Disney is probably not used to the collections game (although that department does exist for resort guests who have provided a credit card that was subsequently maxed out and who couldn't pay their bills).
If they really increase the amount of collections they have without a corresponding increase in pass sales, then they will probably re-think the program. (Although they did say something about late fees. So, they'll probably still make money on the deal.) It would tarnish their image if they had to become collection agents with too many members of the general public. Even when people are in the "wrong" about owing money, they still resent the business that tries to collect from them.
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Well, Disneyland has been doing this for a couple years now and if they had issues on defaults it wasn't enough to stop management from recommending the option for WDW. In fact, their payment plan offering was launched in the middle of the financial meltdown so if there were going to be problems that was the time they'd be more possible
<i>DVC Member since 2006 (Saratoga Springs Resort)</i>
It's not the bank's issue. If you go to WDW, give your $1000 limit credit card for paying your room, then max it out over the course of your vacation, then WDW can't place a charge on that card for the room.
Just because a transaction is "pre-authorized" by the consumer, that doesn't mean the merchant gets their money from the financial institution if that account doesn't have any more money to give.
It's not on the bank. Those are spot transactions. An agreement to pay a series of payments in the future is basically a loan. And regardless that the party making the loan requires that you give them a credit card to pay it, it's not a liability of the financial instituion backing that credit card.
If you max out your room charging priveleges, and your credit card is maxed out, they send it to Disney's billing department.
Glad to see that they didn't have a problem in CA. This flexible payment choice for now is great. It doesn't even involve interest. (Although they did mention late fees if a payment was missed.)
Well, anyway, the individual consumer is responsible for making sure their card won't be declined on those future transactions. If the card is declined, it goes back to the individual and not to the bank.
I'm sure Disney will be attaching late fees and other fees if the card that one uses for their annual pass payment plan is declined in one of the payment months. The real question is whether they would continue to pursue getting the whole cost of the annual pass, or if they would de-activate the pass and just drop the matter.