Paying m/f before depositing

[Keitht Super Moderator Find all posts View Profile Close Keitht]

The question comes from the problems experienced in "SFX took my money" in this forum.
In that thread the OP states that the exchange company wouldn't accept his week until the fees were paid, and one of respondents says that most exchange companies are the same.
I've been a member of RCI for 20 years and have until recently deposited 2 years out and on occasion used the exchange unit before my home resort fees have been either requested or paid. Is the 'no deposit before m/f payment' a purely US thing?

[wackymother Senior Member Find all posts View Profile Close wackymother]

It depends on the resort and whether you have a fixed or floating week.

One of my resorts (floating weeks) won't let you reserve a week until the maintenance is paid for the following year, and even then you can't reserve before a year out.

My other resort (fixed weeks) lets me deposit my week two years out, if I'm up-to-date on my fees for the current year.

[bnoble Senior Member Find all posts View Profile Close bnoble]

Yes, this is just resort-dependent. When you deposit a week, the exchange company will contact to the resort to confirm that you do in fact have rights to that week. Some resorts are conservative, and will not offer such confirmation until (estimated) fees for that week are current up to and including the deposited interval. Other resorts are not.

For example, Wyndham UDI owners have the option to pay in monthly installments, spread out over the UDI use year. But, they can deposit time into their external exchange as soon as 10 months in advance of the start of the use year---or 22 months before that use year has been fully paid.

[ebram Senior Member Find all posts View Profile Close ebram]

Makes common sense. If the MFs are not paid, the exchanger would not be allowed occupancy, leaving the exchange company with a big problem. The only thing that would stop ant of those kind of problems is to prepay the exchange before the deposit.

[jericap Super Moderator Find all posts View Profile Close jericap]

I've always prepaid my MF's because I want to deposit more than a year out. And just as Pat mentioned, they have always been billed me the balance if the MF was not estimated correctly the previous year. Now, I know it is resort specific, but wondering if the specific management company is more the influential factor. The resorts I am talking about are VRI managed and require pre-paid MF's before depositing.

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

Most of the resorts that we own, require that you pay the MFs before depositing. As one who does a fair amount of exchanging, I think it is a good policy, I would hate to have made an exchange 1 or 2 years out and then find out later that I couldn't do the exchange because the owner had not paid the MFs.

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

the only resort I've been able to deposit before paying m/fs was my Marriott.

SFX's rule makes some sense. If you are allowed deposit before paying, and ultimately default, the resort may take the week back, leaving the exchanger out in the cold.

Maybe Marriott will still honor an II exchange even in the case of default, due to its rel'p with II? Anyone know?

[Mark @SFX Industry Representative Find all posts View Profile Close Mark @SFX]

The question comes from the problems experienced in "SFX took my money" in this forum.
In that thread the OP states that the exchange company wouldn't accept his week until the fees were paid, and one of respondents says that most exchange companies are the same.
I've been a member of RCI for 20 years and have until recently deposited 2 years out and on occasion used the exchange unit before my home resort fees have been either requested or paid. Is the 'no deposit before m/f payment' a purely US thing?

Hi Keith - Unfortunately the OP wasn't as honest as he could have been about the email response back to him. He chose to use just one "sound-bite" out of many, intentionally trying to slant a negative view, maybe thinking those kind of unscrupulous tactics work in one's favor. Other than depositing an "invalid" week, he also failed to mention there was an offer to return his week (after it cleared processing), which would include a refund of the Platinum Memberhsip, and termination.

As a general rule, in "most cases" a resort will not allow you to reserve a week for personal use, or for deposit with an exchange company unless the maintenance fees for the week being reserved are paid in full. For all practical purposes, this is a common-sense procedure for all the obvious reasons.

From an exchange company's point of view, a week that is deposited without the maintenance paid is an extreme high risk liability, and generally cannot be used to book another member into, until such time the maintenance fee is paid.

The risk is the potential for the depositor not paying their maintenance, and the inbound exchange guest no longer has a place to stay, and there is a financial liability upon the exchange company to "make good" the reservation. Meanwhile, the depositor may have already been booked for their exchange and used it.

A week that does have it's fees paid and current, is a viable bookable asset that is considered "safe" for booking a customer. Nothing like some piece of mind !

Thanks,

[funtime2 Senior Member Find all posts View Profile Close funtime2]

Thanks for the reply. The pictures is much clearer now.... (sigh of relief). I have not been able to get a match on my deposit, but I am not giving up. I know you will find one someday......and it will be a good one too!

[Keitht Super Moderator Find all posts View Profile Close Keitht]

Hi Mark,

Thanks for a response from the exchange company perspective. I deliberately tried to make the question as neutral as possible as I genuinely don't have a strong opinion either way on whether or not the m/f should be paid before deposit.
Not having to pay in advance of depositing has obviously been good for me over the years, but I can see the downside risk for the person exchanging into the unit and the exchange company if the owner defaults.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

The resort where I was a board member before moving across the pond required payment of the m/f before the week would be confirmed to the exchange company, but I have owned at resorts that allowed such deposits as long as you were current on the day the deposit was made.

Our resort dealt with RCI, DAE, and occaisionally Platinum, and all of them called or faxed to confirm deposits. The resort did not confirm to the exchange company if the m/f was not paid. It would seem to me that if the resort confirmed, and then the owner did not pay the m/f, it would be the resort that would be out rather than the inbound exchanger or the exchange company since they were the ones who okayed the spacebanking even with no m/f paid.

[barndweller Moderator Find all posts View Profile Close barndweller]

Most of my 9 different resorts require me to pay the MF before reserving. They always charge me the same fee that was last billed and then bill the difference when the regular billing comes out. My Sheraton unit doesn't require prepay (although I do just for my own peace of mind) and my Hanalei Bay won't even let me pay an estimated fee in advance. Every resort or management company sets the rule. SFX is certainly not at fault in this instance. The OP should have been aware of the rules set by his resort managment regarding depositing a reserved unit for exchange and should have paid his estimated MF at the time he reserved the unit. The rejection would never have happened. He would still have had a problem asking for an exchange beyond his paid membership, however.

None of the exchange companies allow one to request an exchange beyond the expiration of membership. They all offer price breaks for multiple year memberships. If the OP wanted an exchange in 2009 and wanted the 18 month request advantage offered platinum members it only makes sense to have a membership that would extend through that timeframe.

It sounds as though SFX has offered him a full refund. He ought to take it and see how well he does with a 1 year membership at RCI!

[philsfan Administrator Find all posts View Profile Close philsfan]

One of my resorts just recently switched from pay before you deposit to reserve/deposit when you like and pay quarterly. I have deposited my 2010 week and I still haven't finished paying 2008 yet.

[jlwquilter Senior Member Find all posts View Profile Close jlwquilter]

Just to add in another twist... a new resort I am in the process of buying right now required 1/2 of the current MF to be paid for any future week deposited, up to 2 years out.

So once this thing closes, I will pay the equivalent of 1 2008 MF but will have it earmarked for 1/2 2009 MF and 1/2 2010 MF.. so I can deposit the weeks whenever I want and be ready to play!

My other trader doesn't require any MF to be pre-paid at all... I already have one 2009 exchange booked thru RCI using the 2010 week!

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

Be sure to keep good records when you pay your maintenance and/or taxes early. I have a case where the resort tried to double bill me and without the documentation, it would have been hard to prove.