Davids DVC: Rental reimbursement or rescheduling?

[DGsAtBLT]

I’ve noticed that as well. I doubt they realize the difficult threading of the needle any plan like this would take or the realities of the points system. DVC can’t create points of out midair. David is looking for some breathing room. The post seems to have calmed people down, but the underlying issues still remain.

Likely a product of many renters not understanding the finer details of DVC or the elephant in the room, the unknown future of the rental companies in general.

 

[RNicole1]

So this is our first time ever renting points and I have no experience with DVC. What does this mean?


We are prepared to issue those that were impacted by the Disney Vacation Club Resort closures a Travel Credit through David’s Vacation Club Rentals. This Travel Credit will be the dollar value of the cost of your DVC Rental less any compensation already received. As this Credit is in its infancy and we are working with several facets of our business, we do not have all of the details to provide to you today.

 

[Marionnette]

So this is our first time ever renting points and I have no experience with DVC. What does this mean?


We are prepared to issue those that were impacted by the Disney Vacation Club Resort closures a Travel Credit through David’s Vacation Club Rentals. This Travel Credit will be the dollar value of the cost of your DVC Rental less any compensation already received. As this Credit is in its infancy and we are working with several facets of our business, we do not have all of the details to provide to you today.

It means “We’re going to throw a bone to all of the irate renters in the hopes that it will quiet them while we figure out how we’re going to handle this kerfuffle.”

But it sounds as if, in order to placate renters, David’s is going to offer a DVC by Request credit equal to the amount that the renter paid for their reservation but anything you have already gotten in the form of a refund will be subtracted from that credit. The renter can then use that credit toward a future rental. IOW, there will be no cash refunds for reservations that were (or will be) canceled due to COVID-19.

Herein lies the rub:

1. David’s has raised his rates since then time when a lot of renters made their reservation. Up $1 per point. For a 100-point reservation, that’s an additional $100 for the renter to pony up for the same number of points.
2. DVC has changed their points charts for 2021. There are now more “seasons” with some times of the year requiring more points per night than the same villa took in 2020. You may need more points for the same nights in 2020. There’s also a possibility that you may need fewer points but don’t expect to get cash back for unused points.
3. Like always, the ability to book your desired resort for the dates that you want is going to depend on availability and owners who supply points for rental. Owners are going to have to feel comfortable with using David’s in the future. That’s a huge question mark. No owners = no points.
4. Credits may have an expiration date. I would be surprised if they didn’t. Just like the airlines when you cancel a ticket, you will have a deadline to use it or lose it. You may have to travel at inconvenient times in order to use that credit.

 

[MICKIMINI]

Who knows what it means? Everything they publish, including contracts seems to be up to interpretation.

 

[tallguy001]

So this is our first time ever renting points and I have no experience with DVC. What does this mean?

Only David’s can answer what this plan entails. If it were me, I would get my money back and book later. David’s model of business could be on shaky ground after these unfortunate events. I have no inside information.

 

[fsjking]

So, assume hypothetically that you do not get the 30% for the first rental in October. At this point David's is in default, and all your other contracts with him should be reviewed. Would you consider taking any action for the January rentals to limit your losses there? After all, the January renter should have the option to charge back

You cannot do that. The contracts are all separate. You will be in violation of any contract you do not fully honor and would have to do a full refund on those. You would have to sue for that 30%, but there's owners who feel that it's not worth going to court over a few thousand dollars. While you may not have to worry about David's doing anything to you about you not honoring the later contracts, a bankruptcy court could very likely expect you to. It's a bad spot to be in because you'd have to honor that contract knowing you probably aren't getting your 30% on that one either.

 

[Sandisw]

You cannot do that. The contracts are all separate. You will be in violation of any contract you do not fully honor and would have to do a full refund on those. You would have to sue for that 30%, but there's owners who feel that it's not worth going to court over a few thousand dollars. While you may not have to worry about David's doing anything to you about you not honoring the later contracts, a bankruptcy court could very likely expect you to. It's a bad spot to be in because you'd have to honor that contract knowing you probably aren't getting your 30% on that one either.

I am already planning to lose out on my 30% even if the resort is up and running. I just don’t believe that the money will be there to pay me,

Since I got the 70% and it’s enough to cover what I wanted the funds to cover, I won’t be fighting to get it if the company isn’t in business by then,

I also decided I will allow the renter to have the reservation even though I am not getting my full payment This is more so because I’m not confident that returning funds to the broker would make it to the renter,

 

[Nennie]

You cannot do that. The contracts are all separate. You will be in violation of any contract you do not fully honor and would have to do a full refund on those. You would have to sue for that 30%, but there's owners who feel that it's not worth going to court over a few thousand dollars. While you may not have to worry about David's doing anything to you about you not honoring the later contracts, a bankruptcy court could very likely expect you to. It's a bad spot to be in because you'd have to honor that contract knowing you probably aren't getting your 30% on that one either.

It would actually be an anticipatory breach of contract. If David's doesn't pay on the first contract, the owner can assume he won't pay on the 2nd contract and demand payment now, or else seek to mitigate damages by cancelling the reservation, perhaps even reaching out to the renter and asking for direct payment of the 30%, etc.

 

[tallguy001]

I also decided I will allow the renter to have the reservation even though I am not getting my full payment This is more so because I’m not confident that returning funds to the broker would make it to the renter,

This raises an excellent “Phase 2 issue.” If/when they are out of business, there are hundreds of reservations that will come up once the resorts open. If insolvent, the owner will not get the final 30% but the renter will have paid 100%.

