A good point. Begging the unfortunate question…at what price would I be ‘forced’ to buy back into BCV
I have been looking at adding another resale contract and laying the groundwork with my better half. She is great at sales pitches, where she just keeps repeating "We don't need any more timeshares!", but also hard to convince we need more DVC. Given this news I will cool my jets a little and see where things land. I think we are months away from any real action by Disney, but who knows, maybe they will act faster. With this news I'm now willing to wait for a bit to see if it drives prices down.
I'm not sure we'll know when or how they act. I think it will be like the Wyndham "owners' priority" changes, a gradual change in rental availability especially confirmed reservations, maybe a gradual increase in contracts for sale as the big commercial enterprises divest themselves, etc., posts about rental reservations being cancelled. I doubt that Disney will crow about shutting down a specific commercial operation.
If the rental services aren't DVC members, can they really do something to prevent brokers from helping facilitate transactions for other members?
At least one of them rents their own as well. I'm sure there are legal nuances but I do believe they could take steps to limit this sufficiently to make it not worthwhile for those businesses to continue. We'll see if it has teeth, I doubt it will.
Disney's only real enforcement action is locking an account. Does DVC have rules like Bluegree which prevent people from giving access to their account to a third party?
My understanding is that one of them does both, rents for others and rents their own. I think there are a lot of things they could do to make it more difficult. I don't believe DVC allows third party access but am not completely certain. The member is still the one making the reservation when going through the third party. IMO the largest deterrent to DVC is the contactual language that specifically allows renting for all but the newest resorts but if it wrecked easy I'm sure they would have taken more steps already.
I understand that some of the entities collect the member credentials and then login on behalf of the member to make necessary reservations?
Maybe, I'm not aware of that but haven't followed it as closely the last couple of years. You could add someone as an associate if you wanted but the rules make it clear you're responsible for and subject to binding arbitration. Probably the easiest deterrent would be to institute fees for certain actions but that would cause an initial uproar.
Not something I would ever feel comfortable doing if renting out points.That used to be true for at least one of the majors (I believe David's) but DVC cracked down on that somewhere in the 5-10 year ago timeframe. None of the majors now do so...but there could well be more 'fly by night' FB operations that continue to run multiple member accounts.
DVC's more immediate enforcement action is cancelling the reservation. I've heard tale of their both locking accounts and cancelling reservations...but have no actual evidence.
It’s believed (and I can’t prove it but don’t doubt it) that these entities own multiple contracts under various LLCs and other forms of ownership to get around the 8,000 point ownership maximum. Then they transfer points from one membership to another to build large pools of points to book reservations, and ultimately they can sell the stripped contracts.
I think it depends on how you view what the big brokerages are doing. If they are simply facilitating rentals between owner and renter, then there shouldn't be much of an impact. If the brokerages are also owning large amounts of points or stripping contracts to rent the points and resell the contract, then they might be impacted.
