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Dave Ramsey faces a $150 million lawsuit from listeners over his promotion of a timeshare exit group.
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Reed Hein supplied to get paying clients out of timeshare offers however typically failed to take action.
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Attorneys say Ramsey was paid $30 million to advertise Reed Hein over a interval of six years.
Christian radio host Dave Ramsey is dealing with a $150 million lawsuit from 17 listeners who declare he performed a task in defrauding them by selling a timeshare exit firm.
The lawsuit, filed in April in opposition to Ramsey and advertising firm Glad Hour Media Group within the Washington Western District Court docket, argued that the radio host promoted Timeshare Exit Staff to the monetary detriment of his listeners.
The swimsuit was first reported by Faith Information Service.
Ramsey offers monetary recommendation to tens of millions of listeners on his radio present utilizing teachings from the Bible. Listeners will name to ask for recommendation on managing their funds, with one couple in Could looking for assistance on their money owed of $760,000.
The swimsuit mentioned Ramsey was paid tens of millions to promote Timeshare Exit Staff, operated by Kirkland, Washington-based Reed Hein & Associates. Attorneys say Ramsey was paid $450,000 a month by Reed Hein for his providers, amounting to $30 million in complete.
Reed Hein promised to get clients out of timeshare agreements, however typically failed to take action, per the swimsuit.
In 2017, timeshare operators started launching profitable authorized motion in opposition to the corporate. In 2021 Reed Hein was ordered to cease its misleading practices, Washington State lawyer common Bob Ferguson mentioned, and pay $2.6 million for use for restitution for victims. The corporate later stopped buying and selling.
Every of the 17 plaintiffs within the April lawsuit say they paid 1000’s for Timeshare Exit Staff’s providers after listening to Ramsey’s promotions. They are saying they had been typically suggested to barter their very own settlements with their timeshare corporations, and often discovered it unimaginable to contact Reed Hein.
Ramsey promoted Reed Hein between 2015 and 2021, and solely ceased when the corporate stopped paying him, in accordance with the swimsuit. Throughout that point, it is claimed he obtained 1000’s of letters from listeners who mentioned they had been sad with the corporate’s providers.
Within the interval Ramsey promoted Reed Hein, it is argued the corporate obtained $70 million in charges from clients referred to it by the radio host.
Attorneys argue that as complaints mounted, Ramsey grew to become more and more combative about his hyperlinks to the corporate.
“As a substitute of acknowledging the deception, Ramsey recorded a nine-minute radio phase wherein he lashed out at anybody he felt to be answerable for Reed Hein’s woes,” the lawsuit acknowledged. These events included timeshare corporations and the Washington State lawyer common.
“Ramsey by no means returned any of the tens of tens of millions of {dollars} Reed Hein and Glad Hour Media Group paid him from his personal listeners’ hard-earned cash. As a substitute, Ramsey has chosen to revenue from his listeners’ cash,” legal professionals say.
Ramsey and Glad Hour Media Group did not instantly reply to requests for remark from Insider, made outdoors regular working hours. Faith Information Service additionally didn’t get responses from Ramsey or Glad Hour.
Learn the unique article on Enterprise Insider
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