ISCR Case 14-04450.h1

Case Headnote

ISCR Case No. 14-04450.h1

deniedDec 6, 2017· Hon. Robert Robinson Gales· hearing

Summary

A 30-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant had multiple delinquent accounts totaling approximately $20,089, which raised concerns about her reliability and trustworthiness.

Specifically, the applicant had a joint automobile installment loan with a charged-off balance of $12,234 from around 2014, which remained delinquent. She stated she attempted to contact her ex-husband for assistance and made repayment arrangements, but provided no documentation to support these claims or any payments. Additionally, an unspecified joint installment account with a charged-off balance of $8,136 from around 2014 also remained delinquent. The applicant reported difficulty locating the account with a collection agent and was unsuccessful in making payment arrangements, again without providing supporting documentation.

The denial was based on the applicant's failure to provide evidence of a plan to resolve her delinquent debts, lack of documentation for claimed repayment arrangements or financial counseling, and the ongoing, unresolved nature of her financial difficulties, which indicated a lack of responsibility.

Why the Applicant Was Denied

The applicant failed to provide evidence of a plan to resolve her delinquent debts.
There was no documentation to support claims of repayment arrangements or financial counseling.
The applicant's financial difficulties were ongoing and unresolved, indicating a lack of responsibility.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond ControlThe applicant noted financial hardships related to her ex-husband's unemployment.
AG ¶ 20(c)rejectedFinancial CounselingNo evidence of financial counseling was provided.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to resolve her debts.

Key Rule Quoted

“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”

Procedural Posture

SOR issuedSep 25, 2014
Answer filedNov 12, 2014Applicant elected to proceed without a hearing.
Hearing held—
Decision dateDec 4, 2017Case assigned to the judge.

Cite For

Insufficient Evidence of Financial Responsibility Under Guideline F
Impact of Unresolved Debts on Security Clearance Eligibility
Importance of Documentation in Mitigating Financial Concerns

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 a joint automobile installment loan with a high credit of $12,234 and past-due balance of $11,263 that was placed for collection. The creditor eventually charged off $12,234 in about 2014. In her Answer to the SOR, Applicant admitted that the account remains delinquent. She explained that she tried to locate her ex-husband for financial assistance to resolve the account, but was unable to contact him. She added that she had made monthly repayment arrangements with the creditor, but failed to furnish any specifics regarding the repayment arrangements. She also failed to submit any documentation, such as letters, receipts, checks, bank account statements, etc., to support her contentions that repayment arrangements have been established, or that payments have been made. The account has not been resolved. $11,263	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	This is an unspecified type of joint installment account with a high credit of $8,136 and past-due balance of $8,076 that was placed for collection. The creditor eventually charged off $8,136 in about 2014. In her Answer to the SOR, Applicant admitted that the account remains delinquent. She repeated the scenario regarding her ex-husband, but added that she had contacted a collection agent to which the account had supposedly been transferred. The new collection agent could not locate the account. Applicant acknowledged that she has been unsuccessful in reaching someone to make payment arrangements in order to settle the debt. She failed to submit any documentation to support her contentions that contacts had been made with the creditor of the collection agent in an effort to resolve the account. The account has not been resolved. $8,076	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a joint automobile installment loan with a high credit of $12,234 and past-due balance of $11,263 that was placed for collection. The creditor eventually charged off $12,234 in about 2014. In her Answer to the SOR, Applicant admitted that the account remains delinquent. She explained that she tried to locate her ex-husband for financial assistance to resolve the account, but was unable to contact him. She added that she had made monthly repayment arrangements with the creditor, but failed to furnish any specifics regarding the repayment arrangements. She also failed to submit any documentation, such as letters, receipts, checks, bank account statements, etc., to support her contentions that repayment arrangements have been established, or that payments have been made. The account has not been resolved.

$11,263

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

This is an unspecified type of joint installment account with a high credit of $8,136 and past-due balance of $8,076 that was placed for collection. The creditor eventually charged off $8,136 in about 2014. In her Answer to the SOR, Applicant admitted that the account remains delinquent. She repeated the scenario regarding her ex-husband, but added that she had contacted a collection agent to which the account had supposedly been transferred. The new collection agent could not locate the account. Applicant acknowledged that she has been unsuccessful in reaching someone to make payment arrangements in order to settle the debt. She failed to submit any documentation to support her contentions that contacts had been made with the creditor of the collection agent in an effort to resolve the account. The account has not been resolved.

$8,076

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(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