Estimated read time: 1-2 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
SALT LAKE CITY (AP) -- The Community Credit Counseling Service of Utah is closing its doors and will send letters to its remaining clients this week, referring them to another credit-counseling company, said the attorney for CCCS' president.
CCCS, which remains under investigation by the Utah Division of Consumer Protection, will close as soon as employees can wrap up its affairs, said Jim Bradshaw, the attorney for Scott McCagno, who tried to resign as president
"It's complicated what has happened," Bradshaw said Monday. "Scott offered to resign on April 23 in anticipation that a new group would be taking over at CCCS. Now it doesn't look like that (takeover) is going to happen."
CCCS "anticipates that all the payments will be made that are required this week," Bradshaw said.
The division alleged in late March that the CCCS and McCagno mishandled client funds. As part of its debt management service, the agency accepted payments from clients and deposited the money into a trust account, from which clients' bills were paid. The division said the trust account had gone into deficit, causing client payments to bounce.
The state seized control of the agency on March 30, but 3rd District Judge Frank Noel dissolved the restraining order the following week, ruling that the state had provided insufficient evidence. Control of the company was returned to McCagno.
Division director Francine Giani declined Monday to discuss CCCS' status, saying only the state's investigation was continuing.
McCagno was unavailable for comment.
A business associate told The Salt Lake Tribune that McCagno is in Italy to get married and honeymoon, and is expected to return May 17.
(Copyright 2004 by The Associated Press. All Rights Reserved.)