ISCR Case 24-01933

Case Headnote

ISCR Case No. 24-01933

grantedSep 26, 2025· Hon. John Bayard Glendon· hearing

Summary

A 55-year-old veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) related to five alleged delinquent debts. The applicant admitted to four of these debts, denying only a $242 collection account he was unaware of.

The financial issues included a $22,246 charged-off auto loan, which became delinquent during a period of unemployment after his Army retirement, and for which he has since established a payment arrangement. He also addressed a $1,567 charged-off account for an alarm system and a $72 charged-off credit-repair subscription, both of which he paid upon learning of them. Additionally, he admitted to an $11,177 balance due on a repossessed auto loan, explaining he voluntarily surrendered the vehicle due to mechanical issues.

The administrative judge found that the applicant demonstrated a good-faith effort to resolve his debts through payment arrangements and settlements. His financial difficulties were largely attributed to circumstances beyond his control, specifically unemployment following military retirement. The applicant's long service history and current employment as a DOD contractor further supported a favorable assessment of his reliability and trustworthiness, leading to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve delinquent debts through payment arrangements and settlements.
The applicant's long service history and current employment as a DOD contractor contributed to a favorable assessment of his reliability and trustworthiness.
The applicant's financial issues were largely due to circumstances beyond his control, such as unemployment after military retirement.

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)appliedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedIndividual Has Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
AG ¶ 20(e)appliedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“An applicant is not held to a standard of perfection in his debt-resolution efforts or required to be debt-free.”
— ISCR Case No. 15-02903 at 3 (App. Bd. Mar. 9, 2017)

Procedural Posture

SOR issuedDec 3, 2024
Answer filedDec 12, 2024
Hearing heldAug 18, 2025by video teleconference
Decision dateSep 26, 2025

Cite For

Mitigation of Financial Concerns Under Guideline F
Consideration of Whole-person Factors in Security Clearance Decisions
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	Charged-Off Auto Loan Account ($22,246). Applicant explained that this account became delinquent when he retired from the Army and had little or no income due to over a year of unemployment. He testified that he has entered into a payment arrangement with the creditor to resolve this debt. $22,246	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.b	Charged-Off Account ($1,567). This account was for an alarm system he had installed after purchasing his current home. He wrote in the Answer that he contacted the collection agency and paid this debt when he learned about it. $1,567	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Collection Account ($242). Applicant denied this debt in the Answer. He wrote that he is not aware of it. $242	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.d	Charged-Off Account ($72). Applicant admitted this debt in the Answer. He wrote that it was for a credit-repair subscription he had at one time. He advised that he contacted the company and paid the debt. $72	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	Balance Due on Repossessed Auto Loan Account ($11,177). Applicant admitted this debt in the Answer. He wrote that he voluntarily surrendered this vehicle after it proved to be a 'lemon.' $11,177	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Charged-Off Auto Loan Account ($22,246). Applicant explained that this account became delinquent when he retired from the Army and had little or no income due to over a year of unemployment. He testified that he has entered into a payment arrangement with the creditor to resolve this debt.

$22,246

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

Documented

Payment Plan with Creditor

1.b

Charged-Off Account ($1,567). This account was for an alarm system he had installed after purchasing his current home. He wrote in the Answer that he contacted the collection agency and paid this debt when he learned about it.

$1,567

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.c

Collection Account ($242). Applicant denied this debt in the Answer. He wrote that he is not aware of it.

$242

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.d

Charged-Off Account ($72). Applicant admitted this debt in the Answer. He wrote that it was for a credit-repair subscription he had at one time. He advised that he contacted the company and paid the debt.

$72

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.e

Balance Due on Repossessed Auto Loan Account ($11,177). Applicant admitted this debt in the Answer. He wrote that he voluntarily surrendered this vehicle after it proved to be a 'lemon.'

$11,177

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

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Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision