ISCR Case 12-09434.h1

Case Headnote

ISCR Case No. 12-09434.h1

deniedJul 21, 2017· Hon. Robert Robinson Gales· hearing

Summary

A 31-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed numerous delinquent accounts, including a $554 telephone account, a $1,431 online grocery delivery service account, and a bank credit card with an unpaid balance of $1,838, all placed for collection.

Further allegations included an installment loan with a $1,144 past-due balance and $1,635 charged off, an unspecified account with a $3,753 unpaid balance that was charged off, and a bank-issued credit card with a $1,214 unpaid balance that was charged off. An automobile loan with a $9,912 unpaid balance resulted in repossession, and a Government overpayment of $8,424 for a reenlistment bonus was also placed for collection. Additional smaller debts included an unspecified bank account ($541), another unspecified bank account ($228), and a cable television account ($51), and a local library account ($88), all placed for collection.

Despite participation in a debt-management program, the applicant failed to provide sufficient evidence of financial stability or resolution of her delinquent accounts. The denial was based on the applicant's failure to demonstrate adequate efforts to resolve her financial issues, her unstable financial situation with numerous unresolved debts, and conflicting information provided regarding the status of her debts.

Why the Applicant Was Denied

The applicant failed to demonstrate sufficient efforts to resolve her financial issues.
The applicant's financial situation remained unstable with numerous unresolved debts.
The applicant provided conflicting information regarding the status of her debts.

Conditions Referenced

Disqualifying

F.3raisedInability or Unwillingness to Satisfy Debts
F.2raisedA History of Not Meeting Financial Obligations

Mitigating

F.1rejectedThe Behavior Was Not RecentThe applicant's financial issues were ongoing and unresolved.
F.2rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person's ControlThe applicant's financial mismanagement and lack of resolution were within her control.

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedApr 18, 2016
Answer filedMay 23, 2016
Hearing heldDec 6, 2016
Decision dateJul 21, 2017

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
Impact of Conflicting Information on Financial Obligations in Security Clearance 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	there is a telephone account with an unpaid balance of $554 that was placed for collection $554	Against Applicant	Unspecified Financial	Denied	—	—	—
1.b	there is an online grocery delivery service account with an unpaid balance of $1,431 that was placed for collection and sold or transferred to a collection agent $1,431	Against Applicant	Unspecified Financial	Denied	—	—	—
1.c	there are two snapshots of the same bank credit card account with an unpaid balance of $1,838 that was placed for collection and sold to a debt purchaser $1,838	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	there is an installment loan account with a past-due balance of $1,144 that was placed for collection and $1,635 was charged off $1,144	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	there is an unspecified type of account with an unpaid balance of $3,753 that was placed for collection and charged off $3,753	Against Applicant	Unspecified Financial	Denied	—	—	—
1.f	there is a bank-issued credit card with an unpaid balance of $1,214 that was placed for collection and charged off $1,214	Against Applicant	Credit Card Debt	Denied	—	—	—
1.h	there is an unspecified type of bank account with an unpaid balance of $541 that was placed for collection and charged off, and later sold $541	Against Applicant	Unspecified Financial	Denied	—	—	—
1.i	there is an automobile loan with an unpaid balance of $9,912 that was placed for collection, charged off, and the vehicle was repossessed $9,912	Against Applicant	Auto Loan Debt	Denied	—	—	—
1.j	there is an unspecified type of bank account with an unpaid balance of $228 that was placed for collection $228	Against Applicant	Unspecified Financial	Denied	—	—	—
1.l	there is a cable television account with an unpaid balance of $51 that was placed for collection $51	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	there is a Government overpayment (a reenlistment bonus) in the amount of $8,424 that was placed for collection $8,424	Against Applicant	Unspecified Financial	Denied	—	—	—
1.n	there is a local library account with an unpaid balance of $88 that was placed for collection $88	Against Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

there is a telephone account with an unpaid balance of $554 that was placed for collection

$554

Against Applicant

Unspecified Financial

Denied

—

1.b

there is an online grocery delivery service account with an unpaid balance of $1,431 that was placed for collection and sold or transferred to a collection agent

$1,431

Against Applicant

Unspecified Financial

Denied

—

1.c

there are two snapshots of the same bank credit card account with an unpaid balance of $1,838 that was placed for collection and sold to a debt purchaser

$1,838

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

there is an installment loan account with a past-due balance of $1,144 that was placed for collection and $1,635 was charged off

$1,144

Against Applicant

Unspecified Financial

Denied

—

1.e

there is an unspecified type of account with an unpaid balance of $3,753 that was placed for collection and charged off

$3,753

Against Applicant

Unspecified Financial

Denied

—

1.f

there is a bank-issued credit card with an unpaid balance of $1,214 that was placed for collection and charged off

$1,214

Against Applicant

Credit Card Debt

Denied

—

1.h

there is an unspecified type of bank account with an unpaid balance of $541 that was placed for collection and charged off, and later sold

$541

Against Applicant

Unspecified Financial

Denied

—

1.i

there is an automobile loan with an unpaid balance of $9,912 that was placed for collection, charged off, and the vehicle was repossessed

$9,912

Against Applicant

Auto Loan Debt

Denied

—

1.j

there is an unspecified type of bank account with an unpaid balance of $228 that was placed for collection

$228

Against Applicant

Unspecified Financial

Denied

—

1.l

there is a cable television account with an unpaid balance of $51 that was placed for collection

$51

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.m

there is a Government overpayment (a reenlistment bonus) in the amount of $8,424 that was placed for collection

$8,424

Against Applicant

Unspecified Financial

Denied

—

1.n

there is a local library account with an unpaid balance of $88 that was placed for collection

$88

Against Applicant

Unspecified Financial

Denied

—

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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

FOOTNOTES