ISCR Case 06-16153.h1

Case Headnote

ISCR Case No. 06-16153.h1

grantedOct 19, 2007· Hon. Wilford H. Ross· hearing

Summary

A 56-year-old engineer with a Bachelor’s degree was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The allegations stemmed from debts incurred between 2000 and 2004.

The Applicant successfully addressed multiple past due debts. He paid in full a $252.70 utility debt, a $60.00 Dish Network debt, a $182.00 medical debt, a $1,238.00 Capital One credit card debt, and a $271.00 utility debt, all by August 2007. He also settled a $2,463.00 debt to a property management company for $1,231.50 in April 2007, and a $923.00 S & P Capital credit card debt for $709.00 in August 2007. For other alleged debts, including amounts to Portfolio, Midland Credit Management, West Asset Management, and Omnium, the Applicant consistently denied owing them, stating that creditors had no record or that he could not identify the debt. He also won a court case concerning a $438.00 medical debt.

The clearance was granted because the Applicant demonstrated financial responsibility by resolving most of his debts. He provided credible testimony about his ability to manage current finances and adhere to a budget, and his past financial difficulties were attributed to specific work and family issues that have since been resolved.

Why the Applicant Prevailed

The Applicant paid off seven debts and settled others, demonstrating financial responsibility.
He provided credible testimony regarding his ability to manage current debts and maintain a budget.
The financial difficulties were largely due to work and family issues during a specific period, which have since been resolved.

Conditions Referenced

Disqualifying

19.araisedInability or Unwillingness to Satisfy Debts
19.craisedA History of Not Meeting Financial Obligations

Mitigating

20.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness or Good Judgment
20.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“Each adjudication is to be an overall common sense determination based upon consideration and assessment of all available information, both favorable and unfavorable.”

Procedural Posture

SOR issuedAug 30, 2006
Answer filedOct 13, 2006
Hearing heldAug 7, 2007
Decision dateOct 19, 2007

Cite For

Mitigation of Financial Concerns Under Guideline F
Resolution of Debts as a Factor in Security Clearance Decisions
Credibility of Applicant's Testimony Regarding Financial Management

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	The Applicant admits owing a past due debt to a utility in the amount of $252.70. This debt was paid in full as of August 3, 2007. $252	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.b	The Applicant admits owing a past due debt to a property management company in the amount of $2,463.00. An agreement was reached with the creditor and the debt was settled on April 2, 2007, by means of a payment of $1,231.50. $2,463	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.c	The Applicant admits owing a past due debt to Dish Network in the amount of $60.00. This debt was paid in full as of August 3, 2007. $60	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.d	The Applicant admits owing a past due medical debt in the amount of $182.00. This debt was paid in full as of August 7, 2007. $182	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.e	The Applicant admits owing a past due credit card debt to Capital One Bank in the amount of $1,238.00. This debt was paid in full as of June 11, 2007. $1,238	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.f	The Applicant admits owing a past due debt to a utility in the amount of $271.00. This debt was paid in full as of February 17, 2007. $271	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.g	The Applicant has consistently denied owing a past due debt to Portfolio in the amount of $671.00. He testified that, using the contact information found on page 9 of Government Exhibit 4, he contacted Portfolio. The company informed the Applicant that they had no knowledge of any current debt owing to them. $671	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	The Applicant admits owing a past due credit card debt to S & P Capital in the amount of $923.00. An agreement was reached with the creditor and the debt was settled on August 1, 2007, by means of a payment of $709.00. $923	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.i	The available evidence indicates that this debt to Citifinancial is the same as that set forth in 1.h., above. The Government’s exhibits show these two creditors being owed the same amount of money. This indicates that the debt was transferred, but the credit reporting agency did not have the information.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	The available evidence indicates that this debt to Consumer Collection Services is the same as that set forth in 1.a., above. The Government’s exhibits indicate that this is the same creditor.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	The Applicant has consistently denied owing a past due debt to Midland Credit Management in the amount of $10,106.00. He testified that he has contacted the possible creditors, but no one is able to give him a good answer as to what this debt is for and to whom he currently owes it. $10,106	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	The Applicant has consistently denied owing a past due debt for medical services in the amount of $438.00. The Applicant won a court case concerning this debt but the plaintiff’s lawyer will not remove the entry in the credit reports out of spite. This entry does not appear on his most current credit report. $438	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	The Applicant has consistently denied owing a past due debt to West Asset Management in the amount of $727.00 for medical care. He testified that he contacted the original hospital, which informed the Applicant that they had no knowledge of any current debt owing to them. This entry does not appear on his most current credit report. $727	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	The Applicant has consistently denied owing a past due debt to Omnium in the amount of $718.00 for medical care. He testified that he contacted the original hospital, which informed the Applicant that they had no knowledge of any current debt owing to them. This entry does not appear on his most current credit report. $718	For Applicant	Medical Debt	Denied	(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

The Applicant admits owing a past due debt to a utility in the amount of $252.70. This debt was paid in full as of August 3, 2007.

$252

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.b

The Applicant admits owing a past due debt to a property management company in the amount of $2,463.00. An agreement was reached with the creditor and the debt was settled on April 2, 2007, by means of a payment of $1,231.50.

$2,463

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.c

The Applicant admits owing a past due debt to Dish Network in the amount of $60.00. This debt was paid in full as of August 3, 2007.

$60

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.d

The Applicant admits owing a past due medical debt in the amount of $182.00. This debt was paid in full as of August 7, 2007.

$182

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.e

The Applicant admits owing a past due credit card debt to Capital One Bank in the amount of $1,238.00. This debt was paid in full as of June 11, 2007.

$1,238

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.f

The Applicant admits owing a past due debt to a utility in the amount of $271.00. This debt was paid in full as of February 17, 2007.

$271

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.g

The Applicant has consistently denied owing a past due debt to Portfolio in the amount of $671.00. He testified that, using the contact information found on page 9 of Government Exhibit 4, he contacted Portfolio. The company informed the Applicant that they had no knowledge of any current debt owing to them.

$671

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

The Applicant admits owing a past due credit card debt to S & P Capital in the amount of $923.00. An agreement was reached with the creditor and the debt was settled on August 1, 2007, by means of a payment of $709.00.

$923

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.i

The available evidence indicates that this debt to Citifinancial is the same as that set forth in 1.h., above. The Government’s exhibits show these two creditors being owed the same amount of money. This indicates that the debt was transferred, but the credit reporting agency did not have the information.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

The available evidence indicates that this debt to Consumer Collection Services is the same as that set forth in 1.a., above. The Government’s exhibits indicate that this is the same creditor.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

The Applicant has consistently denied owing a past due debt to Midland Credit Management in the amount of $10,106.00. He testified that he has contacted the possible creditors, but no one is able to give him a good answer as to what this debt is for and to whom he currently owes it.

$10,106

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

The Applicant has consistently denied owing a past due debt for medical services in the amount of $438.00. The Applicant won a court case concerning this debt but the plaintiff’s lawyer will not remove the entry in the credit reports out of spite. This entry does not appear on his most current credit report.

$438

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

The Applicant has consistently denied owing a past due debt to West Asset Management in the amount of $727.00 for medical care. He testified that he contacted the original hospital, which informed the Applicant that they had no knowledge of any current debt owing to them. This entry does not appear on his most current credit report.

$727

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

The Applicant has consistently denied owing a past due debt to Omnium in the amount of $718.00 for medical care. He testified that he contacted the original hospital, which informed the Applicant that they had no knowledge of any current debt owing to them. This entry does not appear on his most current credit report.

$718

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Loading case…

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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES