ISCR Case 06-22217.h1

Case Headnote

ISCR Case No. 06-22217.h1

deniedJul 1, 2006· Hon. Charles D. Ablard· hearing

Summary

A 29-year-old security official was denied a security clearance due to financial considerations under Guideline F, stemming from approximately $23,000 in delinquent debts. The Statement of Reasons detailed eleven specific debts, including a $565 debt for consumer items, an $812 credit card debt, and a $934 unpaid credit card debt. Other significant debts included an $8,929 loan from a federal credit union, which resulted in a judgment against the applicant in 2000, and a $9,061 auto repossession debt from a 2003 Mitsubishi. Additional debts included an unresolved $246 cable service debt, a $417 credit card debt incurred while on active duty, and a $1,441 unpaid Capital One credit card debt.

Disqualifying conditions were raised under Adjudicative Guidelines Paragraphs 19(a) and 19(c), indicating a history of not meeting financial obligations and an inability to satisfy debts. While mitigating conditions under Paragraphs 20(a), 20(b), and 20(c) were considered, they were not sufficient to overcome the security concerns.

The denial was based on the applicant's failure to resolve any of the listed delinquent debts. Furthermore, the applicant withdrew from a credit counseling program after only seven months without achieving debt resolution, and her decision to file for Chapter 7 bankruptcy was deemed an insufficiently responsible action given her employment status.

Why the Applicant Was Denied

The applicant failed to resolve any of the delinquent debts listed in the SOR.
The applicant withdrew from a credit counseling program after only seven months without achieving debt resolution.
The applicant's decision to file for Chapter 7 bankruptcy was viewed as insufficiently responsible given her employment status.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurMost of the applicant's financial problems arose six to ten years ago, but she has not made sufficient progress in addressing them.
AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile some financial issues stemmed from unemployment, the applicant's actions since employment have not been responsible.
AG ¶ 20(c)rejectedEvidence of Receiving Counseling and Indications That the Problem Is Being ResolvedThe applicant withdrew from a counseling program and did not demonstrate effective action to resolve debts.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
— AG & 18

Procedural Posture

SOR issuedOct 3, 2007
Answer filedNov 26, 2007
Hearing heldJan 30, 2008
Decision dateFeb 11, 2008

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Impact of Financial Irresponsibility on Security Clearance Eligibility
Withdrawal From Credit Counseling as a Negative Factor 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	This debt for $565 is for clothing and consumer items purchased before 1997. Applicant has tried to find out about paying the delinquent debt but the store has no record of the transactions. $565	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This debt for $812 is from a credit card with a federal agency credit union. It was consolidated with SOR & 1.d. which is with the same credit union. $812	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	Credit card debt for $934 which has not been paid. $934	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	A debt to a federal credit union for $8,929 based on a loan of $10,000 sometime during her first active duty in the Army. She took out the loan to help her parents buy a home with $2,000 and purchase an auto for $3,200. The remainder was used to consolidate other debts. Some payments were made and the balance was the subject of a judgment against Applicant in 2000. $8,929	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	She denied a cell phone debt of $139 to the same company with which she currently has a cell phone. $139	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.f	Cable service debt of $246 taken out by her second husband which has not been resolved. Another cable bill to a second company not on the SOR was paid by Applicant. $246	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Credit card debt of $417 incurred while on active duty and she could not pay it while unemployed. $417	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Debt of $678 which she does not recognize but assumes it is valid but has not investigated. $678	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Sears card debt for $618 which was not paid when she became unemployed and it has not been paid. $618	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Capital One credit card debt for $1,441 solely in Applicant’s name that is unpaid. $1,441	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Auto repossession debt of $9,061 on a 2003 Mitsubishi purchased for over $20,000 while on active duty on the second tour of duty. She voluntarily returned the auto to the dealer in March 2004 when her tour of duty ended. $9,061	Against Applicant	Auto Loan Debt	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

This debt for $565 is for clothing and consumer items purchased before 1997. Applicant has tried to find out about paying the delinquent debt but the store has no record of the transactions.

$565

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This debt for $812 is from a credit card with a federal agency credit union. It was consolidated with SOR & 1.d. which is with the same credit union.

$812

For Applicant

Credit Card Debt

Admitted

—

1.c

Credit card debt for $934 which has not been paid.

$934

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

A debt to a federal credit union for $8,929 based on a loan of $10,000 sometime during her first active duty in the Army. She took out the loan to help her parents buy a home with $2,000 and purchase an auto for $3,200. The remainder was used to consolidate other debts. Some payments were made and the balance was the subject of a judgment against Applicant in 2000.

$8,929

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

She denied a cell phone debt of $139 to the same company with which she currently has a cell phone.

$139

For Applicant

Utility or Phone Debt

Denied

—

1.f

Cable service debt of $246 taken out by her second husband which has not been resolved. Another cable bill to a second company not on the SOR was paid by Applicant.

$246

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Credit card debt of $417 incurred while on active duty and she could not pay it while unemployed.

$417

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Debt of $678 which she does not recognize but assumes it is valid but has not investigated.

$678

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Sears card debt for $618 which was not paid when she became unemployed and it has not been paid.

$618

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

Capital One credit card debt for $1,441 solely in Applicant’s name that is unpaid.

$1,441

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Auto repossession debt of $9,061 on a 2003 Mitsubishi purchased for over $20,000 while on active duty on the second tour of duty. She voluntarily returned the auto to the dealer in March 2004 when her tour of duty ended.

$9,061

Against Applicant

Auto Loan Debt

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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION