Ramsey blamed the high cost of various lawsuits from Washington state and the timeshare industry as the reason why Timeshare Exit Team is no longer an advertiser on his platform.
Beloved by financial advisers who do business with his organization by paying for potential client leads, Dave Ramsey stepped into some controversy last year when an advertiser who promised consumers freedom from burdensome timeshare real estate contracts was sued by the state of Washington.
A widely popular radio host who preaches the gospel of debt-free living, Dave Ramsey on his website promotes a variety of financial services products, companies and professionals, including financial advisers. Advisers pay the advertising fee and are part of a website directory, called SmartVestor Pros.
Until recently, those companies included Timeshare Exit Team, which was the center of a 2020 lawsuit by Washington state Attorney General Bob Ferguson.
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The complaint, filed in February, alleges that Timeshare Exit Team, also known as Reed Hein & Associates, employed numerous unfair or deceptive business practices related to services to “exit” consumers’ timeshares.
On an episode of the Ramsey Show last Thursday, also posted on YouTube, Ramsey attributed the high cost of various lawsuits from Washington state and the timeshare industry as the reason why Timeshare Exit Team is no longer an advertiser.
Ramsey stated that the company has successfully assisted more than 20,000 consumers in exiting unwanted timeshare contracts, but it is now facing millions of dollars in legal fees and may be running out of cash.
Timeshare Exit Team “had to pull off of our show,” Ramsey said during a bromide about the timeshare industry that starts at about the 1:50 mark. “They couldn’t afford to advertise anymore.”
“They’re not out of business yet, but they’re having to defend themselves against the attorney general of the state of Washington, they’re having to defend themselves against a massive set of lawsuits brought time and time and time again,” Ramsey said.
“And all they have done is get people out of timeshares,” he said. “So, that’s why you don’t hear them on the air here anymore.”
The Washington state complaint mentions Ramsey and his various businesses several times, highlighting the Dave Ramsey Show as “Reed Hein’s most profitable endorsement.”
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A spokesperson for Washington state Attorney General Bob Ferguson said the complaint against Timeshare Exit Team is ongoing.
Brandon Reed, CEO of Timeshare Exit Team, did not return calls this week to comment. A spokesperson for Dave Ramsey also did not return messages.
Vacation real estate developers typically sell timeshares by the week, offering shared ownership of the property. Timeshare-exit businesses have recently proliferated as many consumers look to get out of the contracts, and that may increase due to consumers’ traveling less due to Covid-19 and looking for cash.
Article written By Bruce Kelly