“Criticizing lawyers for lawsuits is like criticizing linebackers for knocking people down.” Dale Dauten
There was money to be made, and it appears Ramsey made it.
The Washington Post posted Dave Ramsey promoted a timeshare quick-fix. His listeners called fraud. Ramsey, in his bombastic on-air persona, said about this company, Timeshare Exit Team:
“I never could find anything until I found this company called Timeshare Exit Team about three years ago,” he said in a December 2018 segment. “We started endorsing them, and I’ve had so much fun” bothering timeshare companies, he said.
And so, his listeners probably based their hopes on a Ramsey “certified” solution. I have listened to his show, and he sure believes he can solve one’s “money” problems. As always, Ramsey profits from his show, his programs for churches, and his endorsed products. I’m talking big money. His net worth is estimated to be $200 million. I would not be shocked if he were worth more.
17 of the podcast and radio host’s listeners have filed a $150 million lawsuit against him, alleging that he played a role in defrauding them of millions of dollars when he promoted a timeshare-exit company that did not get them out of their contracts.
Ramsey was allegedly paid as much as $30 million from 2015 to 2021 to endorse Timeshare Exit Team, which collected $200 million from clients — many of whom were his listeners
And now, a group of 17 listeners has sued him.
The lawsuit from 17 listeners in Washington state and California, which was filed April 28 in U.S. District Court for the Western District of Washington, is seeking $150 million in damages. The Ramsey listeners said the host engaged in negligent misrepresentation, unjust enrichment and violation of consumer protection laws when he promoted the company that cost his listeners while he profited from their financial heartacheI
Religion News Services posted Dave Ramsey sued for $150 million by former fans who followed his timeshare exit advice. There was a promise that the advice worked; if not, there was a money-back guarantee! I love money-back guarantees when they are in writing. There is a problem. The company didn’t appear prepared to make good on its guarantee.
It promised customers a 100% money-back guarantee, but how was it going to pay that?” Albert said. “There was no trust account. No reserve account.
Ramsey alleged a grand conspiracy.
Ramsey stuck by the company, despite its legal troubles and allegations it had defrauded customers — claiming government officials, reporters and the timeshare industry had conspired against them.“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.
In 2018, he was still endorsing the company. The vidoe is still up and running.
One story of fraud.
ClutchPoints posted that listeners sued Dave Ramsey for $150M due to poor financial advice. Here is what is alleged to have happened to one older couple.
Roseanne, a devoted listener of Ramsey’s Christian financial advice show, heard him discussing the pitfalls of timeshares. Ramsey offered a solution: the Timeshare Exit Team, promising a full refund if they couldn’t help them escape their financial obligations.
Following Ramsey’s endorsement, the Morrills contacted the Bellevue-based company and paid a hefty $40,000 for its services. However, they never managed to cancel their timeshare contract nor receive the promised refund.
Timeshare Exit Team is now kaput, and that’s bad news for those who trusted Ramsey and his endorsed company.
According to Planner at Heart in Dave Ramsey Endorsed Timeshare Exit Team Closed After Lawsuit; Don’t Fall Prey to Similar Companies
After a lawsuit by the State of Washington, an Inside Edition investigation, a Better Business Bureau “F” rating, and hoards of complaints, the Timeshare Exit Team has closed, taking outstanding cases and people’s hard-earned money with them.
…according to Washington State’s lawsuit, since 2012, they have “unfairly and deceptively contracted with more than 32,000 consumers looking to be rid of their unwanted timeshares, and have collected millions of dollars in upfront fees from consumers in the process.”
…Despite their advertisements, Reed Hein had no expertise in ending timeshare contracts, and customers eventually figured this out. But, according to Washington State’s lawsuit, since 2012, they have “unfairly and deceptively contracted with more than 32,000 consumers looking to be rid of their unwanted timeshares, and have collected millions of dollars in upfront fees from consumers in the process.”
Ramsey was known for his disdain for the Timeshare business.
Church Leaders posted Dave Ramsey declares war on timeshare industry: ‘You done pissed off the wrong hillbilly.‘
In a recent episode of his talk show titled “Timeshare Companies Are The Last Legal Fraud in America,” the Christian financial guru and radio host spent an hour ranting about what he called the “scummy” timeshare industry and berating anyone “stupid” enough to buy into the real estate ventures, which allow consumers to buy several weeks’ annual residence in a home, usually in vacation spots
In my opinion, it was his bombastic, “I’ll get you,” finger waving and pointing that led his many followers to believe he would do something about this. I share his disdaind for timeshares but have great empathy for those who were talked into this “deal of a lifetime.”
…Reporters from the television newsmagazine “Inside Edition” have also earned Ramsey’s ire by attempting to interview him during a recent event about his ties to the company. Ramsey claimed the reporters had “ambushed him.”
“I’ll answer your question, why did I endorse Timeshare Exit Team?” he said. “Because they were doing the right thing and getting people out of timeshares after companies like Mikey’s had screwed them. That’s why I endorsed that company and I did it with great pride.”
Then Ramsey issued a warning.
Saying that he was broadcasting from a paid-off building worth hundreds of millions of dollars and is “neck-deep in cash,” Ramsey seemed to promise to fight back against Diamond and other timeshare companies.
“You have done poked the wrong bear,” he said. “You done pissed off the wrong hillbilly.”
The “hillbilly” changes his tune.
I hate it when rich guys living large try to pretend they are just one of the boys. He had to hide behind his momma’s skirts and say, “They did it. Not my fault!”Planner at Heart presents this later non-mea culpa by Ramsey
“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.”
Pro advice: Never, ever work for a guy who claims he is a big authority and then blames the problem on his team, the little guys.
So here is my warning:
If he screwed this up, what else does he screw up? Some of his financial advice is fine. Some of it isn’t, in my opinion. Be smart and get a second point of view. Never buy a Timeshare unless you have plenty of money and want to do so. If so, seek a mental health opinion before signing.
Finally, Clark Howard was the nicest financial advisor I had ever heard of. I loved the way he answered the call.” How can I serve you?” As far as I know, he is not an evangelical, but maybe I’m wrong. He works building homes with Habitat for Humanity and raising money to fight cancer in children. Here is a link to Wikipedia. I think I’ll start a new meme, “SwitchfromRamseyto Clark Howard.
PS Keep an eye out for the Title Lock thing.