ISCR Case 19-00379

Case Headnote

ISCR Case No. 19-00379

deniedOct 15, 2019· Hon. Shari Dam· hearing

Summary

A 42-year-old woman was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent debts totaling $39,480. The applicant had a history of financial difficulties dating back to 2007, which continued through the present.

Specific allegations included a $19,950 mortgage deficiency from a 2013 foreclosure, though she was no longer responsible for it per a state housing department. She also had over $94,000 in student loans, with a past due amount of $3,035 as of February 2019, though they were in forbearance until August 2019. Other debts included a $3,461 credit card debt, for which she entered a consent judgment in February 2019, agreeing to bi-monthly $50 payments after previously stopping payments. A $1,739 jewelry store debt saw initial payments in February 2019, which she could not sustain, but she planned new monthly payments of $59 starting September 2019.

Additional debts included a $343 medical debt, on which she made a $75 payment in August 2019 with plans to pay the balance by September 2019. Two other medical debts, for $150 and $200, could not be located or verified with creditors. An $840 debt for unpaid parking tickets remained unresolved, with the applicant intending to pay it after other plans were completed. Finally, an $8,489 judgment from a condominium association, entered in 2016, saw initial payments from June 2017 to July 2018, which then ceased. The denial was based on the applicant's inability and unwillingness to satisfy debts and insufficient evidence of responsible financial management or good-faith efforts to resolve larger debts.

Why the Applicant Was Denied

The applicant has a history of inability and unwillingness to satisfy debts that began in 2007 and continues into the present.
The applicant did not present sufficient evidence to prove that her financial difficulties were managed responsibly under the circumstances.
The applicant has not provided sufficient evidence of having initiated good-faith efforts to resolve larger debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedFeb 22, 2019
Answer filedApr 12, 2019
Hearing heldAug 14, 2019
Decision dateOct 15, 2019

Cite For

Insufficient Mitigation of Financial Concerns Under Guideline F
Importance of Demonstrating a Credible Plan for Financial Management
Consideration of the Whole-person Concept in Security Clearance Decisions

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admitted that there was a $19,950 deficiency balance owed on her mortgage when it was foreclosed in 2013. However, she is no longer responsible for it according to a state’s Department of Housing, which does not pursue mortgage deficiencies on defaulted loans. Additionally, the original creditor is no longer in business. $19,950	For Applicant	Mortgage or Home Loan Debt	Denied	—	—	—
1.b	Applicant’s two student loans total over $94,000. She took out the initial loans in 2005. During her February 2018 interview, she said she had not made significant payments on the loans, but intended to begin a payment plan in March 2018. At the time the SOR was filed in February 2019, the accounts had a past due amount of $3,035. As of April 5, 2019, the loans were in forbearance until August 27. $94,000	Against Applicant	Student Loan Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability	—	—
1.c	In February 2019, Applicant entered into a Consent Judgment with a credit card creditor. She agreed to begin making bi-monthly payments of $50 on the delinquent $3,461 credit card debt. She has made seven payments. Prior to this agreement, she had begun making payments of $25 to the creditor in October 2018, but then stopped. The creditor filed a lawsuit in November 2018. $3,461	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	This delinquent $1,739 debt is owed to a jewelry store for a purchase Applicant made in 2015. In October 2018, Applicant negotiated a payment plan with the creditor. She began making monthly payments of $50 in February 2019, but was unable to continue making them. She subsequently re-negotiated the debt and plans to begin monthly payments of $59 in September 2019. $1,739	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability	—	—
1.e	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.f	In August 2019, Applicant made a $75 payment on the $343 medical debt, leaving a balance of $225. She will make the final payments at the end of September 2019. $343	For Applicant	Medical Debt	Admitted	—	—	—
1.g	Applicant disclosed this $150 medical debt in her security clearance application based on her credit report. After investigating it, she has been unable to locate a creditor to pay. She said she contacted the medical provider, who indicated that it did not have any outstanding bill for her. $150	For Applicant	Medical Debt	Denied	—	—	—
1.h	Applicant disclosed this $200 medical debt in her security clearance application based on her credit report. After investigating it, she has been unable to locate a creditor to pay, including the medical provider. $200	For Applicant	Medical Debt	Denied	—	—	—
1.i	The $840 debt owed to a local government is for unpaid parking tickets. Applicant tried to establish a repayment plan with the agency, but it does not do that. She intends to pay it after she completes payments on some of her established payment plans. $840	Against Applicant	Unspecified Financial	Denied	(b) unwillingness to satisfy debts regardless of ability	—	—
1.j	The $8,489 judgment owed to a condominium association was entered against Applicant in 2016, after the property foreclosure was completed. In November 2018, she began contacting the creditor for a payment plan and subsequently initiated one for resolving the judgment. She documented seven payments from June 2017 to July 2018, in the amounts of $106 and $282, and then apparently stopped making them. $8,489	Against Applicant	Judgment Against Applicant	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted that there was a $19,950 deficiency balance owed on her mortgage when it was foreclosed in 2013. However, she is no longer responsible for it according to a state’s Department of Housing, which does not pursue mortgage deficiencies on defaulted loans. Additionally, the original creditor is no longer in business.

