ISCR Case 15-07861.h1

Case Headnote

ISCR Case No. 15-07861.h1

deniedJul 27, 2017· Hon. Robert Robinson Gales· hearing

Summary

A 44-year-old former U.S. Marine Corps staff sergeant was denied a security clearance under Guideline F, Financial Considerations, due to numerous unresolved delinquent debts totaling approximately $66,039. The applicant faced allegations concerning a home mortgage with a $169,442 unpaid balance, a credit union credit card with an $17,870 past-due balance, and a recreational merchandise account with an $8,644 unpaid balance.

Additional allegations included an automobile loan with a $7,893 unpaid balance, a bank-issued store credit card with a $5,637 unpaid balance that went to judgment, and an electronics store credit card with a $5,339.69 unpaid balance. Other debts involved various bank-issued credit cards with unpaid balances ranging from $4,998.64 to $1,240.97, all placed for collection or sold to debt purchasers, and a cable television account with a $364 unpaid balance.

Despite some efforts, the judge concluded that the applicant did not sufficiently mitigate the security concerns. The denial was based on the significant amount of unresolved or ignored delinquent debts, the failure to provide documentation for claimed resolutions, and an overall indication of a lack of financial control and responsibility.

Why the Applicant Was Denied

The applicant had approximately $66,039 in delinquent debts, many of which were unresolved or ignored.
He failed to provide documentation supporting his claims of debt resolution.
The applicant's financial situation indicated a lack of control and responsibility.

Conditions Referenced

Disqualifying

F.3raisedFailure to Meet Financial Obligations

Mitigating

F.2rejectedThe Conditions That Resulted in Financial Difficulties Were Largely Beyond the Person's ControlThe applicant's financial issues were exacerbated by his underemployment and failure to resolve debts.
F.3rejectedThe Individual Has Made a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsWhile some debts were being addressed, the majority remained unresolved.

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 issuedMar 28, 2016
Answer filedMay 23, 2016
Hearing heldMar 15, 2017
Decision dateJul 27, 2017

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Impact of Financial Distress on Security Clearance Eligibility
Insufficient Evidence of Good Faith Efforts to Resolve Debts

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 home mortgage for $185,913 that became $5,434 past due in 2015, leaving an unpaid balance of $169,442. $169,442	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.b	There is a credit union credit card with a past-due balance of $17,870 that was placed for collection and charged off. $17,870	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.c	There is a recreational merchandise (camper or motor home) account with an unpaid balance of $8,644 that was placed for collection. $8,644	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.d	This is an automobile loan for $35,629 that became $600 past-due, leaving an unpaid balance of $7,893 that was placed for collection. $7,893	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.e	There is a bank-issued store credit card account with an unpaid balance of $5,637 that was charged off in the amount of $5,427.33, that subsequently went to judgment. $5,637	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.f	There is a bank-issued electronics store credit card account with an unpaid balance of $5,339.69 that was placed for collection and charged off. $5,339	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.g	There is a bank-issued credit card with an unpaid balance of $4,998.64 that was placed for collection and sold to a debt purchaser. $4,998	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.h	There is a bank-issued credit card for an electronics store with an unpaid balance of $2,579 that was placed for collection and sold to a debt purchaser. $2,579	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.i	There is a bank-issued department store credit card with an unpaid balance of $1,941.01 that was placed for collection, transferred to another creditor, and sold to a debt purchaser. $1,941	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.m	This is a bank-issued credit card for a home improvement store with a past-due and unpaid balance of $1,240.97, that was placed for collection and sold to a debt purchaser. $1,240	For Applicant	Credit Card Debt	Admitted	—	—	—
1.n	Duplicate of 1.e. (low confidence)	Unknown	Unspecified Financial	Unknown	—	—	—
1.o	Duplicate of 1.h. (low confidence)	Unknown	Unspecified Financial	Unknown	—	—	—
1.p	There is a bank-issued credit card for a home furnishing and electronics store with a high credit of $5,207 that was placed for collection, charged off, and sold to an unidentified debt purchaser. $5,207	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.r	Withdrawn (low confidence)	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.s	There is a cable television account with an unpaid balance of $364 that was placed for collection. $364	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.t	Withdrawn (low confidence)	Withdrawn	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a home mortgage for $185,913 that became $5,434 past due in 2015, leaving an unpaid balance of $169,442.

$169,442

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.b

There is a credit union credit card with a past-due balance of $17,870 that was placed for collection and charged off.

$17,870

Against Applicant

Credit Card Debt

Admitted

—

1.c

There is a recreational merchandise (camper or motor home) account with an unpaid balance of $8,644 that was placed for collection.

$8,644

Against Applicant

Unspecified Financial

Admitted

—

1.d

This is an automobile loan for $35,629 that became $600 past-due, leaving an unpaid balance of $7,893 that was placed for collection.

$7,893

For Applicant

Auto Loan Debt

Admitted

—

1.e

There is a bank-issued store credit card account with an unpaid balance of $5,637 that was charged off in the amount of $5,427.33, that subsequently went to judgment.

$5,637

Against Applicant

Judgment Against Applicant

Admitted

—

1.f

There is a bank-issued electronics store credit card account with an unpaid balance of $5,339.69 that was placed for collection and charged off.

$5,339

Against Applicant

Credit Card Debt

Admitted

—

1.g

There is a bank-issued credit card with an unpaid balance of $4,998.64 that was placed for collection and sold to a debt purchaser.

$4,998

Against Applicant

Credit Card Debt

Admitted

—

1.h

There is a bank-issued credit card for an electronics store with an unpaid balance of $2,579 that was placed for collection and sold to a debt purchaser.

$2,579

Against Applicant

Credit Card Debt

Admitted

—

1.i

There is a bank-issued department store credit card with an unpaid balance of $1,941.01 that was placed for collection, transferred to another creditor, and sold to a debt purchaser.

$1,941

Against Applicant

Credit Card Debt

Admitted

—

1.m

This is a bank-issued credit card for a home improvement store with a past-due and unpaid balance of $1,240.97, that was placed for collection and sold to a debt purchaser.

$1,240

For Applicant

Credit Card Debt

Admitted

—

1.n

Duplicate of 1.e. (low confidence)

Unknown

Unspecified Financial

Unknown

—

1.o

Duplicate of 1.h. (low confidence)

Unknown

Unspecified Financial

Unknown

—

1.p

There is a bank-issued credit card for a home furnishing and electronics store with a high credit of $5,207 that was placed for collection, charged off, and sold to an unidentified debt purchaser.

$5,207

Against Applicant

Credit Card Debt

Admitted

—

1.r

Withdrawn (low confidence)

Withdrawn

Unspecified Financial

Unknown

—

1.s

There is a cable television account with an unpaid balance of $364 that was placed for collection.

$364

Against Applicant

Utility or Phone Debt

Admitted

—

1.t

Withdrawn (low confidence)

Withdrawn

Unspecified Financial

Unknown

—

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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