ISCR Case 17-02107.h1

Case Headnote

ISCR Case No. 17-02107.h1

deniedAug 20, 2018· Hon. Gina L. Marine· hearing

Summary

A 34-year-old male applicant with an 11-year-old child was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns regarding ten delinquent debts totaling $22,445. These debts included issues stemming from two used car loans, one for a 2007 sedan surrendered after its transmission failed outside warranty while the applicant was unemployed, and another for a 2009 sedan totaled by a drunk driver, where the insurance payout did not cover the full balance.

Additional debts arose from a transferred account with an unexpected cancellation fee, an account where the applicant fell behind on payments, and a cosigned lease for his child's mother that resulted in a judgment. Overdraft fees incurred during unemployment, a joint account with unauthorized international calls, and a cancellation fee from a previous carrier that a new carrier failed to pay as promised also contributed to the delinquencies. Finally, unpaid traffic tickets incurred by someone using the applicant's car were also noted.

While the applicant claimed to have made some payments and disputed certain debts, he failed to provide corroborating documentation for these assertions or for claims that creditors informed him of zero balances. Despite his efforts to manage his finances, the judge found insufficient evidence of progress or a reliable repayment plan, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant admitted to ten delinquent debts totaling $22,445, establishing disqualifying conditions under Guideline F.
The applicant failed to provide corroborating documentation to support claims of debt resolution or disputes.
The applicant's financial management efforts were deemed insufficient to mitigate the security concerns.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are ongoing and have not been resolved.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, he did not demonstrate sufficient progress in addressing his debts.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's promises to pay were not supported by a track record of consistent payments.
AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant articulated disputes but did not provide sufficient evidence to substantiate them.

Key Rule Quoted

“An applicant does not have to be debt-free in order to qualify for a security clearance.”
— ISCR Case No. 15-02903 at 3 (App. Bd. Mar. 9, 2017)

Procedural Posture

SOR issuedJun 27, 2017
Answer filedAug 18, 2017
Hearing heldMay 16, 2018
Decision dateAug 20, 2018

Cite For

Disqualifying Conditions Under Guideline F Due to Financial Irresponsibility
Insufficient Evidence of Debt Resolution or Repayment Plans
The Importance of Corroborating Documentation in Financial Cases

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 financed a 2007 used sedan in May 2011. Its transmission broke 10 miles outside of warranty, at which time he was unemployed but current with his payments. He surrendered the vehicle because he could not afford the repair. He paid $53 in June 2015. He claimed, without corroborating documents, that the creditor told him he owed a $0 balance. $11,452	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant financed a 2009 used sedan in Sept. 2012. In Nov. or Dec. 2013, a drunk driver totaled it. The driver’s insurance did not pay full balance owed. He claimed, without corroborating documents, that the creditor told him he owed a $0 balance. $3,452	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant transferred this account to his child’s mother in her sole name. He was charged a cancellation fee after being told that he would not be charged one. Applicant claimed, without corroborating documents, that he paid $50 to $75 in June 2015. $584	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant fell behind on this account because he could not afford payments or the cancellation fee. He paid $10 in June 2015. $494	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant fell behind on this account because he could not afford payments. Applicant claimed, without corroborating documents, that he paid approximately $50 to $75 in June 2015. $474	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant cosigned a lease for his child’s mother in 2012. She lost her job and could not afford rent, for which the creditor obtained a judgment in Feb. 2014. He claimed, without corroborating documents, that he paid approximately $200 in June 2015. $2,409	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant incurred overdraft fees when automatic payments were debited during a period of unemployment. He claimed, without corroborating documents, that he paid $50 in June 2015. $680	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant, who shared this joint account with a friend, immediately cancelled the contract when he discovered that the friend made several international calls without his permission. His attempts to collect money from the friend have been unsuccessful. Applicant paid $50 in June 2015. Without providing corroborating documents, he claimed that he successfully disputed the debt. $2,369	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant switched his service on the promise that the new carrier would pay the cancellation fee of his former carrier. The new carrier did not pay the fee as promised. Applicant paid $50 in June 2015. Without providing corroborating documents, he claimed that he successfully disputed the debt. $371	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	A person that Applicant allowed to use his car received traffic tickets. No payments made. $160	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant financed a 2007 used sedan in May 2011. Its transmission broke 10 miles outside of warranty, at which time he was unemployed but current with his payments. He surrendered the vehicle because he could not afford the repair. He paid $53 in June 2015. He claimed, without corroborating documents, that the creditor told him he owed a $0 balance.

$11,452

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant financed a 2009 used sedan in Sept. 2012. In Nov. or Dec. 2013, a drunk driver totaled it. The driver’s insurance did not pay full balance owed. He claimed, without corroborating documents, that the creditor told him he owed a $0 balance.

$3,452

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant transferred this account to his child’s mother in her sole name. He was charged a cancellation fee after being told that he would not be charged one. Applicant claimed, without corroborating documents, that he paid $50 to $75 in June 2015.

$584

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant fell behind on this account because he could not afford payments or the cancellation fee. He paid $10 in June 2015.

$494

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant fell behind on this account because he could not afford payments. Applicant claimed, without corroborating documents, that he paid approximately $50 to $75 in June 2015.

$474

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant cosigned a lease for his child’s mother in 2012. She lost her job and could not afford rent, for which the creditor obtained a judgment in Feb. 2014. He claimed, without corroborating documents, that he paid approximately $200 in June 2015.

$2,409

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant incurred overdraft fees when automatic payments were debited during a period of unemployment. He claimed, without corroborating documents, that he paid $50 in June 2015.

$680

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant, who shared this joint account with a friend, immediately cancelled the contract when he discovered that the friend made several international calls without his permission. His attempts to collect money from the friend have been unsuccessful. Applicant paid $50 in June 2015. Without providing corroborating documents, he claimed that he successfully disputed the debt.

$2,369

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Applicant switched his service on the promise that the new carrier would pay the cancellation fee of his former carrier. The new carrier did not pay the fee as promised. Applicant paid $50 in June 2015. Without providing corroborating documents, he claimed that he successfully disputed the debt.

$371

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

A person that Applicant allowed to use his car received traffic tickets. No payments made.

$160

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES