RALEIGH — A phone company with North Carolina sales representatives has agreed to quit doing business in the state for now. But the company says it wants to come up with a plan to comply with state law.

Destiny Telecomm bills itself as a telecommunications company, but the North Carolina Attorney General's office calls it a pyramid scheme. The company was asked to stop doing business in the state, but now says it wants to find a way to come back.

Destiny had until last Monday to voluntarily stop doing business in N.C. or face a lawsuit. The Consumer Protection Section had concluded that Destiny sold almost exclusively to its own sales representatives, unlike other direct marketing companies which sell mostly to the general public. When WRAL TV5 reported the story, company investors started flooding the attorney general's office with phone calls.

A Destiny spokesman now says the company is pleased with what he called "progress in the State of North Carolina". He said the company will continue to try to work out a plan that allows it to do business here.

In the meantime, Destiny representatives can continue to use their phone cards, they just can't sell them.