ISCR Case 14-05253.h1

Case Headnote

ISCR Case No. 14-05253.h1

deniedMay 23, 2018· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 35-year-old former munitions handler was denied a security clearance under Guideline F (Financial Considerations) due to approximately $46,600 in delinquent debts, many of which dated back over a decade. The applicant faced multiple allegations, including a college collection account she disputed as a "mistype" without formal documentation, and several medical collections where her credit report contradicted her claims of payment plans or resolved balances.

Specific debts included a charged-off account where partial payments were made, a telecommunications collection account she claimed was paid in full for a slightly different amount, and a disputed collection recovery effort she believed was settled. She admitted responsibility for some medical collections, while disputing others based on their appearance on her credit report, though her provided report sometimes showed conflicting information.

Additionally, the applicant had two adverse judgments, one from 2013 for $693, which she felt should be split with an ex-boyfriend but had not pursued, and another from 2010 for $3,399 related to a child's birth without health insurance, which she stated she could not address due to court payment policies. The denial was based on her failure to provide adequate documentation of efforts to address her financial issues, obtain medical insurance, or present a reasonable plan to manage her significant debts.

Why the Applicant Was Denied

Applicant has approximately $46,600 in delinquent debts, with many dating back over a decade.
Applicant failed to provide adequate documentation of efforts to address her financial issues or obtain medical insurance coverage.
The applicant's financial situation remains a significant concern, as she did not demonstrate a reasonable plan to manage her debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Inability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant made some payments on her delinquent debts.
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant disputed several accounts, although documentation was lacking.

Key Rule Quoted

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

Procedural Posture

SOR issuedDec 18, 2017
Answer filedJan 25, 2018Requested determination based on written record.
Hearing held—
Decision dateMay 23, 2018

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Importance of Providing Evidence of Financial Management Efforts
Impact of Long-standing Delinquent Debts on Security Clearance Eligibility

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	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	College collection account ($1,179) – Applicant wrote that this entry is a “mistype,” denying she ever attended or took any college courses at this institution. She wrote that she is “in the process of disputing” the related charges, but no documentation reflecting a formal dispute with the entity or a reporting bureau was offered. $1,179	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c–1.h	6 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.i	Charged-off account ($397) – Payments made. Applicant wrote, “I admit the charge off/dispute the balance due.” She attached evidence of payments to her response in the amounts of $30, $129.27, and $133.78 from 2017, amounting to payment of $293.05. $397	For 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	—	Claimed Debt Paid in Full
1.j	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.k	Telecommunications collection account ($356) – Paid or settled. Applicant denies the amount noted, writing: “[the entity] debited, my bank account in the amount of $324.95. This was the amount due. . . .” Applicant provided documentation reflecting a payment of $324.95 was debited from her account to this creditor. $356	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Debt Paid in Full
1.l	Collection recovery effort ($306) – Disputed. Applicant denies this amount because her “credit report does not state this amount due.” She wrote that she attached a credit report providing evidence that a payoff arrangement was created to settle the matter, and that her ability to finance another car through the same entity reflects that the settlement was successful. Her evidence shows she disputed this account. $306	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.m–1.o	3 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.p	Medical collection ($117) – Applicant wrote, “I Admit, the reported amount on my credit report. As of 01/03/2018, my credit report does indicate that I owe the full amount of $117, Medical Amount.” $117	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.q–1.r	2 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.s	Medical collection ($101) – Applicant wrote, “I Deny, the reported amount on my credit report. As of 01/03/2018, my credit report does not state this amount due.” As corroboration that it no longer appears on her credit report, Applicant attached a portion of her recent TransUnion credit report. It reflects, however, a past-due sum of $129. $101	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.t	Medical collection ($99) – Applicant again noted that her recent TransUnion credit report does not reflect this entry. However, it still reflects this sum as past due. $99	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.u–1.x	4 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.y	Adverse judgment filed in April 2013 ($693) – Applicant feels the debt should be split with her ex-boyfriend, with whom she shared the account and service. She told the court this was her reasoning, and was told it is her responsibility to take action against him to collect his half if that is how she wishes to proceed. There is no documentation reflecting any efforts to seek money from her former boyfriend. $693	Against Applicant	Judgment Against Applicant	Denied with Explanation	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.z	Adverse judgment filed in April 2010 ($3,399) – This debt relates to the birth of a child in 2005, when she had no health insurance coverage. Applicant wrote that because the court will not accept monthly payments, she has been unable to address this balance in the interim. $3,399	Against Applicant	Judgment Against Applicant	Denied with Explanation	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.gg	Medical collection ($1,162) – Applicant reported that she is in a monthly repayment plan on this account, but her evidence, a section of her credit report, reflects no payment plan or reduction in balance. The credit reports still shows this amount past due. $1,162	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.hh	Medical collection ($1,138) - Applicant reported that she is in a monthly repayment plan on this account, but her evidence, a section of her credit report, reflects no payment plan or reduction in balance. The credit reports still shows this amount past due. $1,138	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.ii–1.xx	16 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.yy	Medical collection ($102) – Applicant admitted responsibility for this debt and noted that she had spoken with the collection entity. Apparently, no documentation was generated as a result of that conversation. The debt remains delinquent. $102	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.zz	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	(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

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

College collection account ($1,179) – Applicant wrote that this entry is a “mistype,” denying she ever attended or took any college courses at this institution. She wrote that she is “in the process of disputing” the related charges, but no documentation reflecting a formal dispute with the entity or a reporting bureau was offered.

$1,179

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c–1.h

6 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.i

Charged-off account ($397) – Payments made. Applicant wrote, “I admit the charge off/dispute the balance due.” She attached evidence of payments to her response in the amounts of $30, $129.27, and $133.78 from 2017, amounting to payment of $293.05.

$397

For 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

—

Claimed

Debt Paid in Full

1.j

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.k

Telecommunications collection account ($356) – Paid or settled. Applicant denies the amount noted, writing: “[the entity] debited, my bank account in the amount of $324.95. This was the amount due. . . .” Applicant provided documentation reflecting a payment of $324.95 was debited from her account to this creditor.

$356

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Debt Paid in Full

1.l

Collection recovery effort ($306) – Disputed. Applicant denies this amount because her “credit report does not state this amount due.” She wrote that she attached a credit report providing evidence that a payoff arrangement was created to settle the matter, and that her ability to finance another car through the same entity reflects that the settlement was successful. Her evidence shows she disputed this account.

$306

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.m–1.o

3 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.p

Medical collection ($117) – Applicant wrote, “I Admit, the reported amount on my credit report. As of 01/03/2018, my credit report does indicate that I owe the full amount of $117, Medical Amount.”

$117

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.q–1.r

2 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.s

Medical collection ($101) – Applicant wrote, “I Deny, the reported amount on my credit report. As of 01/03/2018, my credit report does not state this amount due.” As corroboration that it no longer appears on her credit report, Applicant attached a portion of her recent TransUnion credit report. It reflects, however, a past-due sum of $129.

$101

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.t

Medical collection ($99) – Applicant again noted that her recent TransUnion credit report does not reflect this entry. However, it still reflects this sum as past due.

$99

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.u–1.x

4 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.y

Adverse judgment filed in April 2013 ($693) – Applicant feels the debt should be split with her ex-boyfriend, with whom she shared the account and service. She told the court this was her reasoning, and was told it is her responsibility to take action against him to collect his half if that is how she wishes to proceed. There is no documentation reflecting any efforts to seek money from her former boyfriend.

$693

Against Applicant

Judgment Against Applicant

Denied with Explanation

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.z

Adverse judgment filed in April 2010 ($3,399) – This debt relates to the birth of a child in 2005, when she had no health insurance coverage. Applicant wrote that because the court will not accept monthly payments, she has been unable to address this balance in the interim.

$3,399

Against Applicant

Judgment Against Applicant

Denied with Explanation

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.gg

Medical collection ($1,162) – Applicant reported that she is in a monthly repayment plan on this account, but her evidence, a section of her credit report, reflects no payment plan or reduction in balance. The credit reports still shows this amount past due.

$1,162

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.hh

Medical collection ($1,138) - Applicant reported that she is in a monthly repayment plan on this account, but her evidence, a section of her credit report, reflects no payment plan or reduction in balance. The credit reports still shows this amount past due.

$1,138

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.ii–1.xx

16 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.yy

Medical collection ($102) – Applicant admitted responsibility for this debt and noted that she had spoken with the collection entity. Apparently, no documentation was generated as a result of that conversation. The debt remains delinquent.

$102

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.zz

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

(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