ISCR Case 15-01557.h1

Case Headnote

ISCR Case No. 15-01557.h1

grantedSep 13, 2016· Hon. David M. White· hearing

Summary

The applicant, a 49-year-old engineer with a history of military service, faced security concerns under Guideline F due to previously delinquent debts incurred without his knowledge, primarily due to his wife's financial issues related to clinical depression. He took responsible steps to resolve all debts, demonstrating financial responsibility and stability, leading to a decision to grant his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a describes a $371 debt originally owed to a major telephone company that became delinquent in January 2015. Applicant had to contact the company involved on several occasions before he could find anyone who could identify what it involved. He finally determined that it apparently arose from a switch-over of his phone service, and made full payment to the debt collection service that was then holding the account on November 7, 2015 (1.a). SOR ¶ 1.b describes a $20,780 debt arising from a joint credit card account that was opened in 2005 and used by Applicant’s wife without his knowledge. Both accounts became delinquent, at their respective credit limits, in August 2012. During that period, his wife was suffering from clinical depression and self-medicated by shopping extensively. She has since been diagnosed with, and received successful medical and psychological treatment for her depression. She remains under continuing care from her physician, and no longer uses credit cards (1.b). SOR ¶ 1.c describes a $10,567 debt arising from a joint credit card account that was opened in 2005 and used by Applicant’s wife without his knowledge. Both accounts became delinquent, at their respective credit limits, in August 2012. During that period, his wife was suffering from clinical depression and self-medicated by shopping extensively. She has since been diagnosed with, and received successful medical and psychological treatment for her depression. She remains under continuing care from her physician, and no longer uses credit cards (1.c). SOR ¶ 1.d describes a $59 medical debt arising from an April 2014 hospital visit by his daughter. It was placed for collection in September 2014 after the original creditor failed to submit it to Applicant’s medical insurance company. Applicant unsuccessfully attempted to get the debt processed through his insurance, then paid the debt himself on October 31, 2015, in order to resolve it (1.d).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: All previously delinquent debts were resolved and paid in full; The applicant took responsible steps to address debts incurred without his knowledge; The applicant's financial situation is stable, with a significant monthly surplus.

Why the Applicant Prevailed

All previously delinquent debts were resolved and paid in full.
The applicant took responsible steps to address debts incurred without his knowledge.
The applicant's financial situation is stable, with a significant monthly surplus.

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
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 issuedOct 7, 2015
Answer filedNov 9, 2015
Hearing held—Decided on the written record without a hearing.
Decision dateSep 13, 2016

Cite For

Mitigation of Financial Concerns Under Guideline F
Responsible Steps Taken 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	SOR ¶ 1.a describes a $371 debt originally owed to a major telephone company that became delinquent in January 2015. Applicant had to contact the company involved on several occasions before he could find anyone who could identify what it involved. He finally determined that it apparently arose from a switch-over of his phone service, and made full payment to the debt collection service that was then holding the account on November 7, 2015. $371	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	SOR ¶ 1.b describes a $20,780 debt arising from a joint credit card account that was opened in 2005 and used by Applicant’s wife without his knowledge. Both accounts became delinquent, at their respective credit limits, in August 2012. During that period, his wife was suffering from clinical depression and self-medicated by shopping extensively. She has since been diagnosed with, and received successful medical and psychological treatment for her depression. She remains under continuing care from her physician, and no longer uses credit cards. $20,780	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	SOR ¶ 1.c describes a $10,567 debt arising from a joint credit card account that was opened in 2005 and used by Applicant’s wife without his knowledge. Both accounts became delinquent, at their respective credit limits, in August 2012. During that period, his wife was suffering from clinical depression and self-medicated by shopping extensively. She has since been diagnosed with, and received successful medical and psychological treatment for her depression. She remains under continuing care from her physician, and no longer uses credit cards. $10,567	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	SOR ¶ 1.d describes a $59 medical debt arising from an April 2014 hospital visit by his daughter. It was placed for collection in September 2014 after the original creditor failed to submit it to Applicant’s medical insurance company. Applicant unsuccessfully attempted to get the debt processed through his insurance, then paid the debt himself on October 31, 2015, in order to resolve it. $59	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a describes a $371 debt originally owed to a major telephone company that became delinquent in January 2015. Applicant had to contact the company involved on several occasions before he could find anyone who could identify what it involved. He finally determined that it apparently arose from a switch-over of his phone service, and made full payment to the debt collection service that was then holding the account on November 7, 2015.

$371

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b

SOR ¶ 1.b describes a $20,780 debt arising from a joint credit card account that was opened in 2005 and used by Applicant’s wife without his knowledge. Both accounts became delinquent, at their respective credit limits, in August 2012. During that period, his wife was suffering from clinical depression and self-medicated by shopping extensively. She has since been diagnosed with, and received successful medical and psychological treatment for her depression. She remains under continuing care from her physician, and no longer uses credit cards.

$20,780

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c describes a $10,567 debt arising from a joint credit card account that was opened in 2005 and used by Applicant’s wife without his knowledge. Both accounts became delinquent, at their respective credit limits, in August 2012. During that period, his wife was suffering from clinical depression and self-medicated by shopping extensively. She has since been diagnosed with, and received successful medical and psychological treatment for her depression. She remains under continuing care from her physician, and no longer uses credit cards.

$10,567

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

SOR ¶ 1.d describes a $59 medical debt arising from an April 2014 hospital visit by his daughter. It was placed for collection in September 2014 after the original creditor failed to submit it to Applicant’s medical insurance company. Applicant unsuccessfully attempted to get the debt processed through his insurance, then paid the debt himself on October 31, 2015, in order to resolve it.

$59

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

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

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES