ISCR Case 12-08319.h1

Case Headnote

ISCR Case No. 12-08319.h1

grantedOct 13, 2016· Hon. Claude R. Heiny II· hearing

Summary

A 56-year-old female applicant was granted a security clearance under Guideline F (Financial Considerations) despite a history of financial difficulties involving 13 collection accounts totaling over $34,000. The Statement of Reasons detailed various debts, including two home improvement credit cards, one of which was settled in full by December 14, 2015. Another debt, a cell phone bill, was fraudulently opened using her Social Security number but was settled in December 2015.

Other allegations included two written-off credit cards for her children, an account she asserted she never had which showed a zero balance and was "Resolved Reported by Grantor" by November 2011, and a credit card opened for her daughter's pet, which was settled with two payments of $990 each in May and June 2012. She also paid an electric bill for which she initially took no financial responsibility. A health-care credit card with an original debt of $4,281, now $7,105, remained unaddressed, as did a debt purchased by another creditor.

The clearance was granted because the applicant addressed the majority of her delinquent accounts, leaving only three remaining debts totaling less than $12,000. She provided evidence of mitigating circumstances, such as periods of unemployment and medical issues, and her recent credit report showed significant improvement with many debts resolved or settled.

Why the Applicant Prevailed

The applicant addressed the majority of her delinquent accounts and has only three remaining debts totaling less than $12,000.
She provided evidence of mitigating circumstances, including periods of unemployment and medical issues that contributed to her financial difficulties.
The applicant's recent credit report showed improvement, with many debts resolved or settled.

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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedThe 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
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence.”

Procedural Posture

SOR issuedNov 22, 2013
Answer filedDec 14, 2013
Hearing heldOct 8, 2015originally scheduled for 07/08/2015 but cancelled
Decision dateOct 16, 2015

Cite For

Mitigating Circumstances Under Guideline F
Evidence of Good-faith Efforts to Resolve Debts
Impact of Personal Circumstances on Financial Obligations

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 had a home improvement credit card with an $800 limit. Late fees, over-limit fees, and interest doubled the amount owed. As of December 14, 2015, settlement in full had been made on this account. $1,663	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant was notified she owed a cell phone bill, which she never opened, but another woman had used her Social Security number to fraudulently obtain service. In December 2015, she settled the debt, and the creditor agreed not to pursue further collection on the account. $1,315	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant had two credit cards with the same company. One card was for her daughter with a $300 limit and the other for her son with a $500 limit. However, on her latest credit report both accounts are listed as written off. $1,872	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.d	Applicant had two credit cards with the same company. One card was for her daughter with a $300 limit and the other for her son with a $500 limit. However, on her latest credit report both accounts are listed as written off. $1,000	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.e	Applicant asserts she never had an account with the creditor listed. Her November 2011 credit report indicates a zero balance on the account and states, 'Resolved Reported by Grantor.' This debt is also listed under SOR 1.k as a duplicate debt. $3,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.f	Applicant had a home improvement credit card with an $800 limit. Late fees, over-limit fees, and interest doubled the amount owed. As of December 14, 2015, settlement in full had been made on this account. $1,663	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	In August 2007, Applicant opened a credit card for her daughter to obtain a pet. The creditor offered to settle this debt for two payments of $990 each. She accepted the offer and made the required payments on May 31, 2012, and June 30, 2012. $1,830	For Applicant	Credit Card Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	The creditor wants her to pay the bill for an electric account that she took no financial responsibility for. The creditor refused to dismiss the debt when Applicant was unwilling to aid in the prosecution of the other person. Applicant has now paid the debt. $769	For Applicant	Utility or Phone Debt	Denied	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.i	Applicant had a health-care credit card. The account was used to pay for medical treatment for herself, her daughter, and her son. The original debt was $4,281 and the balance is now $7,105. The account has not yet been addressed. $7,105	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts	—	—
1.j	Her credit report indicates the debt in SOR 1.l was purchased by another creditor and currently has a zero balance. The debt is now held by the creditor listed in SOR 1.j and has not been paid. $5,183	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.k	Her credit report indicates the debt in SOR 1.l was purchased by another creditor and currently has a zero balance. The debt is now held by the creditor listed in SOR 1.j and has not been paid. $4,207	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.l	Her credit report indicates the debt in SOR 1.l was purchased by another creditor and currently has a zero balance. The debt is now held by the creditor listed in SOR 1.j and has not been paid. $4,207	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.m	Applicant claims she had the service turned off when she moved and never received a final bill. The debt appears on her November 2011 credit reports, but not on her September 2013, February 2014, or April 2015 credit reports. $1,020	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant had a home improvement credit card with an $800 limit. Late fees, over-limit fees, and interest doubled the amount owed. As of December 14, 2015, settlement in full had been made on this account.

$1,663

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.b

Applicant was notified she owed a cell phone bill, which she never opened, but another woman had used her Social Security number to fraudulently obtain service. In December 2015, she settled the debt, and the creditor agreed not to pursue further collection on the account.

$1,315

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.c

Applicant had two credit cards with the same company. One card was for her daughter with a $300 limit and the other for her son with a $500 limit. However, on her latest credit report both accounts are listed as written off.

$1,872

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) conditions largely beyond the person’s control; acted responsibly

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

Claimed

Debt Paid in Full

1.d

$1,000

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) conditions largely beyond the person’s control; acted responsibly

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

Claimed

Debt Paid in Full

1.e

Applicant asserts she never had an account with the creditor listed. Her November 2011 credit report indicates a zero balance on the account and states, 'Resolved Reported by Grantor.' This debt is also listed under SOR 1.k as a duplicate debt.

$3,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.f

$1,663

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.g

In August 2007, Applicant opened a credit card for her daughter to obtain a pet. The creditor offered to settle this debt for two payments of $990 each. She accepted the offer and made the required payments on May 31, 2012, and June 30, 2012.

$1,830

For Applicant

Credit Card Debt

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.h

The creditor wants her to pay the bill for an electric account that she took no financial responsibility for. The creditor refused to dismiss the debt when Applicant was unwilling to aid in the prosecution of the other person. Applicant has now paid the debt.

$769

For Applicant

Utility or Phone Debt

Denied

—

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.i

Applicant had a health-care credit card. The account was used to pay for medical treatment for herself, her daughter, and her son. The original debt was $4,281 and the balance is now $7,105. The account has not yet been addressed.

$7,105

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

—

1.j

Her credit report indicates the debt in SOR 1.l was purchased by another creditor and currently has a zero balance. The debt is now held by the creditor listed in SOR 1.j and has not been paid.

$5,183

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.k

Her credit report indicates the debt in SOR 1.l was purchased by another creditor and currently has a zero balance. The debt is now held by the creditor listed in SOR 1.j and has not been paid.

$4,207

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.l

Her credit report indicates the debt in SOR 1.l was purchased by another creditor and currently has a zero balance. The debt is now held by the creditor listed in SOR 1.j and has not been paid.

$4,207

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.m

Applicant claims she had the service turned off when she moved and never received a final bill. The debt appears on her November 2011 credit reports, but not on her September 2013, February 2014, or April 2015 credit reports.

$1,020

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