A group of former followers of finance guru and radio host Dave Ramsey, along with his company and a marketing firm, have filed a lawsuit against them. The lawsuit alleges that Ramsey endorsed a timeshare exit company that defrauded customers out of millions of dollars.
According to Religion News Service, seventeen former Ramsey listeners have come together to file a class-action lawsuit in the U.S. District Court for Western Washington. According to the lawsuit, Ramsey allegedly received payments of up to $30 million between 2015 and 2021 to endorse the Kirkland, Washington-based firm called Timeshare Exit Team.
This firm, which many Ramsey listeners were customers of, collected a total of $200 million from clients. In return for payment, the company promised to help clients escape their timeshare obligations and offered a money-back guarantee. However, the lawsuit alleges that these promises were not fulfilled, resulting in customer financial losses.
However, despite charging customers over $5,000 each, the company failed to fulfill its promises. In 2021, Reed Hein & Associates LLC, operating as Timeshare Exit Team, settled a lawsuit filed by the attorney general of Washington state, accusing them of deceptive business practices. The settlement amount was $2.61 million, and subsequently, the company ceased operations.
According to the lawsuit, Dave Ramsey, Timeshare Exit Team, and Happy Hour Media Group, a marketing firm linked to Brandon Reed, one of the founders of Timeshare Exit Team, violated the Washington Consumer Protection Act. The plaintiffs allege they were defrauded, citing “negligent misrepresentation,” “unjust enrichment,” and conspiracy. The lawsuit is seeking damages exceeding $150 million.
The plaintiffs claim that they relied on Dave Ramsey’s enthusiastic endorsement of the Timeshare Exit Team and his financial expertise when they decided to engage with the company.
Renowned for his strong disdain towards timeshare companies, Ramsey proudly expressed his trust in the expertise of the Timeshare Exit Team. During a segment of his show in 2018, a video of which can still be found on “The Ramsey Show” YouTube page, Ramsey declared to his listeners that he had spent years searching for a company capable of helping individuals escape timeshares.
“I could never find anything until I stumbled upon this company called Timeshare Exit Team,” he stated in the segment, enthusiastically highlighting the company’s money-back guarantee. “About three years ago, we started endorsing them, and I’ve thoroughly enjoyed frustrating the timeshare people.”
Despite the company’s legal issues and the accusations of defrauding customers, as previously reported by Religion News Service, Ramsey remained steadfast in his support, asserting that government officials, reporters, and the timeshare industry had conspired against Timeshare Exit Team.
“Rather than acknowledging the deception, Ramsey recorded a nine-minute radio segment in which he vehemently criticized anyone he deemed responsible for Reed Hein’s difficulties,” states the complaint.
Through his enduring radio show, conferences, and the faith-based personal finance program known as “Financial Peace University,” Ramsey has garnered the trust of millions of devoted followers. However, according to the complaint, his extensive expertise should have alerted him to the fact that Timeshare Exit Team was an untrustworthy entity. This assertion is based on the premise that Ramsey’s knowledge and experience in personal finance should have allowed him to recognize the dubious nature of the Timeshare Exit Team.
Greg Larson, a shipyard worker, and devoted listener of Ramsey, is one of the plaintiffs mentioned in the complaint. Larson had heard Ramsey endorse Timeshare Exit Team “hundreds of times” before reaching out to the company. Other plaintiffs include healthcare professionals, retirees, and individuals who became followers of Ramsey through their churches or his radio show.
The complaint provides a comprehensive account of the association between Ramsey and the Timeshare Exit Team. The latter is categorized as one of the “endorsed local providers” who heavily rely on Ramsey for generating business leads. Ramsey Solutions collects these leads through various channels, such as church-based programs, the company’s website, and newsletters.
