Thinking of Renting Out My Points--Nervous

[KAT4DISNEY]

I'm not an owner but I've rented. I always thought, as when I booked thru Disney, by me giving them my credit card, they would hold me responsible and charge what they could on that. Is that not the process? I've never destroyed anything so I don't know

As with most IT things at Disney, including CC processing, it can be iffy. I've read at least once where the Disney stated they were unable to charge the credit card of a renter and the owner found out when their account was suspended. As it turned out it was a relative so no issues in getting it paid but I think they also thought the credit card should have worked just fine. There was some such other similar story - related to room charges, not damage where Disney didn't or couldn't charge and the DVC account was suspended until paid. It's very rare but has happened. Nothing fraudulent and money's recovered. That was several years ago though too.

 

[mab2012]

If the renter incurs unrecovered costs, and Disney tries to recover from the owner, David's will reimburse the owner. David's will then blacklist the renter and write off the amount paid to the owner as a cost of doing business. The end.

Did you get this from someone at David’s? Or was this from experience? I couldn’t find anything in the contract.

I'm not the poster you replied to, but my guess is that the answer is "neither". It's just a reasonable explanation of what's likely to happen in that case, based on common (business) sense and probably typical behaviour of other small companies in similar situations.

But how does that work if a US renter rents points through a Canadian Co that is transferring points from a US owner?

Very good question, Hopefully. I agree the legalities could be complex since David's is in Canada.

I am not a lawyer.

Having said that, I don't think the physical location of the parties to a contract is necessarily relevant. Interestingly, David's Owner's Agreement specifically stipulates that the contract is governed by Ontario law and that any disputes fall under the jurisdiction of Ontario courts, but there's no such clause in their sample Renter's Agreement. My completely non-professional take on that is that if an owner wanted to go after David's, (s)he would be obliged to do so in Ontario, but if David's wanted to go after a renter, they could do so in the jurisdiction of their choice (assuming that the courts in that jurisdiction would agree to hear the case).

A quick Google search suggests that civil judgements in Canadian courts will usually be recognized and enforced through US courts (and presumably vice versa), but no doubt it takes more time and effort to make that happen. Depending on the situation, David's might choose instead to sue in the home state of the renter, in order to avoid the extra step of foreign enforcement. That is, if they chose to sue at all. More likely, they would do as lawboy suggests and simply write it off, because the effort and cost of involving the courts wouldn't be worth the potential payout.