Christian radio host Dave Ramsey faces $150 million lawsuit from listeners who say they were defrauded by a timeshare exit company he promoted
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Dave Ramsey is facing a $150 million lawsuit from listeners over his promotion of a timeshare exit group.
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Reed Hein offered to get paying customers out of timeshare deals, but often failed to do so.
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Attorneys say Ramsey was paid $30 million to promote Reed Hein over a six-year period.
Christian radio host Dave Ramsey is facing a $1[ads1]50 million lawsuit from 17 listeners who claim he played a role in defrauding them by promoting a timeshare exit company.
The lawsuit, filed in April against Ramsey and marketing company Happy Hour Media Group in Washington Western District Court, alleged that the radio host promoted the Timeshare Exit Team to the financial detriment of his listeners.
The suit was first reported by Religion News Service.
Ramsey provides financial advice to millions of listeners on his radio show using teachings from the Bible. Listeners will call in to ask for advice on how to manage their finances, with one couple in May seeking help with their $760,000 debt.
The suit said Ramsey was paid millions to advertise Timeshare Exit Team, run by Kirkland, Washington-based Reed Hein & Associates. Lawyers say Ramsey was paid $450,000 a month by Reed Hein for his services, a total of $30 million.
Reed Hein promised to get customers out of timeshare agreements but often failed to do so, according to the suit.
In 2017, timeshare operators began launching successful legal actions against the company. In 2021, Reed Hein was ordered to stop his deceptive practices, Washington State Attorney General Bob Ferguson said, and pay $2.6 million to be used in restitution for victims. The company later ceased trading.
Each of the 17 plaintiffs in the April lawsuit say they paid thousands for Timeshare Exit Team’s services after listening to Ramsey’s promotions. They say they were often advised to negotiate their own settlements with their timeshare companies and usually found it impossible to contact Reed Hein.
Ramsey promoted Reed Hein between 2015 and 2021, ceasing only when the company stopped paying him, according to the lawsuit. During that time, it is claimed he received thousands of letters from listeners saying they were unhappy with the company’s services.
During the period Ramsey promoted Reed Hein, it is claimed the company received $70 million in fees from clients referred to it by the radio host.
Lawyers allege that as the complaints mounted, Ramsey became increasingly combative about his links to the company.
“Instead of acknowledging the deception, Ramsey recorded a nine-minute radio segment in which he lashed out at anyone he felt was responsible for Reed Hein’s woes,” the lawsuit said. These parties included timeshare companies and the Washington Attorney General.
“Ramsey never returned any of the tens of millions of dollars Reed Hein and Happy Hour Media Group paid him from his own listeners’ hard-earned money. Instead, Ramsey has chosen to make money off his listeners’ money,” lawyers say.
Ramsey and Happy Hour Media Group did not immediately respond to requests for comment from Insider, made outside normal business hours. Religion News Service was also unable to get a response from Ramsey or Happy Hour.
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