Former followers are suing finance guru Dave Ramsey for $150 million over his endorsement of a failed timeshare exit company that defrauded customers out of millions of dollars.
The lawsuit alleges that Timeshare Exit Team, which collected $200 million from clients, including Ramsey listeners, and promised to release them from their timeshare obligations. The promise also included a money-back guarantee. Timeshare Exit Team previously faced legal trouble after Reed Hein & Associates. which did business with the company, paid $2.61 million to settle a misleading business lawsuit by Washington Attorney General Bob Ferguson. The firm, which was started by two men who installed guttering and had no time-share experience, eventually went out of business.
During a 2018 segment of The Dave Ramsey Show, Ramsey told listeners about the Timeshare Exit Team and spoke positively about the company. “I never could find anything until I found this company called Timeshare Exit Team,” he said at the time. “About three years ago, we started endorsing them, and I’ve had so much fun pissing off the timeshare people.”
The plaintiffs in the lawsuit said they trusted Ramsey’s support of the Timeshare Exit Team, even though he has criticized similar companies in the past. Despite the company’s legal troubles, Ramsey remained steadfast in his endorsement and accused government officials, reporters and the timeshare industry of conspiring against them.
The owner of a Branson timeshare filed complaint and provided evidence to Washington State after the couple forked over $11,000 to Timeshare Exit Team because they “…put {their} faith in Dave Ramsey’s glowing recommendation of the company.” After two years and no progress, the couple asked for their money back but were told the company was still working on it and could not make the refund.
Another complaint was lodged in 2020 alleging fraud. “My experience with Timeshare Exit Team has not been a positive one. I signed with them on 1/28/2018 and paid $5136.15 for their services. Three reasons I used Timeshare Exit was I desperately wanted out of my Wyndham Time Share, the money-back guarantee, and the endorsement of Dave Ramsey,” notes from the filer explained.
“Instead of acknowledging the deception, Ramsey recorded a nine-minute radio segment in which he lashed out at anyone he felt to be responsible for Reed Hein’s woes,” the complaint alleges.
Ramsey stated he never endorsed the company and that his staff were responsible. “I have had no direct insight into Reed Hein’s operations, representations to its customers, or any other aspects of its business,” Ramsey said in court documents. “Again, others on my team are responsible for the details of the endorsement relationship, and I act based on their recommendations and advice.”
The lawsuit also highlights the firm’s deceptive practices, such as telling customers who signed their contracts to no longer pay their timeshare fees and fabricated fake property deeds to convince those customers they were free of their timeshares. Happy Hour Media Group also was named in the lawsuit after allegedly endorsing the Timeshare Exit Team. Brandon Reed, who cofounded Happy Hour, also cofounded Timeshare Exit Team.
–Alan Goforth | Metro Voice
Editor’s Note: Metro Voice on occasion runs columns by Dave Ramsey and his staff.
