Davids DVC: Rental reimbursement or rescheduling?

[Bearval]

But how is insolvency established, until David officially files for bankruptcy? What will determine TICO to establish David has become insolvent? He is not making any reservations, nor is he paying owners the 30%; I have to assume he is still paying his staff, so wages are right now his main cash outflow.

And money put into hold by credit card charge backs until the outcome is determined.

 

[lovethesun12]

But how is insolvency established, until David officially files for bankruptcy? What will determine TICO to establish David has become insolvent? He is not making any reservations, nor is he paying owners the 30%; I have to assume he is still paying his staff, so wages are right now his main cash outflow.

Since his business is affected by covid-19, to the best of my knowledge he would be eligible for a 75% wage subsidy for employees which would greatly reduce the outflow for that as well.

 

[dsnymnkyuncle]

But how is insolvency established, until David officially files for bankruptcy? What will determine TICO to establish David has become insolvent? He is not making any reservations, nor is he paying owners the 30%; I have to assume he is still paying his staff, so wages are right now his main cash outflow.

In the US people don't have to wait till someone decides to go to bankruptcy court. David could be forced in. I am not sure how 'insolvency' would differ from that in Canada but I am sure it does

 

[Dracula]

Since his business is affected by covid-19, to the best of my knowledge he would be eligible for a 75% wage subsidy for employees which would greatly reduce the outflow for that as well.

Is this a program available in Ontario?

 

[Dracula]

And money put into hold by credit card charge backs until the outcome is determined.

You are right, I forgot about that. Was he processing credit cards directly, or via PayPal? PayPal allows users to have negative balance in case of chargeback, and would not automatically withdraw money from a linked bank account.

 

[lovethesun12]

Is this a program available in Ontario?

Yes, all Canada. I'm really not an expert on this, I just have the general knowledge it is available to businesses with a sharp decline in revenue as a result of covid-19, which I *think* would apply for him. It is available until the end of summer I think.

 

[cvjw]

You are right, I forgot about that. Was he processing credit cards directly, or via PayPal? PayPal allows users to have negative balance in case of chargeback, and would not automatically withdraw money from a linked bank account.

I just returned money to him yesterday thru PayPal using my credit card. Not sure if he also accepts credit cards directly. We decided to sell a contract that had a rented reservation on it, so I refunded the 70% and cancelled the reservation.

 

[RNicole1]

If I file a chargeback on my credit card, will David’s pull my credit offer for good? I want to try a chargeback and if it doesn’t go through, then accept the credit, but I don’t want to start the chargeback and lose any chance of the credit either.

 

[Amymouse13]

If I file a chargeback on my credit card, will David’s pull my credit offer for good? I want to try a chargeback and if it doesn’t go through, then accept the credit, but I don’t want to start the chargeback and lose any chance of the credit either.

The email I got said it's that they will hold voucher until outcome...

 

[CanadaDisney05]

Yes, all Canada. I'm really not an expert on this, I just have the general knowledge it is available to businesses with a sharp decline in revenue as a result of covid-19, which I *think* would apply for him. It is available until the end of summer I think.

The CEWS provides businesses who have seen a 30%+ drop in wages against the same month in 2019, or the average in Jan/Feb 2020, a subsidy to help with meeting payroll obligations. They can receive up 75% of their payroll as a subsidy up to a maximum of $847 per week per employee. There are specific rules for arms-length employees.

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

 

[lovethesun12]

The CEWS provides businesses who have seen a 30%+ drop in wages against the same month in 2019, or the average in Jan/Feb 2020, a subsidy to help with meeting payroll obligations. They can receive up 75% of their payroll as a subsidy up to a maximum of $847 per week per employee. There are specific rules for arms-length employees.

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

Thanks for the link! Do you think the business would qualify?

 

[dsnymnkyuncle]

Thanks for the link! Do you think the business would qualify?

Have to lol, do you mean David??

 

[lovethesun12]

Have to lol, do you mean David??

Lol, yes, I figured the title of the thread gave that away =)

 

[Disney1fan2002]

Can someone clarify something for me? If owners are returning the 70% payment on the reservation that was cancelled, are the renters receiving the cash back, or is David's keeping the returned funds and offering just future travel vouchers to the renter?

 

[spinchy]

Can someone clarify something for me? If owners are returning the 70% payment on the reservation that was cancelled, are the renters receiving the cash back, or is David's keeping the returned funds and offering just future travel vouchers to the renter?

He is keeping the money. Renters only have the offer of a voucher regardless of what their particular owner does.

 

[Disney1fan2002]

He is keeping the money. Renters only have the offer of a voucher regardless of what their particular owner does.

WOW..that is real crappy. So, the owners that are refunding the 70% are the owners that want their points back I would hope. I was going to try to scramble and come up with a way to return the money, because I thought of the renter being out all that money. Now that I know the renter is not getting the funds, I will keep my 70% and let David's re-rent the points so I can collect the remaining 30%.

ETA: the e-mail I got from David's about the cancelled reservations implied that if I could return the 70% the renter would be refunded. I'm glad I came upon these threads to discover otherwise.

 

[lauraleh]

If I file a chargeback on my credit card, will David’s pull my credit offer for good? I want to try a chargeback and if it doesn’t go through, then accept the credit, but I don’t want to start the chargeback and lose any chance of the credit either.

He would have to give you the credit. The only way he could possibly win a chargeback is by claiming he is giving you a credit voucher.

 

[McCrae]

He would have to give you the credit. The only way he could possibly win a chargeback is by claiming he is giving you a credit voucher.

Maybe. Or the CC may accept his no refunds contract clause.

 

[McCrae]

WOW..that is real crappy. So, the owners that are refunding the 70% are the owners that want their points back I would hope. I was going to try to scramble and come up with a way to return the money, because I thought of the renter being out all that money. Now that I know the renter is not getting the funds, I will keep my 70% and let David's re-rent the points so I can collect the remaining 30%.

ETA: the e-mail I got from David's about the cancelled reservations implied that if I could return the 70% the renter would be refunded. I'm glad I came upon these threads to discover otherwise.

Be careful about accepting the new contract that goes with re-renting. It transfers liability to you. Smart move is to forget about the 30%, either use the points yourself or walk away.

 

[Disney1fan2002]

Be careful about accepting the new contract that goes with re-renting. It transfers liability to you. Smart move is to forget about the 30%, either use the points yourself or walk away.

I wasn't aware that I could walk away. At first, when I told them my points expire the end of May, they told me they understood if I could not refund the 70%. Then, they found out DVC was extending the expire dates, so the email they sent me was basically telling me to let them know what use year I was in so they can point my points back in the queu. Why wouldn't they just use my points to re-book my original renters? I guess I can walk away if they won't honor the original contract I signed for the points, correct?