Christian radio host Dave Ramsey sued over timeshare fraud claims
Christian finance guru Dave Ramsey has been sued over a failed company that promised to free its customers from their timeshare obligations, according to a report.
The class-action lawsuit alleges the Washington-based Timeshare Exit Team collected $200 million from clients, with $30 million allegedly going to Ramsey, who promoted the company on his radio show, but defrauded customers through “negligent malpresentation,” reported Religion News Service.
The suit brought by 17 customers say they relied on Ramsey, who often talks about his disdain for timeshare accommodations, for advice on getting out of their burdensome contracts, and the complaint alleges that he continued to promote the company even after concerns were raised about possible fraud -- which he suggested was part of a conspiracy against parent company Reed Hein & Associates LLC.
“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.
The suit alleges that Reed Hein told customers to stop paying their timeshare fees and created fake property deeds to falsely suggest they were free of their commitment.
“When customers finally discovered the schemes and demanded their refunds, Reed Hein fabricated excuses not to honor the promises or stopped returning their calls,” the complaint says.
The lawsuit seeking more than $150 million names Ramsey, Timeshare Exit Team and Happy Hour Media Group as defendants.