ISCR Case 19-02336

Case Headnote

ISCR Case No. 19-02336

grantedFeb 28, 2020· Hon. Noreen A. Lynch· hearing

Summary

A 35-year-old married woman with two children was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding delinquent debts totaling $39,000, primarily stemming from a period of unemployment. Disqualifying conditions were raised due to overdue debts and a history of not meeting financial obligations.

Specific debts included a $10,819 charged-off account, which her husband paid using life insurance proceeds. Another charged-off account for $9,809, related to a 2010 jeep refinancing, became delinquent in 2014 after her unemployment but is now paid. Student loans from 2016 were not reimbursed by her employer due to incomplete courses, but she established a payment plan in 2019 and has made three monthly payments of $352. Other resolved debts included a $2,474 credit card account for tires, paid in October 2019, and a $502 collection account settled with life insurance funds. Remaining collection accounts included $1,882 for dental services, with a current balance of $375, and another for $4,136, with a current balance of $2,541, both with ongoing payment plans.

The judge applied mitigating conditions, noting the applicant's positive steps to resolve her debts, including establishing payment plans and seeking financial counseling. Her financial situation was deemed under control, with consistent payments and a budget in place. The financial difficulties were largely attributed to circumstances beyond her control, such as unemployment, leading to the decision to grant her eligibility for access to classified information.

Why the Applicant Prevailed

The applicant took positive steps to resolve her debts, including establishing payment plans and seeking financial counseling.
Her financial situation was deemed under control, with evidence of consistent payments and a budget in place.
The judge found that the financial difficulties were largely due to circumstances beyond her control, such as unemployment.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Financial Counseling
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

SOR issuedAug 23, 2019
Answer filed—
Hearing heldFeb 6, 2020via MS Teams
Decision dateFeb 28, 2020

Cite For

Mitigation of Financial Concerns Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control in Financial Matters
Demonstrating Good-faith Efforts to Resolve Debts as a Mitigating Factor

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	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.b	A charged-off account in the amount of $10,819, Applicant’s husband used the life insurance from his father’s death and paid the entire amount. $10,819	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.c	A charged-off account in the amount of $9,809, was a loan from 2010 for a jeep refinancing. This account became delinquent in 2014 after Applicant’s unemployment. This account is now paid. $9,809	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.d	Student loans from 2016 that were not reimbursed by Applicant’s employer because she did not successfully complete the courses.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.e	Applicant arranged a payment plan in 2019 and has made three monthly payments thus far of $352.	For Applicant	Unspecified Financial	Unknown	—	—	Claimed Payment Plan with Creditor
1.f	A collection account in the amount of $2,474, Applicant used a credit card to buy new tires for her car. This account has been resolved. Applicant paid the account in October 2019. $2,474	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.g	A collection account in the amount of $502, Applicant had been making payments of $15 twice a month since 2015. She used some of the life insurance money referred to above to settle the account. $502	For Applicant	Unspecified Financial	Unknown	—	—	Documented Debt Paid in Full
1.h	A collection account for dental services for her son in the amount of $1,882, Applicant has been making payments since 2015, and the current balance is $375. $1,882	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	A collection account in the amount of $4,136, Applicant has been making automatic payments of $17.29 twice a month since late 2015 and the balance is $2,541. $4,136	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

1.b

A charged-off account in the amount of $10,819, Applicant’s husband used the life insurance from his father’s death and paid the entire amount.

$10,819

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Debt Paid in Full

1.c

A charged-off account in the amount of $9,809, was a loan from 2010 for a jeep refinancing. This account became delinquent in 2014 after Applicant’s unemployment. This account is now paid.

$9,809

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Debt Paid in Full

1.d

Student loans from 2016 that were not reimbursed by Applicant’s employer because she did not successfully complete the courses.

For Applicant

Unspecified Financial

Unknown

—

1.e

Applicant arranged a payment plan in 2019 and has made three monthly payments thus far of $352.

For Applicant

Unspecified Financial

Unknown

—

Claimed

Payment Plan with Creditor

1.f

A collection account in the amount of $2,474, Applicant used a credit card to buy new tires for her car. This account has been resolved. Applicant paid the account in October 2019.

$2,474

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Debt Paid in Full

1.g

A collection account in the amount of $502, Applicant had been making payments of $15 twice a month since 2015. She used some of the life insurance money referred to above to settle the account.

$502

For Applicant

Unspecified Financial

Unknown

—

Documented

Debt Paid in Full

1.h

A collection account for dental services for her son in the amount of $1,882, Applicant has been making payments since 2015, and the current balance is $375.

$1,882

For Applicant

Unspecified Financial

Unknown

—

1.i

A collection account in the amount of $4,136, Applicant has been making automatic payments of $17.29 twice a month since late 2015 and the balance is $2,541.

$4,136

For Applicant

Unspecified Financial

Unknown

—

Loading case…

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision