ISCR Case 17-04323.h1

Case Headnote

ISCR Case No. 17-04323.h1

grantedOct 19, 2018· Hon. Robert Robinson Gales· hearing

Summary

A 58-year-old electronic technician with military service was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations related to twelve delinquent accounts, including bank-issued store charge accounts, credit cards, and utility bills. Specific issues included an unresolved $5,105 store charge, a $2,280 automobile service account resolved via a $2,280.31 payment after a lawsuit, and a $1,382 department store account settled for $1,037. Other debts, such as a $2,153 home improvement store account and several telephone and utility bills, remained unresolved or were in the process of being addressed.

The applicant demonstrated significant progress in managing his finances. For example, he was making monthly payments on a charged-off credit card and had a payment plan for a power utility account, reducing its balance to $621.50. He also successfully settled an unspecified telephone account for $67.56.

The clearance was granted because the applicant showed significant progress in stabilizing his finances and avoiding recent delinquencies. His financial difficulties were attributed to circumstances beyond his control, such as his wife's job loss and unexpected expenses. Furthermore, the applicant had a plan to resolve his remaining delinquent accounts and had made demonstrable efforts to pay off debts.

Why the Applicant Prevailed

The applicant demonstrated significant progress in stabilizing his finances and avoiding recent delinquencies.
The applicant's financial difficulties were attributed to circumstances beyond his control, including his wife's job loss and unexpected expenses.
The applicant has a plan to resolve his delinquent accounts and has made efforts to pay off debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)rejectedUnwillingness to Satisfy Debts Regardless of the Ability to Do SoThere is no evidence that he was unwilling to satisfy his debts.
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(e)raisedConsistent Spending Beyond One’s MeansSome accounts became delinquent, indicating financial distress.

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago or Under Circumstances Unlikely to RecurThe applicant's financial issues were due to circumstances unlikely to recur.
AG ¶ 20(b)appliedConditions That Resulted in Financial Difficulties Have Been Resolved or Are Being AddressedThe applicant has made significant progress in addressing his debts.

Key Rule Quoted

“The entire process is a conscientious scrutiny of a number of variables known as the 'whole-person concept.'”

Procedural Posture

SOR issuedJan 12, 2018
Answer filedApr 3, 2018Notarized statement requesting a hearing.
Hearing heldJul 27, 2018
Decision dateOct 19, 2018

Cite For

Mitigation of Financial Concerns Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control
Demonstration of Progress in Resolving Financial Issues

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 is a bank-issued store charge account with an unpaid balance of $5,105 that was sold to a debt purchaser. Although Applicant has not yet made any payments on this account, the debt purchaser was originally scheduled to be paid $105 on a monthly basis once the first set of delinquent debts has been satisfied. The account has not been resolved. $5,105	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	These are two separate listings of the same bank-issued credit card for an outdoor recreation retail specialty store with two separate snapshots of the changing unpaid balances of $2,583 and $3,083 that were charged off. The bank that issued the credit card was subsequently purchased by a larger bank. Applicant has been making monthly payments of at least $25 under a payment plan since either August 2015 or April 2016, and he intends to increase that amount once another debt is resolved. While one of the credit report listings simply referred to the pay status as 'charged off,' the other listing reported it as 'current; paid or paying as agreed.' The account is in the process of being resolved.	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	This is a bank-issued charge account for an automobile service center with an unpaid and past-due balance of $2,280 that was sold to a debt purchaser. The debt purchaser was originally scheduled to be paid $47 on a monthly basis once the first set of delinquent debts has been satisfied. However, a claim was filed against Applicant in court in January 2018, and on February 13, 2018, Applicant paid the plaintiff/debt purchaser $2,280.31 that was borrowed from his mother. The lawsuit was voluntarily dismissed on February 23, 2018. The account has been resolved. $2,280	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	This is a bank-issued charge account for a retail home improvement store with an unpaid balance of $2,153 that was sold to a debt purchaser. The debt purchaser was originally scheduled to be paid $45 on a monthly basis once the first set of delinquent debts has been satisfied. Applicant anticipated making his initial payment in September 2018. The account has not been resolved. $2,153	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	This is a bank-issued department store charge account with an unpaid balance of $1,382 that was charged off and sold to a debt purchaser. The debt purchaser was originally scheduled to be paid $42 on a monthly basis once the first set of delinquent debts has been satisfied. However, in April 2018, the debt purchaser offered to settle the account for $1,037, a savings to Applicant of $345.72. Applicant agreed to the offer, and on June 15, 2018, his final payment was received by the debt purchaser, and the account was considered settled with a zero balance. The account has been resolved. $1,382	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	This is a bank-issued furniture store charge account with an unpaid balance of $1,231 that was charged off and sold to a debt purchaser. Although Applicant has not yet made any payments on this account, the debt purchaser was originally scheduled to be paid $31 on a monthly basis once the first set of delinquent debts has been satisfied. The account has not been resolved. $1,231	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	This is a cellular telephone account with an unpaid balance of $1,017. Although Applicant has not yet made any payments on this account, he intends to make his initial payments once the first set of delinquent debts has been satisfied. The account has not been resolved. $1,017	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.h	This is an unspecified type of telephone account with an unpaid balance of $599. Although Applicant has not yet made any payments on this account, he intends to make his initial payments once the first set of delinquent debts has been satisfied. The account has not been resolved. $599	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	This is an Internet or cable television account with an unpaid balance of $181. Although Applicant has not yet made any payments on this account, he intends to make his initial payments once the first set of delinquent debts has been satisfied. The account has not been resolved. $181	For Applicant	Unspecified Financial	Admitted	—	—	—
1.j	This is a power utility account that became over 120 days past due in the amount of $764 when Applicant’s tenants were evicted from his rental property for not paying him their rent and they departed without paying their utility bill. In order to switch service back into his name, Applicant was placed on a prepay basis. In accordance with that decision, 25 percent of each bill paid by Applicant is credited to the deferred arrearage. Applicant’s most recent payment for $100 was made on July 13, 2018, and the remaining unpaid balance was reduced to $621.50. The account is in the process of being resolved. $764	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.k	This is an unspecified type of telephone account with an unpaid balance of $122.84. However, in May 2017, the collection agent offered to settle the account for $67.56. Applicant agreed to the offer, and on May 9, 2017, his payment was received by the creditor, and the account was considered settled with a zero balance. The account has been resolved. $122	For Applicant	Unspecified Financial	Admitted	—	—	—
1.l	This is an unspecified type of utility account with an unpaid balance of $106. At the hearing, Applicant acknowledged that he had not yet addressed the account because he was focusing on other accounts. He stated an intention to call the creditor and pay off the balance. The account has not been resolved. $106	For Applicant	Unspecified Financial	Admitted	—	—	—
1.m	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a bank-issued store charge account with an unpaid balance of $5,105 that was sold to a debt purchaser. Although Applicant has not yet made any payments on this account, the debt purchaser was originally scheduled to be paid $105 on a monthly basis once the first set of delinquent debts has been satisfied. The account has not been resolved.

$5,105

For Applicant

Unspecified Financial

Admitted

—

1.b

These are two separate listings of the same bank-issued credit card for an outdoor recreation retail specialty store with two separate snapshots of the changing unpaid balances of $2,583 and $3,083 that were charged off. The bank that issued the credit card was subsequently purchased by a larger bank. Applicant has been making monthly payments of at least $25 under a payment plan since either August 2015 or April 2016, and he intends to increase that amount once another debt is resolved. While one of the credit report listings simply referred to the pay status as 'charged off,' the other listing reported it as 'current; paid or paying as agreed.' The account is in the process of being resolved.

For Applicant

Credit Card Debt

Admitted

—

1.c

This is a bank-issued charge account for an automobile service center with an unpaid and past-due balance of $2,280 that was sold to a debt purchaser. The debt purchaser was originally scheduled to be paid $47 on a monthly basis once the first set of delinquent debts has been satisfied. However, a claim was filed against Applicant in court in January 2018, and on February 13, 2018, Applicant paid the plaintiff/debt purchaser $2,280.31 that was borrowed from his mother. The lawsuit was voluntarily dismissed on February 23, 2018. The account has been resolved.

$2,280

For Applicant

Unspecified Financial

Admitted

—

1.d

This is a bank-issued charge account for a retail home improvement store with an unpaid balance of $2,153 that was sold to a debt purchaser. The debt purchaser was originally scheduled to be paid $45 on a monthly basis once the first set of delinquent debts has been satisfied. Applicant anticipated making his initial payment in September 2018. The account has not been resolved.

$2,153

For Applicant

Unspecified Financial

Admitted

—

1.e

This is a bank-issued department store charge account with an unpaid balance of $1,382 that was charged off and sold to a debt purchaser. The debt purchaser was originally scheduled to be paid $42 on a monthly basis once the first set of delinquent debts has been satisfied. However, in April 2018, the debt purchaser offered to settle the account for $1,037, a savings to Applicant of $345.72. Applicant agreed to the offer, and on June 15, 2018, his final payment was received by the debt purchaser, and the account was considered settled with a zero balance. The account has been resolved.

$1,382

For Applicant

Unspecified Financial

Admitted

—

1.f

This is a bank-issued furniture store charge account with an unpaid balance of $1,231 that was charged off and sold to a debt purchaser. Although Applicant has not yet made any payments on this account, the debt purchaser was originally scheduled to be paid $31 on a monthly basis once the first set of delinquent debts has been satisfied. The account has not been resolved.

$1,231

For Applicant

Unspecified Financial

Admitted

—

1.g

This is a cellular telephone account with an unpaid balance of $1,017. Although Applicant has not yet made any payments on this account, he intends to make his initial payments once the first set of delinquent debts has been satisfied. The account has not been resolved.

$1,017

For Applicant

Utility or Phone Debt

Admitted

—

1.h

This is an unspecified type of telephone account with an unpaid balance of $599. Although Applicant has not yet made any payments on this account, he intends to make his initial payments once the first set of delinquent debts has been satisfied. The account has not been resolved.

$599

For Applicant

Unspecified Financial

Admitted

—

1.i

This is an Internet or cable television account with an unpaid balance of $181. Although Applicant has not yet made any payments on this account, he intends to make his initial payments once the first set of delinquent debts has been satisfied. The account has not been resolved.

$181

For Applicant

Unspecified Financial

Admitted

—

1.j

This is a power utility account that became over 120 days past due in the amount of $764 when Applicant’s tenants were evicted from his rental property for not paying him their rent and they departed without paying their utility bill. In order to switch service back into his name, Applicant was placed on a prepay basis. In accordance with that decision, 25 percent of each bill paid by Applicant is credited to the deferred arrearage. Applicant’s most recent payment for $100 was made on July 13, 2018, and the remaining unpaid balance was reduced to $621.50. The account is in the process of being resolved.

$764

For Applicant

Utility or Phone Debt

Admitted

—

1.k

This is an unspecified type of telephone account with an unpaid balance of $122.84. However, in May 2017, the collection agent offered to settle the account for $67.56. Applicant agreed to the offer, and on May 9, 2017, his payment was received by the creditor, and the account was considered settled with a zero balance. The account has been resolved.

$122

For Applicant

Unspecified Financial

Admitted

—

1.l

This is an unspecified type of utility account with an unpaid balance of $106. At the hearing, Applicant acknowledged that he had not yet addressed the account because he was focusing on other accounts. He stated an intention to call the creditor and pay off the balance. The account has not been resolved.

$106

For Applicant

Unspecified Financial

Admitted

—

1.m

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Prevailed

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

FOOTNOTES