Christian financial advisor Dave Ramsey sued for $150 million over timeshare-exit company endorsement

 

Washington, Douglas, and Roseanne Morrill formulated a plan to embark on a global journey. They purchased credits from a vacation ownership company to facilitate their travels, only to realize later that it was a regrettable decision.

Roseanne Morrill, an avid follower of Dave Ramsey's radio show, renowned for his financial guidance from a Christian perspective, stumbled upon an episode where he exposed the pitfalls of timeshares. Ramsey mentioned a singular solution to escape their timeshare commitments: the Timeshare Exit Team. He assured them that if the team failed to relieve them of their financial obligations, a complete reimbursement would be granted.

Convinced by Ramsey's endorsement, they reached out to the Bellevue, Washington-based company, which demanded a hefty sum of $40,000 for their services. The Morrills complied and made the payment.

However, they found themselves trapped in their timeshare agreement with no resolution in sight. Regrettably, they never received the promised refund. Simultaneously, it came to light that Ramsey had received substantial compensation from the Timeshare Exit Team for promoting their services on his radio show, podcasts, and financial courses. Additionally, he obtained a share of the fees the company collected from the customers he referred. These revelations emerged through a recently filed lawsuit, initially reported by the Religion News Service.

Joined by 15 others, the Morrills filed a lawsuit against Dave Ramsey and his company, formerly known as the Lampo Group and presently named Ramsey Solutions. They sought $150 million in damages, alleging negligent misrepresentation, unjust enrichment, and violation of consumer protection laws. The lawsuit, filed in late April, was submitted to the U.S. District Court for the Western District of Washington, the jurisdiction where the Timeshare Exit Team operated.

Each plaintiff, having paid substantial amounts to the Timeshare Exit Team based on Ramsey's recommendations, argued that Ramsey either knew or should have known better than to endorse the company. Moreover, they accused Ramsey of deceptive advertising by failing to disclose his compensation for the endorsements and misrepresenting the advertisements as genuine advice.

During the period from 2015 to 2021, the Timeshare Exit Team, operating under the name Reed Hein and Associates, remunerated Ramsey for instructing his listeners to engage their services. Ramsey, referring to them as "legal specialists," aimed to assist individuals in terminating their timeshare contracts.