday, and MS Accounting told me that it is 4 months of dues from 2007 (Sep, Oct, Nov, Dec) that I have to pay:

160 x $4.62 = 739.20/12 months = $61.60/month

61.60 x 4 months = 246.40 ($247 according to Disney's calculations - I've found that they do love to round up!)

I believe they charge by the number of days when the pro-rate the dues:

160 x $4.62 = $739.20
$739.20/365 days x 122 days = $247.07

So you are getting a 7 cent discount!

 

[izzy]

I believe they charge by the number of days when the pro-rate the dues:

160 x $4.62 = $739.20
$739.20/365 days x 122 days = $247.07

So you are getting a 7 cent discount!

I'll take any discount I can get !

By the way, (and not to hijack this thread), but I wanted to thank you so much for helping all of us newbies understand DVC and get the details on the different resorts. I've learned a lot from your posts, and I'm sure countless others have, too!

 

[AKV707]

New owner here as well. Bought 210 AKV in July. Closed on 8/22. My unit opened on September 1. My dues will be taken out monthly OCT, NOV, DEC, at $108 month. I was a little surprised when i saw the number, and then I remembered that they would be prorated.

 

[LisaS]

By the way, (and not to hijack this thread), but I wanted to thank you so much for helping all of us newbies understand DVC and get the details on the different resorts. I've learned a lot from your posts, and I'm sure countless others have, too!

You're welcome! I was a newbie myself not so long ago so I remember how confusing all these details can be. So I'm happy to pass along everything I've learned (and continue to learn) here on the DIS!

 

[KevGuy]

Yup, we bought 160 pts in in April (DEC UY), closed in may. Then got a bill for a little over $400 at the end of June. It was the first year MF approx 2/3rds of the full year. Waiting for my form now to fill out and send back to do the monthly auto debit thing so I don't have to pay out over $600 after Christmas in Jan. I'm very happy that they do that interest free. I think we'll end up paying around $54/mo for MF at SSR. So we skip dinner out now one night a month and it pays for itself, pretty cool.

 

[TLPL]

We bought 160 points August 27th, August use year. But the guide said our unit not be opening till December, so our AD is just for 1 month (December 2007). We got all the 2007 points and Double Developer Points. We used them all to book a trip for 8 on 3 nights Disney Cruise Line 4 nights AKV in February 2008. That's cool huh?