Poinbank Exchange|Dave Ramsey faces $150 million lawsuit for promoting company accused of fraud

Dave Ramsey,Poinbank Exchange a Christian radio host and personal finance guru, faces a $150 million lawsuit filed by some listeners of his show who allege they were defrauded by a timeshare exit company that advertised on his program. 

The suit, filed in the U.S. District Court for the Western District of Washington in April, claims Ramsey received more than $30 million between 2015 to 2021 to promote Timeshare Exit Team on The Ramsey Show. The Washington state-based company, which now operates as Reed Hein & Associates, allegedly promised to help customers terminate their timeshare contracts, which are notoriously difficult to exit. 

Reed Hein charged between $4,000 and $72,000 for "illusory services," according to the complaint, which alleges customers paid a total $70 million in fees for people to be released from their timeshares. The suit said Timeshare Exit Team failed to help customers and instead employed "false statements and delay tactics" to "stave off the customers' realization that they were being defrauded."

The complaint also alleges Ramsey promoted "deceptive, false and incomplete information," in violation of consumer protection laws, while personally earning $450,000 a month from the deal. The litigation names the radio star's company, Ramsey Solutions, and his marketing company, Happy Hour Media Group, as defendants. 

Neither Ramsey nor his company replied to CBS MoneyWatch's request for comment.

Timeshare Exit Team shut down in 2021 after agreeing to pay $2.6 million in a settlement over its "deceptive promises," Washington State Attorney General Bob Ferguson said at the time.

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• Fraud