The radio host and author Dave Ramsey spent many hours promoting a company that promised people an easy way out of their time-share obligations and was paid substantially in the process.
Ramsey now finds himself in the middle of a $150 million lawsuit.
The suit involves a connection between Ramsey and Reed Hein & Associates, a company that pledged to get time-share participants out of their deals.
“For fees ranging from $4,000 to $72,000, Reed Hein promised to relieve or ‘exit’ customers of their timeshare obligations, according to the complaint, which was filed at the end of April in U.S. District Court in Seattle,” Investment News reported on June 5. “The Dave Ramsey listeners are seeking $150 million in damages.”
Reed Hein, also referred to as Timeshare Exit Team, is no longer in business. Ramsey stopped taking money from the company when it ended its payments to the personal-finance personality.
It had previously settled with the state of Washington, saying it would end what the state’s attorney general called its “deceptive” time-share exit practices and pay $2.61 million to the state.
“From 2015 to 2021, Reed Hein paid Dave Ramsey and (his company) The Lampo Group to make false claims and instruct Ramsey’s faithful listeners to hire Reed Hein,” the lawsuit complaint said, according to Investment News.
“By 2021, Ramsey’s promotions drove Reed Hein’s revenue from less than [$1 million] per year to more than $40 million per year. For his efforts, Reed Hein is believed to have paid Ramsey $450,000 per month, totaling greater than $30 million.”
Ramsey Solutions did not immediately respond to a request for a comment.
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