Dave Ramsey Faces $150 Million Lawsuit Over Questionable Endorsement. Can You Still Trust His Advice?

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Financial guru Dave Ramsey endorsed a company engaged in deception. Read on to learn if we can still trust his recommendations. 

Dave Ramsey has established a reputation for offering no-nonsense personal finance advice and helping millions of families get out of debt and build long-term wealth. People trust him, which is how Ramsey built a network of personal endorsements, otherwise known as “RamseyTrusted.”

Between 2015 and 2021, one of these trusted providers was Timeshare Exit Team, a timeshare exit company that promised to help Ramsey’s followers get out of timeshare agreements, or else get a full refund from the company.

If that sounds too good to be true, that’s because it was partially false: Timeshare Exit Team only helped about half of the requested exits, while also raking in millions of dollars from clients whose timeshare agreements it did not lawfully end. The company went out of business in 2021, after settling a deceptive business practice lawsuit in Washington, and Ramsey now faces a $150 million lawsuit from former fans who claim they were defrauded from his endorsement.

The tactics this timeshare company used to “free” clients of timeshares — from creating fake property deeds to advising them to “stop paying” their timeshare company, even if it led to foreclosures — are pretty shocking. But as someone who has taken financial advice from Ramsey in the past, I’d like to pause and ask — can we still trust Ramsey’s word?

Be vigilant about his endorsements

You might trust Ramsey’s financial advice. But when it comes to his endorsements, I would approach them cautiously.

It’s important to note that Ramsey is making money off his endorsements and has a financial interest in whatever he recommends. Even when he sounds as if he’s giving you selfless financial advice — whether it’s about hiring a tax professional or making a will — he’s selling you a service. And, as the Timeshare Exit Team fraud demonstrated, these services may not be best for you.

Now, Ramsey does claim he endorses companies only after he and his team have vetted them. In fact, on the RamseyTrusted website, it states:

“We won’t sugarcoat it: We put our pros through the freaking wringer before they ever start their first day of work with us. It’s not just one interview or phone call. Like the old canary in a coal mine, our leaders and coaches put their finely tuned radars to the test, and if things don’t check out — it’s a no. So when pros make it, you know they’ve got chops. And you know they want to serve you.”

And yet when a company like Timeshare Exit Team makes it through that vetting process, one has to wonder why the canary was mute.

Decide independently

Instead of relying on Ramsey’s selection process, do the vetting yourself. Read the fine print on contracts, look up the company’s profile on the Better Business Bureau, and read customer reviews on third-party sites. Compare its services and prices to similar companies in its industry and don’t be afraid to break away from his advice if you find something that better suits you.

To be sure, his services might be a good fit, especially if you want to work with someone who more or less agrees with Ramsey’s philosophy. But come to that conclusion on your own. At the end of the day, do your own thinking and always pause for thought when someone purports to have done the thinking for you.

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