$19,950

For Applicant

Mortgage or Home Loan Debt

Denied

—

1.b

Applicant’s two student loans total over $94,000. She took out the initial loans in 2005. During her February 2018 interview, she said she had not made significant payments on the loans, but intended to begin a payment plan in March 2018. At the time the SOR was filed in February 2019, the accounts had a past due amount of $3,035. As of April 5, 2019, the loans were in forbearance until August 27.

$94,000

Against Applicant

Student Loan Debt

Admitted

(b) unwillingness to satisfy debts regardless of ability

—

1.c

In February 2019, Applicant entered into a Consent Judgment with a credit card creditor. She agreed to begin making bi-monthly payments of $50 on the delinquent $3,461 credit card debt. She has made seven payments. Prior to this agreement, she had begun making payments of $25 to the creditor in October 2018, but then stopped. The creditor filed a lawsuit in November 2018.

$3,461

For Applicant

Credit Card Debt

Admitted

—

1.d

This delinquent $1,739 debt is owed to a jewelry store for a purchase Applicant made in 2015. In October 2018, Applicant negotiated a payment plan with the creditor. She began making monthly payments of $50 in February 2019, but was unable to continue making them. She subsequently re-negotiated the debt and plans to begin monthly payments of $59 in September 2019.

$1,739

Against Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

—

1.e

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

1.f

In August 2019, Applicant made a $75 payment on the $343 medical debt, leaving a balance of $225. She will make the final payments at the end of September 2019.

$343

For Applicant

Medical Debt

Admitted

—

1.g

Applicant disclosed this $150 medical debt in her security clearance application based on her credit report. After investigating it, she has been unable to locate a creditor to pay. She said she contacted the medical provider, who indicated that it did not have any outstanding bill for her.

$150

For Applicant

Medical Debt

Denied

—

1.h

Applicant disclosed this $200 medical debt in her security clearance application based on her credit report. After investigating it, she has been unable to locate a creditor to pay, including the medical provider.

$200

For Applicant

Medical Debt

Denied

—

1.i

The $840 debt owed to a local government is for unpaid parking tickets. Applicant tried to establish a repayment plan with the agency, but it does not do that. She intends to pay it after she completes payments on some of her established payment plans.

$840

Against Applicant

Unspecified Financial

Denied

(b) unwillingness to satisfy debts regardless of ability

—

1.j

The $8,489 judgment owed to a condominium association was entered against Applicant in 2016, after the property foreclosure was completed. In November 2018, she began contacting the creditor for a payment plan and subsequently initiated one for resolving the judgment. She documented seven payments from June 2017 to July 2018, in the amounts of $106 and $282, and then apparently stopped making them.

$8,489

Against Applicant

Judgment Against Applicant

Admitted

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

PROCEDURAL MATTERS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION