Dave Ramsey’s Advice on Trial: Why His Listeners Are Suing Him For $150 Million
For years, Dave Ramsey touted, endorsed, and advertised Timeshare Exit Team’s services as a trusted company that his followers could turn to when they no longer wanted their vacation ownership. These listeners didn’t know that he was being paid approximately $30 million to recommend this company’s services.
His Endorsement of Timeshare Exit Team In His Own Words
“Timeshare Exit Team, it’s the only people we endorse for getting you out of your timeshare because it works!” Ramsey said. They charged most people an upfront fee between $3,000 and $9,000 and offered a 100% money-back guarantee.
Some of his listeners trusted Dave’s advice so much they paid $40,000 to Timeshare Exit Team for their services but got nothing in return.
But The House of Cards Fell at Timeshare Exit Team
After a lawsuit by the State of Washington, an Inside Edition investigation, a Better Business Bureau “F” rating, and hoards of complaints, Timeshare Exit Team closed, taking outstanding cases and Dave Ramsey listeners’ hard-earned money with them.
His tone completely changed when the State of Washington probed him on his connection as part of their Timeshare Exit Team lawsuit.
What Dave Said In Court Documents
Despite Timeshare Exit Team being at one time listed under the heading of “Dave Recommends” on his website, he didn’t personally research the company and its services.
“I have had no direct insight into Reed Hein’s operations, representations to its customers, or any other aspects of its business,” Ramsey said in court documents. “Again, others on my team are responsible for the details of the endorsement relationship, and I act based on their recommendations and advice.”
But Dave Ramsey Said in a Press Release He Trusted Timeshare Exit Team
In a 2015 press release, Dave Ramsey said, “After years of being asked how to get out of timeshares, I’m excited to announce that we finally found a company I trust to help my listeners get rid of this horrible product. Timeshareexitteam.com has a 100% guarantee that they will get you out, or you get every bit of your money back! These are the folks that I trust.”
Now Those Who Followed His Advice Are Suing Him for $150 Million
Sixteen people who followed his advice and hired Timeshare Exit Team are suing Dave Ramsey and his company, the Lampo Group, now known as Ramsey Solutions. Their lawsuit accuses both parties of negligent misrepresentation, unjust enrichment, and violating consumer protection laws.
Dave Didn’t Disclose the Details of His Arrangement With Timeshare Exit Team
The lawsuit alleges that Dave misrepresented his remarks as bona fide advice when it was really a paid endorsement that he didn’t disclose. It wasn’t clear to listeners that from 2015 to 2021, Timeshare Exit Team paid Ramsey to instruct his listeners to hire them as legal specialists.
But it turned out that the founders of Timeshare Exit Team had no legal expertise.
So Who Exactly Was Timeshare Exit Team?
In 2012, Brandon Reed and Trevor Hein, at the time rain gutter salesmen, formed Reed Hein and Associates, LLC. Despite never working in the industry, they began selling “expert” services to end vacation ownership contracts as Timeshare Exit Team.
They began advertising with Dave Ramsey’s media company in 2015, and their business exploded. “When we went from radio and local endorsements to Dave Ramsey, it’s like poof, the roof. We went from thousands to tens of thousands of customers,” Rein Hein said in court documents.
But Listeners Regretted Following Dave’s Advice
Timeshare owners felt comfortable handing over thousands and even tens of thousands of dollars to Timeshare Exit Team because they trusted Dave Ramsey’s recommendation. Unfortunately, the Washington State Attorney General’s stack of consumer complaints tells a tragic story of Dave Ramsey’s followers repeatedly regretting their decision to trust this company.
Two Tales of Those Who Hired Timeshare Exit Team
One owner of a Branson timeshare filed a complaint with Washington State after they gave $11,000 to Timeshare Exit Team, and two years later, they still had their timeshare. They hired these services because they “…put {their} faith in Dave Ramsey’s glowing recommendation of the company.” But, because Timeshare Exit Team said they were still working on the case, they insisted the money couldn’t be refunded.
A May 2020 complaint report outlined another similar tale. “My experience with Timeshare Exit Team has not been a positive one. I signed with them on 1/28/2018 and paid $5136.15 for their services. Three reasons I used Timeshare Exit was I desperately wanted out of my Wyndham Time Share, the money-back guarantee, and the endorsement of Dave Ramsey,” notes from the filer explained.
Timeshare Exit Team Fooled a Lot of People
Despite their advertisements, Reed Hein had no expertise in ending timeshare contracts, and customers eventually figured this out. But, according to Washington State’s lawsuit, since 2012, they have “unfairly and deceptively contracted with more than 32,000 consumers looking to be rid of their unwanted timeshares and have collected millions of dollars in upfront fees from consumers in the process.”
What If Timeshare Exit Team Still Has Your Money?
After the lawsuit, Timeshare Exit Team closed its doors. Washington’s Attorney General is asking those affected to contact them and posted these instructions on their website.
“If Reed Hein’s timeshare exit scheme impacted you or your family, please contact us by email at [email protected] to be notified when the claims process begins. The Attorney General’s Office will also proactively reach out to Reed Hein customers when the claims process is finalized using the contact information it received from Reed Hein.”
It’s A Warning To All Dave Ramsey Followers and Listeners
So if you don’t own a timeshare but listen to Dave Ramsey’s advice, you might want to think twice about using the services, companies, and products he recommends. Take time to research them for yourself before deciding and handing over your hard-earned money.
If You’re a Timeshare Owner, Here’s How To Exit Your Timeshare Without Getting Scammed: 3 Options
Don’t fall prey to similar timeshare exit scams and companies trying to take advantage of timeshare owners. There is no need to pay a company thousands of dollars for something you can handle yourself safely and securely.
1. Use The Cooling Off Period
If you just bought a timeshare and have second thoughts, you can cancel your contract and get all your money back if you’re within your rescission period. Depending on state law, you have 3-15 days to contact the resort and file a rescission letter to cancel your timeshare.
Timeshare Users Group (TUG), the oldest and largest owners group and advocacy organization, reports that people, on average, save $18,000 by writing a letter and sending it to the timeshare resort during this window.
2. Take Advantage of Deedback Programs
If you own your timeshare free and clear, many timeshare resorts and chains will allow you to deed it back to them. Why pay a company thousands of dollars when most owners take care of ending their ownership themselves with a phone call. Get started at the Timeshare Industry Association Responsible Exit website, which guides people through the deedback process.
3. List It on the Resale Market Without A Realtor
There are trusted, reputable resale marketplaces to list paid-off timeshares for as low as $15. You can research the current market value of your timeshare ownership, list it for sale and find a buyer in one place.
TUG, Redweek, and Timeshares Only are highly rated by The Better Business Bureau and millions of timeshare owners. TUG has successfully sold or rented $55 million worth of timeshares since they opened their doors in 1993, timeshare owners have trusted Redweek for over 20 years, and Timeshares Only has an A+ BBB rating.
If You’re A Timeshare Owner in a Temporary Tough Time, Considering Renting It Out
If you’re an owner looking to exit a timeshare because you can’t currently use yours but would like to continue owning, short-term options are available to get you through a difficult period, like job loss.
Consider renting your timeshare out to others, banking your week with an exchange company to save it for another vacation 1-2 years from now, or trade your week for another holiday at a resort closer to your home.
An Owner’s Guide To Successful Timeshare Rentals: 6 Options with Their Pros and Cons
If you haven’t looked into timeshare rentals before, today’s options can seem overwhelming. Add into the mix uncertainty around which sites to trust and how to protect yourself, and you might be thinking about staying away from timeshare rentals altogether!
But what if I told you that timeshare rentals are a $2 billion+ annual business in the United States alone? With 92% of timeshare resorts offering some type of rental program, most timeshare owners today have options to generate real money to cover their timeshare bills.
An Owner’s Guide To Successful Timeshare Rentals: 6 Options with Their Pros and Cons
Are Timeshares a Scam? Here’s The Surprising Answer
John Oliver recently roasted timeshares, calling them a scam. His segment is consistent with a recent survey where in a word-association exercise, 62% of survey participants think “scam” or “rip-off” as the first thing that comes to mind about timeshares.
60% of people recently surveyed had little to no knowledge of timeshares, yet 77% would not consider owning a timeshare. Why is that?
Are Timeshares a Scam? Here’s The Surprising Answer
Beware of These 5 Timeshare Scams Actively Targeting Owners
When approximately 850,000 people are looking to get rid of their timeshare, the sharks see a business opportunity to take advantage of owners, especially seniors. Unfortunately, it can be challenging to determine who is trustworthy and who isn’t to rent out or sell your timeshare. So, keep your wallet closed, trust your gut, and ask for everything in writing.
Beware of These 5 Timeshare Scams Actively Targeting Owners
What Is a Timeshare? A Happy Owner Explains All You Want to Know About Timeshares in 2023
What if you could learn about timeshares from someone who isn’t trying to sell you anything. From someone who has owned one for more than 15 years. I’ll give you real talk on What is a Timeshare, How to Buy One With Dollars and Sense for 75 to 99% Off, How to Hack It, and How to Get Rid of One Without Getting Scammed when you no longer want to own it.
If you want to know why I believe the world is my travel oyster and how we vacation multiple times a year in upscale resort condos this article is for you!
What Is a Timeshare? A Happy Owner Explains All You Want to Know About Timeshares in 2023
Airbnb Demand is Down and Hotel Suites Are Scarce; Here’s Why Timeshares Are Flourishing
The rise of affordable short-term rental vacations in the past 15 years has changed how people travel. They’ve grown accustomed to the space and conveniences of homes or condos and no longer prefer to stay in a traditional single-room hotel unit. However, in 2023, Airbnb’s total rental cost is no longer always cheaper than a hotel room, and travelers increasingly crave the amenities, security, and consistency of resorts.
These changing preferences are driving hotels to update their room offerings. Still, they can’t create suites or connecting rooms fast enough to meet demand. So travelers are turning to surprising resort-type that’s already built this way – timeshares.
Airbnb Demand is Down and Hotel Suites Are Scarce; Here’s Why Timeshares Are Flourishing