ISCR Case 14-02517.h1

Case Headnote

ISCR Case No. 14-02517.h1

grantedJun 30, 2016· Hon. Paul J. Mason· hearing

Summary

A 49-year-old mail clerk's security clearance was granted despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding ten delinquent debts totaling approximately $54,359, which included credit card balances, medical bills, and home equity lines of credit (HELOCs), as well as a real estate mortgage. These financial issues were primarily attributed to significant economic and medical hardships.

Specific allegations detailed various delinquencies, such as a $1,003 credit card debt from October 2011 that resulted in a judgment, and a $3,296 credit card debt from August 2011 also leading to a judgment. Other debts included two HELOCs, each for $1,809 and $24,443, which became delinquent in March and July 2013, respectively. Two medical accounts, for $100 and $96, were also cited, with the applicant stating he would pay them upon locating the creditors.

The judge ultimately granted the clearance, finding that the applicant had made substantial progress in addressing his debts. This included paying off three accounts and making regular payments on his mortgage. The decision also considered that the financial difficulties were largely due to circumstances beyond his control, such as unemployment and his wife's medical issues, and noted his ongoing financial counseling and responsible budgeting practices.

Why the Applicant Prevailed

The applicant demonstrated significant progress in resolving his delinquent debts, having paid off three of seven accounts.
He provided evidence of ongoing financial counseling and responsible budgeting practices.
The financial difficulties were largely due to circumstances beyond his control, including unemployment and his wife's medical issues.

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 and the Individual Acted Responsibly Under the Circumstances
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

“The ultimate determination of whether to grant eligibility for a security clearance must be a commonsense judgment based on careful consideration of the guidelines and the whole-person concept.”

Procedural Posture

SOR issuedJul 21, 2014
Answer filedAug 10, 2014
Hearing heldApr 27, 2015
Decision dateJun 30, 2016

Cite For

Mitigation of Financial Issues Under Guideline F Due to Extenuating Circumstances
Evidence of Financial Counseling as a Mitigating Factor
Progress in Debt Repayment as Indicative of Reliability and Trustworthiness

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	$1,003, credit card. The account became delinquent in October 2011. The original creditor sold the account to a collection agency that filed a judgment in November 2013. $1,003	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	$124, credit card. The account became delinquent in June 2013. Applicant testified that he paid the account, but presented no supporting documentation. The account appears in both government credit reports, but does not appear in Applicant’s May 2015 credit report. $124	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	$100, medical account. The account became delinquent in July 2009. The accounts appear in the government’s credit reports, but not in Applicant’s May 2015 report. He stated in his answer to the SOR that he would pay both accounts when he locates the creditor. $100	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	$96, medical account. The account became delinquent in July 2012. The accounts appear in the government’s credit reports, but not in Applicant’s May 2015 report. He stated in his answer to the SOR that he would pay both accounts when he locates the creditor. $96	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	$3,296, credit card. The account became delinquent in August 2011, and appears in the government and Applicant’s credit reports. The collection agency filed a judgment in July 2013. $3,296	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	$1,809, home equity line of credit (HELOC). The account became delinquent in March 2013. The account appears in July 2013 government credit report, but not in the more recent May 2014 government credit report. The account does not appear in Applicant’s May 2015 credit report. $1,809	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	$24,443, HELOC. This account became delinquent in July 2013. The account is entered twice in the government’s July 2013 credit report, once as a HELOC and once as an unidentified loan. The account is classified as open in the first entry and closed in the second entry. Both entries show the account as charged off. $24,443	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	$1,809, home equity line of credit (HELOC). The account became delinquent in March 2013. The account appears in July 2013 government credit report, but not in the more recent May 2014 government credit report. The account does not appear in Applicant’s May 2015 credit report. $1,809	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	$24,443, HELOC. This account became delinquent in July 2013. The account is entered twice in the government’s July 2013 credit report, once as a HELOC and once as an unidentified loan. The account is classified as open in the first entry and closed in the second entry. Both entries show the account as charged off. $24,443	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	$23,291, real estate mortgage. The account became delinquent in March 2013. Applicant indicated the account was transferred to a second mortgagor. The government’s May 2014 credit report reflects that the SOR mortgagor opened the account in 2006 with the account becoming delinquent in December 2013. $23,291	For Applicant	Mortgage or Home Loan 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

$1,003, credit card. The account became delinquent in October 2011. The original creditor sold the account to a collection agency that filed a judgment in November 2013.

$1,003

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.b

$124, credit card. The account became delinquent in June 2013. Applicant testified that he paid the account, but presented no supporting documentation. The account appears in both government credit reports, but does not appear in Applicant’s May 2015 credit report.

$124

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

$100, medical account. The account became delinquent in July 2009. The accounts appear in the government’s credit reports, but not in Applicant’s May 2015 report. He stated in his answer to the SOR that he would pay both accounts when he locates the creditor.

$100

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

$96, medical account. The account became delinquent in July 2012. The accounts appear in the government’s credit reports, but not in Applicant’s May 2015 report. He stated in his answer to the SOR that he would pay both accounts when he locates the creditor.

$96

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

$3,296, credit card. The account became delinquent in August 2011, and appears in the government and Applicant’s credit reports. The collection agency filed a judgment in July 2013.

$3,296

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.f

$1,809, home equity line of credit (HELOC). The account became delinquent in March 2013. The account appears in July 2013 government credit report, but not in the more recent May 2014 government credit report. The account does not appear in Applicant’s May 2015 credit report.

$1,809

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

$24,443, HELOC. This account became delinquent in July 2013. The account is entered twice in the government’s July 2013 credit report, once as a HELOC and once as an unidentified loan. The account is classified as open in the first entry and closed in the second entry. Both entries show the account as charged off.

$24,443

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

$1,809

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

$24,443

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

$23,291, real estate mortgage. The account became delinquent in March 2013. Applicant indicated the account was transferred to a second mortgagor. The government’s May 2014 credit report reflects that the SOR mortgagor opened the account in 2006 with the account becoming delinquent in December 2013.

$23,291

For Applicant

Mortgage or Home Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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