Dave Ramsey, the renowned radio host and finance guru who provided guidance on debt management to millions of people, is now facing a major lawsuit filed by some of his former listeners. These individuals claim they were defrauded by Timeshare Exit Team, a company frequently endorsed by Ramsey, according to The Tennessean.
One such couple, Douglas and Roseanne Morrill, had dreams of traveling the world after running their family-owned pharmacy for four decades. To achieve this, they purchased timeshare points but later realized it was a regrettable decision. Roseanne, a devoted listener of Ramsey's Christian financial advice show, heard him discussing the pitfalls of timeshares. Ramsey offered a solution: the Timeshare Exit Team, promising a full refund if they couldn't help them escape their financial obligations.
Following Ramsey's endorsement, the Morrills contacted the Bellevue-based company and paid a hefty $40,000 for its services. However, they never managed to cancel their timeshare contract nor receive the promised refund. Meanwhile, Ramsey allegedly received millions of dollars from Timeshare Exit Team for endorsing the company on his radio show, podcasts, and financial courses. The lawsuit claims that Ramsey also received a share of the fees charged to the customers he referred.
The lawsuit alleges that Ramsey misled his listeners by failing to disclose his substantial financial arrangements with Timeshare Exit Team. It asserts that Ramsey earned $30 million between 2015 and 2021 from promoting the company, offering hope to listeners burdened by timeshares.
The lawsuit, filed against Ramsey, Timeshare Exit Team, and the Happy Hour Media Group, accuses them of violating the Washington Consumer Protection Act through fraudulent practices, negligent misrepresentation, unjust enrichment, and conspiracy. Timeshare Exit Team ceased operations in 2022, leaving numerous dissatisfied customers in its wake.
The 17 unnamed plaintiffs in the lawsuit seek damages exceeding $150 million. As this legal battle unfolds, Ramsey's reputation as a trusted financial advisor has come under scrutiny, with his listeners expressing disappointment and seeking accountability for the alleged poor financial advice provided.