One of the most popular radio hosts is Dave ramsey. He is known to promote a debt free life and has helped millions of people navigate personal finances. One of the investments he hates is timeshare. To be fair, most respected financial advisers also don’t like timeshares due to liquidity issues and lack of return. Which leads to how to quit timeshares.
Dave Ramsey recommended a timeshare exit service and financial advisors, which has some issues. Recently, it was reported that many financial advisors are doing business with Ramsey’s organization because they are paying for potential clients. It is unclear whether the auditors recommended to these financial advisers fully understand the relationship with Ramsey. Advisors call or email Ramsey’s listeners who are interested in his financial advice, so the speech may begin with something like, “Dave Ramsey is letting me know you want to speak to a financial advisor.”
From the perspective of a financial advisor (I’ve worked and helped manage advisers) who agrees with a lot of what Ramsey says, it’s been hard to see friends being recommended to inferior financial advisers. average because the advisor bought leads from Ramsey. spoke with a “licensed advisor” at a religious event, the advisor lacked basic investment and portfolio management knowledge.
It makes me wonder how these financial advisers were approved and Ramsey received some sort of commission? It turns out that Dave Ramsey’s deal with financial advisers falls into a gray area of SEC trust rules and solicits business.
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In 2015, Ramsey’s company donated $ 50,000 to the Missouri Education Fund and agreed to move from paying advisors to prospects to billing for advertising.
However, a complaint filed in February by the Washington Attorney General Bob Ferguson, a company known as Timeshare Exit Team, also known as Reed Hein & Associates, allegedly used numerous unfair and deceptive service-related marketing practices to exit timeshare customers. Prosecutors accuse Reed and Hein of offering a 100% money back guarantee. The Timeshares Exit team, listed on its website, has been touting the idea of removing consumers from real estate investments.
In fact, many consumers had difficulty getting a refund and couldn’t be reimbursed if the company didn’t deliver within a year.
In a video ad posted to the Timeshare Exit Team website, Ramsey paints a different picture of the company. Ramsey said he was initially skeptical about whether he would merge with a company involved in timeshare exits. We are very careful in our work.
Ramsey has been with the company for about three years and his radio show is broadcast by hundreds of stations across the United States. In 2017, Investment News reported that financial advisors benefited from the advice they received when signing up potential clients.
The consultants were part of a directory called SmartVestor Pros, and they paid advertising fees and received overtime for referrals ranging from $ 400 per month to almost $ 900 per month, depending on the number of referrals / referrals received. over a given period.
Ramsey and his various companies are not named in the complaint, but they are mentioned several times. The “Dave Ramsey Show” website does not list how many Ramsey timeshare exit team requested approval for the show, and they weren’t mentioned in any of the complaints. Reed Hein also favored threatened or refused timeshare clients in favor of a more profitable client.
According to Washington State, Reed Hein has provided 38,000 timeshare outings and has consistently refused refunds. Unfortunately, there are 17,000 pending. Brandon Reed, CEO of Reed Hein & Associates, said in an email that he strongly disagrees with the complaint.
A spokeswoman for Dave Ramsey, Megan McConnell, did not respond to multiple calls and emails seeking comment.
Financial advisers who wish to continue doing business with Dave Ramsey should closely monitor the companies he supports and endorses.
Timeshare is shared ownership and is typically sold on a weekly basis, but exit deals have risen sharply lately with many consumers opting out of their contracts, according to a recent report from the National Association of Realtors.
Currently, there is no license for companies or individuals to take people out of timeshare contracts. However, financial advisers and brokers should be careful not to be accidentally involved in the sale of products and / or services not covered by their practice.