ISCR Case 09-05184.h1

Case Headnote

ISCR Case No. 09-05184.h1

grantedJul 1, 2009· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 32-year-old training lead for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant had accumulated approximately $34,000 in delinquent debt, primarily stemming from his wife's job loss in 2007.

The Statement of Reasons detailed nine specific financial allegations. Seven of these were collection or charge-off accounts ranging from $22 to $2,786, all of which the applicant provided evidence of having paid in full between October 2009 and March 2010. For the remaining two debts, a $8,604 collection account had a negotiated settlement and payment plan, though repayment had not yet begun. A $20,543 charge-off auto loan, with an actual balance of $15,742, was in repayment following a settlement negotiated in December 2009.

The clearance was granted because the applicant admitted to the financial issues and demonstrated significant repayment efforts, having paid seven of the nine listed debts and established repayment plans for the others. His financial situation had improved due to a substantial increase in household income, and he had received financial counseling.

Why the Applicant Prevailed

The applicant admitted to the financial issues but provided evidence of significant repayment efforts.
He had paid seven of the nine debts listed in the SOR and was in a repayment plan for the remaining debts.
The applicant's financial situation improved with a substantial increase in household income and he received financial counseling.

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 and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior 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 protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedDec 16, 2009
Answer filedJan 25, 2010
Hearing heldJun 15, 2010
Decision dateAug 6, 2010

Cite For

Mitigation of Financial Issues Under Guideline F
Impact of Improved Financial Circumstances on Security Clearance Eligibility
Consideration of the Whole-person Concept in Security Clearance Decisions

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	Collection account ($515) – Paid. Applicant provided evidence that the account for this credit service was paid in full on or before November 3, 2009. $515	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Collection account ($122) – Paid. Applicant provided evidence that the account for this credit service was paid on or about November 2, 2009. $122	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Collection account ($8,604) – Payment plan negotiated. Applicant has worked out a settlement amount and payment plan on this disputed furniture company account balance, although repayment has yet to commence. $8,604	For Applicant	Unspecified Financial	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 Settlement
1.d	Medical collection account ($22) – Paid. Applicant provided evidence that the balance owed on this hospital emergency room account for a co-payment was paid between November 2, 2009, and November 6, 2009. $22	For Applicant	Medical Debt	Admitted	—	—	—
1.e	Collection account ($541) – Paid. Applicant provided evidence that the balance for this utility account was paid on or about January 15, 2010. $541	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.f	Charge-off account ($2,786) – Paid. Applicant provided evidence that the balance for this account was paid on or before March 26, 2010. $2,786	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Charge-off account ($20,543) – In repayment. Applicant negotiated a settlement on this auto loan debt in December 2009, the actual balance of which was $15,742. Payments on the loan were missed when Applicant’s wife lost her job in 2007. $20,543	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts	(c) received/receiving counseling; problem being resolved	Documented Payment Plan with Creditor
1.h	Telecommunication collection ($365) – Paid. Applicant provided evidence this balance was satisfied on or before January 18, 2010. $365	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.i	Collection account ($274) – Paid. Applicant provided evidence that this debt was paid in full between October 30, 2009, and November 2, 2009. $274	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Collection account ($515) – Paid. Applicant provided evidence that the account for this credit service was paid in full on or before November 3, 2009.

$515

For Applicant

Unspecified Financial

Admitted

—

1.b

Collection account ($122) – Paid. Applicant provided evidence that the account for this credit service was paid on or about November 2, 2009.

$122

For Applicant

Unspecified Financial

Admitted

—

1.c

Collection account ($8,604) – Payment plan negotiated. Applicant has worked out a settlement amount and payment plan on this disputed furniture company account balance, although repayment has yet to commence.

$8,604

For Applicant

Unspecified Financial

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 Settlement

1.d

Medical collection account ($22) – Paid. Applicant provided evidence that the balance owed on this hospital emergency room account for a co-payment was paid between November 2, 2009, and November 6, 2009.

$22

For Applicant

Medical Debt

Admitted

—

1.e

Collection account ($541) – Paid. Applicant provided evidence that the balance for this utility account was paid on or about January 15, 2010.

$541

For Applicant

Utility or Phone Debt

Admitted

—

1.f

Charge-off account ($2,786) – Paid. Applicant provided evidence that the balance for this account was paid on or before March 26, 2010.

$2,786

For Applicant

Unspecified Financial

Admitted

—

1.g

Charge-off account ($20,543) – In repayment. Applicant negotiated a settlement on this auto loan debt in December 2009, the actual balance of which was $15,742. Payments on the loan were missed when Applicant’s wife lost her job in 2007.

$20,543

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) received/receiving counseling; problem being resolved

Documented

Payment Plan with Creditor

1.h

Telecommunication collection ($365) – Paid. Applicant provided evidence this balance was satisfied on or before January 18, 2010.

$365

For Applicant

Utility or Phone Debt

Admitted

—

1.i

Collection account ($274) – Paid. Applicant provided evidence that this debt was paid in full between October 30, 2009, and November 2, 2009.

$274

For Applicant

Unspecified Financial

Admitted

—

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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