ISCR Case 15-03861.h1

Case Headnote

ISCR Case No. 15-03861.h1

grantedJan 13, 2017· Hon. Juan J. Rivera· hearing

Summary

A 45-year-old federal contractor and retired Navy chief petty officer was granted a security clearance under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from a divorce and subsequent unemployment, which were deemed circumstances beyond his control.

The Statement of Reasons detailed several financial allegations. These included a delinquent credit card account for which he established a $500 monthly payment plan in December 2015, reducing the debt by $2,000 by April 2016. Another loan in collections led to a $506 monthly payment plan, also initiated around December 2015, with a $2,533 reduction by April 2016. A consumer credit card account was paid in January 2016, and a 2012 utility services debt, initially disputed, was ultimately paid. Additionally, there were collections for unpaid medical services, which the applicant explained were due to the provider attempting to collect from the wrong insurance company, resulting in denied claims.

The judge found that the applicant demonstrated responsible financial behavior by establishing payment plans and resolving several debts. Mitigating conditions were applied, recognizing his efforts to address the issues. The applicant's understanding of financial responsibility and his track record of debt resolution were key factors in the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant's financial problems were caused by circumstances beyond his control, including divorce and unemployment.
He established a track record of debt payment and resolution, having paid off several debts and set up payment plans for others.
The applicant demonstrated an understanding of the need for financial responsibility to maintain his security clearance.

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 Control
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“[T]he concept of meaningful track record necessarily includes evidence of actual debt reduction through payment of debts.”
— ISCR Case No. 07-06482 at 2-3 (App. Bd. May 21, 2008)

Procedural Posture

SOR issuedMar 18, 2016
Answer filedApr 21, 2016Requested a decision based on the written record.
Hearing held—
Decision dateJan 13, 2017

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Establishment of a Meaningful Track Record of Debt Repayment
Good Faith Efforts to Resolve 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	This is Applicant’s delinquent credit card account. He established a monthly $500 payment plan around December 2015. He claimed that as of April 2016 he had reduced his debt by $2,000. $22,954	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 (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.b	Applicant admitted this is a collection for one of his loans. He established a monthly $506 payment plan around December 2015. He claimed that as of April 2016 he had reduced his debt by $2,533. $3,546	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 (d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.c	This was Applicant’s delinquent consumer credit card account. He presented documentary evidence showing the account was paid in January 2016. $1,732	For Applicant	Credit Card Debt	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	This was a 2012 utility services debt that Applicant believed should have been resolved with the short sale of his property. He claimed he initially disputed the debt, but ended up paying it. $803	For Applicant	Utility or Phone 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 (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.e	These were collections for unpaid medical services Applicant received. Applicant explained the provider attempted to collect from the wrong insurance company and the claims were denied. $571	For Applicant	Medical Debt	Denied	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.f	These were collections for unpaid medical services Applicant received. Applicant explained the provider attempted to collect from the wrong insurance company and the claims were denied. $181	For Applicant	Medical Debt	Denied	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is Applicant’s delinquent credit card account. He established a monthly $500 payment plan around December 2015. He claimed that as of April 2016 he had reduced his debt by $2,000.

$22,954

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

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

Claimed

Debt Paid in Full

1.b

Applicant admitted this is a collection for one of his loans. He established a monthly $506 payment plan around December 2015. He claimed that as of April 2016 he had reduced his debt by $2,533.

$3,546

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

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

Claimed

Payment Plan with Creditor

1.c

This was Applicant’s delinquent consumer credit card account. He presented documentary evidence showing the account was paid in January 2016.

$1,732

For Applicant

Credit Card Debt

Denied

—

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

Documented

Debt Paid in Full

1.d

This was a 2012 utility services debt that Applicant believed should have been resolved with the short sale of his property. He claimed he initially disputed the debt, but ended up paying it.

$803

For Applicant

Utility or Phone 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

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

Claimed

Debt Paid in Full

1.e

These were collections for unpaid medical services Applicant received. Applicant explained the provider attempted to collect from the wrong insurance company and the claims were denied.

$571

For Applicant

Medical Debt

Denied

—

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

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

Claimed

Debt Paid in Full

1.f

These were collections for unpaid medical services Applicant received. Applicant explained the provider attempted to collect from the wrong insurance company and the claims were denied.

$181

For Applicant

Medical Debt

Denied

—

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

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

Claimed

Debt Paid in Full

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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