ISCR Case 15-01807.h1

Case Headnote

ISCR Case No. 15-01807.h1

deniedJan 25, 2017· Hon. Eric H. Borgstrom· hearing

Summary

A 46-year-old applicant, employed full-time by a DOD contractor, was denied a security clearance under Guideline F (Financial Considerations) due to 13 delinquent debts totaling approximately $83,064. The Statement of Reasons (SOR) detailed these financial concerns.

Specifically, the applicant's mortgage loan account was approximately 30 days past due, with an April 2016 credit report showing a $5,359 payment that reduced the past-due amount from an initial approximate $24,296 to $3,427. While consistent payments were made since January 2015, several were less than the required monthly amount. Additionally, ten credit card accounts, ranging from $817 to $6,966, became delinquent in September/October 2009. A judgment of approximately $28,000 was also entered against the applicant in April 2009. The applicant successfully demonstrated that one charged-off credit card account for approximately $1,769 was not hers.

Despite some efforts to address her mortgage debt, the applicant failed to provide sufficient evidence of a plan to resolve her other delinquent debts. The decision concluded that her financial problems were ongoing and unresolved, and she did not demonstrate that her financial issues were under control or that significant efforts had been made to address her debts, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant did not provide sufficient evidence of a plan to resolve her delinquent debts.
The applicant's financial problems were ongoing and unresolved, raising security concerns.
The applicant failed to demonstrate that her financial issues were under control or that she had made significant efforts to address her debts.

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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial indebtedness resulted from her divorce and periods of unemployment.
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant consulted a debt consolidation attorney.
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made good-faith payments on her mortgage.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedOct 26, 2015
Answer filedNov 24, 2015Applicant elected to have the case decided on the written record.
Hearing held—No hearing; decided on the written record.
Decision dateJan 25, 2017

Cite For

Insufficient Evidence of Debt Repayment Plans Under Guideline F
Impact of Divorce on Financial Stability as a Mitigating Factor
Good-faith Efforts in Mortgage Payments as a Mitigating Condition

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 denied that her mortgage loan account (SOR ¶ 1.a.) was past due in the approximate amount of $24,296. Applicant’s April 2016 credit report shows a $5,359 payment, reducing the past-due amount to $3,427. This credit report shows that the mortgage account is approximately 30 days past due. The account history shows consistent payments since January 2015, however, several payments were less than the required scheduled monthly payment. $24,296	For Applicant	Mortgage or Home Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $6,966	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $2,902	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	As to SOR ¶ 1.d., the credit card account charged off in the approximate amount of $1,769, Applicant claimed that this account was not hers but rather her father’s account. Applicant has sufficiently demonstrated that this account is not hers. $1,769	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $1,420	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $1,090	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $835	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $817	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $6,922	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $5,607	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $2,008	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009. $835	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	In about April 2009, a judgment (SOR ¶ 1.m.) against Applicant was entered in favor of a creditor in the approximate amount of $28,000. $28,000	Against Applicant	Judgment Against Applicant	Admitted	(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

Applicant denied that her mortgage loan account (SOR ¶ 1.a.) was past due in the approximate amount of $24,296. Applicant’s April 2016 credit report shows a $5,359 payment, reducing the past-due amount to $3,427. This credit report shows that the mortgage account is approximately 30 days past due. The account history shows consistent payments since January 2015, however, several payments were less than the required scheduled monthly payment.

$24,296

For Applicant

Mortgage or Home Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.b

Applicant’s April 2016 credit report lists ten credit card accounts – SOR ¶ 1.b. ($6,966); ¶ 1.c. ($2,902); ¶ 1.e. ($1,420); ¶ 1.f. (1,090); ¶ 1.g. ($835); ¶ 1.h. ($817); ¶ 1.i. ($6,922); ¶ 1.j. ($5,607); ¶ 1.k. ($2,008); and ¶ 1.l. ($835) – that became delinquent in September/October 2009.

$6,966

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

$2,902

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

As to SOR ¶ 1.d., the credit card account charged off in the approximate amount of $1,769, Applicant claimed that this account was not hers but rather her father’s account. Applicant has sufficiently demonstrated that this account is not hers.

$1,769

For Applicant

Unspecified Financial

Denied

—

1.e

$1,420

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

$1,090

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

$835

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

$817

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

$6,922

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

$5,607

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

$2,008

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

$835

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

In about April 2009, a judgment (SOR ¶ 1.m.) against Applicant was entered in favor of a creditor in the approximate amount of $28,000.

$28,000

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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