Dave Ramsey, the finance guru radio host who offered millions of people advice for managing their debts, is now being sued for $150 million dollars by some of those same listeners.
As reported first by ReligionNews, former fans of Ramsey’s are suing him and his company, along with a marketing firm, saying they were defrauded by Timeshare Exit Team, who Ramsey often endorsed.
Seventeen plaintiffs filed the class-action lawsuit in the U.S. District Court for Western Washington in April, saying they were scammed out of millions by following Ramsey’s advice, a man who vehement and frequently spoke about his hatred for timeshare companies.
Former Ramsey listeners stated they were not aware he was being paid $30 million between 2015 to 2021 to promote the timeshare group, promising listeners a way out of their timeshare burdens.
“Ramsey has gained the trust of millions of followers through his long-running radio show, conferences and “Financial Peace University,” a faith-based personal finance program taught in churches around the country,” wrote ReligionNews. “His expertise, the complaint alleges, should have made him aware that Timeshare Exit Team was not to be trusted.”
Clients were allegedly charged $5,000 each by Timeshare Exit Team in order to cut ties with their timeshares, while some clients were charged up to $72,000. The promise was they would get their money back once free from the timeshare grip.
In total, the lawsuit claims the firm collected around $200 million from clients.
Ramsey, Timeshare Exit Team and the Happy Hour Media Group, a marketing firm with connections to Brandon Reed, one of the founders of Timeshare Exit Team, are accused of violating the Washington Consumer Protection Act. The lawsuit alleges that they are guilty of defrauding customers, committing “negligent malpresentation,” “unjust enrichment” and conspiracy.
Timeshare Exit Team went out of business in 2022.
The 17 unnamed plaintiffs in the lawsuit are seeking damages in excess of $150 million.