 

[fsjking]

It would actually be an anticipatory breach of contract. If David's doesn't pay on the first contract, the owner can assume he won't pay on the 2nd contract and demand payment now, or else seek to mitigate damages by cancelling the reservation, perhaps even reaching out to the renter and asking for direct payment of the 30%, etc.

It's a three party contract where each contract involves a different 3rd party, and one party has fully completed their requirement. It's not just David's you have a contract with.

Also, reaching out to the renter to ask for more money would be extortion.

 

[Sandisw]

It would actually be an anticipatory breach of contract. If David's doesn't pay on the first contract, the owner can assume he won't pay on the 2nd contract and demand payment now, or else seek to mitigate damages by cancelling the reservation, perhaps even reaching out to the renter and asking for direct payment of the 30%, etc.

But, an owner would have to return the funds received if they cancel the reservation. You couldn’t recover the 30% feom the renter because they paid in full already to the broker,

So, an owner cancels, sends back the money, but I cant believe they can cancel a second contract and keep the funds as a way to recoup money not paid on a different one. Are toy saying they could?

 

[Krandor]

This raises an excellent “Phase 2 issue.” If/when they are out of business, there are hundreds of reservations that will come up once the resorts open. If insolvent, the owner will not get the final 30% but the renter will have paid 100%.

It is even worse if they are out of business. There is nobody to enforce the contracts anymore. Both members and renters can potentially be screwed.

 

[Sandisw]

It is even worse if they are out of business. There is nobody to enforce the contracts anymore. Both members and renters can potentially be screwed.

Yup. That is why, even though my rental isn’t until August, I have decided to assume they won’t be, I won’t get paid, and that I won’t leave a renter in the lurch without a reservation.

 

[Nennie]

But, an owner would have to return the funds received if they cancel the reservation. You couldn’t recover the 30% feom the renter because they paid in full already to the broker,

So, an owner cancels, sends back the money, but I cant believe they can cancel a second contract and keep the funds as a way to recoup money not paid on a different one. Are toy saying they could?

Yes, the owner would have to send back the portion of the $$ the owner received, but could go ahead and cancel the reservation and rent the points to someone else, or use the points themselves. Again, this is only in a case where the owner has good cause to believe that David's won't honor the contract and won't pay the 30% owed at the time of check in. If you have good cause that a party is going to breach the contract, you can act now to mitigate your damages. It's known as anticipatory breach of contract or repudiation.

 

[Sandisw]

Yes, the owner would have to send back the portion of the $$ the owner received, but could go ahead and cancel the reservation and rent the points to someone else, or use the points themselves. Again, this is only in a case where the owner has good cause to believe that David's won't honor the contract and won't pay the 30% owed at the time of check in. If you have good cause that a party is going to breach the contract, you can act now to mitigate your damages. It's known as anticipatory breach of contract or repudiation.

Got it! That makes sense!

 

[fsjking]

It is even worse if they are out of business. There is nobody to enforce the contracts anymore. Both members and renters can potentially be screwed.

Well.... There's been owners who made it clear that they won't be screwed. They'll cancel the reservation and resell or use the points.

 

[Nennie]

It's a three party contract where each contract involves a different 3rd party, and one party has fully completed their requirement. It's not just David's you have a contract with.

Also, reaching out to the renter to ask for more money would be extortion.

Not extortion at all. This is only in the case where owner has good cause to believe that David's won't honor contract. Owner can cancel reservation, sell it to someone else, ask renter to make up the difference from David's, etc. Owner does have to return the funds it received though, but other than that can do whatever it wants to make itself whole or mitigate the damages.

 

[Krandor]

Well.... There's been owners who made it clear that they won't be screwed. They'll cancel the reservation and resell or use the points.

I think you would see a lot of that is David's goes out of business. No owner would be getting their 30% at that point. Some would keep the reservations and do the right thing and some would cancel. It would be a complete mess.

 

[MICKIMINI]

You cannot do that. The contracts are all separate. You will be in violation of any contract you do not fully honor and would have to do a full refund on those. You would have to sue for that 30%, but there's owners who feel that it's not worth going to court over a few thousand dollars. While you may not have to worry about David's doing anything to you about you not honoring the later contracts, a bankruptcy court could very likely expect you to. It's a bad spot to be in because you'd have to honor that contract knowing you probably aren't getting your 30% on that one either.

I think you misinterpreted what I was saying. No, I'm not going to pull the rug out from anyone. Because I have a second renter, the broker needs to keep me "happy", right? On the second rental, well I have no leverage. I also indicated that if I have to, I will take a hit on the 30%. Please read my post again - maybe I was not articulate, but I have always been a good negotiator and expect that a phone call, if needed would at least get October paid in full. Sorry again if my post was unclear.

 

[MICKIMINI]

I am already planning to lose out on my 30% even if the resort is up and running. I just don’t believe that the money will be there to pay me,

Since I got the 70% and it’s enough to cover what I wanted the funds to cover, I won’t be fighting to get it if the company isn’t in business by then,

I also decided I will allow the renter to have the reservation even though I am not getting my full payment This is more so because I’m not confident that returning funds to the broker would make it to the renter,

Please reread my post. I am willing to give up the 30%. Apparently I am not articulate - sorry!