Dave Ramsey sued for $150 million

[pknopp]

I was never a fan of Ramsey. A hypocritical blow hard as far as I was concerned. I can't say this surprises me.

Dave Ramsey sued for $150 million by former fans who followed his timeshare exit advice

 

[multivita-man]

I don't agree with Ramsey's political stances and preaching but a lot of his basic advice is spot-on, IMO.

There's always a caveat emptor when taking someone's advice.

 

[pknopp]

I don't agree with Ramsey's political stances and preaching but a lot of his basic advice is spot-on, IMO.

There's always a caveat emptor when taking someone's advice.

He gives advice one can get in a high school economics class.

 

[Seymour Flops]

I was never a fan of Ramsey. A hypocritical blow hard as far as I was concerned. I can't say this surprises me.

Dave Ramsey sued for $150 million by former fans who followed his timeshare exit advice

Three thoughts:

1) I found his advice very good at a time when I was struggling with debt more than twenty-five years ago. I am in far, far better financial shape having taken his relatively simple advice that I had not heard anywhere else. Therefore, I'm in far better emotional and mental health, as my wife and look forward to a comfortable retirement.

2) If he promoted a dishonest company that ripped off its clients, he is liable for their losses. It's not like a baseball player advertising a beer brand. Ramsey was trusted as a financial advisor and his advice about time share was taken by his listeners as professional advice, not advertising for which he was paid. I'd be glad if the people damaged by his advice were made whole.

3) They won't be of course. Not in a class action lawsuit. Class action lawsuits are enrichment schemes for trial lawyers. They will get millions in contingency fees and pass on pennies on the dollar for their losses, after deducting for expenses. Judges to whom the mass tort lawyers make maximum campaign donations will rubber stamp the compensation plan if they win the case.

 

[pknopp]

Three thoughts:

1) I found his advice very good at a time when I was struggling with debt more than twenty-five years ago. I am in far, far better financial shape having taken his relatively simple advice that I had not heard anywhere else. Therefore, I'm in far better emotional and mental health, as my wife and look forward to a comfortable retirement.

2) If he promoted a dishonest company that ripped off its clients, he is liable for their losses. It's not like a baseball player advertising a beer brand. Ramsey was trusted as a financial advisor and his advice about time share was taken by his listeners as professional advice, not advertising for which he was paid. I'd be glad if the people damaged by his advice were made whole.

3) They won't be of course. Not in a class action lawsuit. Class action lawsuits are enrichment schemes for trial lawyers. They will get millions in contingency fees and pass on pennies on the dollar for their losses, after deducting for expenses. Judges to whom the mass tort lawyers make maximum campaign donations will rubber stamp the compensation plan if they win the case.

All depends on the number in the lawsuit. All the same, Ramsey gets exposed so that is a good thing.

 

[multivita-man]

He gives advice one can get in a high school economics class.

Agreed, and yet people somehow stupidly take out a half million dollars to enter PhD programs in 13th Century Romanian literature, subscribe to Netflix & Prime, shop at Whole Foods when they could shop at Aldi, and then use credit cards to pay for fancy dinners and movie nights. Sorry, but stupid is stupid. And then they are the ones who come to him for advice.

 

[Synthaholic]

I don't agree with Ramsey's political stances and preaching but a lot of his basic advice is spot-on, IMO.

There's always a caveat emptor when taking someone's advice.

I've only heard him a few times (I had never heard of him until daveman once accused me of stealing a catch-phrase from him. ) but his basic schtick/advice seems to be: get out of debt. BRILLIANT!!!

 

[multivita-man]

All depends on the number in the lawsuit. All the same, Ramsey gets exposed so that is a good thing.

I've almost always agreed with his takes. Same with Suze Orman and Ed Slott. Good advice is good advice.

 

[multivita-man]

I've only heard him a few times (I had never heard of him until daveman once accused me of stealing a catch-phrase from him. ) but his basic schtick/advice seems to be: get out of debt. BRILLIANT!!!

And yet surprisingly, so many people don't do it.

I agree, nothing really brainiac about it but I think there's something to be said for the "gurus" who teach simplicity and sort of kill the idea that you have to have stuff, a degree, or whatever to be fulfilled. I feel the same about Mike Rowe. Disagree with his political ruminations but I like the fact that he's out there saying to people, "You don't need to blow $100,000 on some degree to join the middle class." Just get a skill and join the middle class.

And I'm not denigrating higher education. I'm a product of it and worked in it off/on for about 15 years. Education, in and of itself, is a wonderful thing. It makes a man/woman more interesting. But higher-ed and the mainstream media also lie to people. They manipulate impressionable late-teen and early-20-somethings into believing that they're not really 'cultured' or 'professional' or 'middle class' until they have certain benchmarks, that usually involve departing with a shit-load of future salary.

 

[pknopp]

Agreed, and yet people somehow stupidly take out a half million dollars to enter PhD programs in 13th Century Romanian literature, subscribe to Netflix & Prime, shop at Whole Foods when they could shop at Aldi, and then use credit cards to pay for fancy dinners and movie nights. Sorry, but stupid is stupid. And then they are the ones who come to him for advice.

And he leads them astray.

 

[okfine]

Before you put some trust in a financial advisor you should do a simple search on them.
Who knows, the person handling your money may be in the FINRA database.

What We Do | FINRA.org

FINRA plays a critical role in ensuring the integrity of America’s financial system—all at no cost to taxpayers. Working under the supervision of the Securities and Exchange Commission, we:

www.finra.org

 

[MarathonMike]

He gives advice one can get in a high school economics class.

There is no school in the country that teaches money and debt management. Dave Ramsey has helped countless people get out of debt. That is not disputable.

 

[candycorn]

I don't agree with Ramsey's political stances and preaching but a lot of his basic advice is spot-on, IMO.

There's always a caveat emptor when taking someone's advice.

Agreed. I'm a graduate of his program. His political stances are flat out stupid but the advice is 100% correct. It takes discipline and will power.

I don't know the details of the case but I doubt he gave any advice that would be actionable. We'll see what happens.

One thing is for sure...he'll now sell a ton of books and videos about "what to do when you get sued"....watch.

 

[candycorn]

He gives advice one can get in a high school economics class.

This may be true. I took high school economics. I don't recall getting the same advice about the emergency fund, the six months of expenses, debt snowball, etc... however.

A lot of it is basically asking yourself hard questions and facing a harsh truth about money. "You don't really need _______." 98% of the time. By the same token, the trip I made on a whim to Key West with my late spouse, the time I drove through South Dakota on the way to nowhere after they died when there was sunflowers as far as the eye could see on both sides of the Interstate... the trip up to Baltimore after Christmas one year; none of it made financial sense and was done in a way that wasted a serious chunk of money. I wouldn't trade any of them for that money I spent.

I get the feeling that if someone were to live the Ramsey lifestyle to the max; they would be more likely to self-harm at some point. There is a balance that everyone should find.

 

[odanny]

I don't like his self-promotion and constantly hawking his products. I tune in only to hear from the occasional financial train wreck.

 

[progressive hunter]