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Debbie Dujanovic Reporting They promised to save Utahns thousands of dollars and shave years off their debts. Tonight, a debt elimation company faces more than a quarter million dollars in fines. An Eyewitness News investigation first uncovered the troubles inside Mascot Financial.
Our investigation uncovered more than 40 unhappy customers, but the State says there are far more than that. After our investigation hit air last month, they've heard from 200 more people.
About an 5:00 today, state consumer regulators slapped the Provo debt consolidation company with one of the largest fines in state history: 270-thousand dollars. Plus, they're filing a 100-thousand dollar claim with Mascot's insurance company.
All to pay back consumers who say they fell futher into debt and their credit scores tumbled after they signed up for the Mascot plan.
Francine Giani, Utah Department of Commerce: "Misrepresentations, people who are paying for a service and not receiving it. In addition to that, clearly operating as a credit service organization and taking money up front and doing all kinds of things that are in violation of the law."
Mascot Financial, however, is challenging the State's right to investigate the company. In a letter obtained by Eyewitness News, company President Scot Stobbe sites the Bill of Rights, seven constitutional amendments and two court cases, and calls the state's investigation unfounded.
