ISCR Case 16-01135.h1

Case Headnote

ISCR Case No. 16-01135.h1

grantedJul 19, 2017· Hon. Wilford H. Ross· hearing

Summary

A 38-year-old Instructional Systems Developer with a bachelor's degree was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant had past-due debts totaling approximately $28,338. These included two medical debts for a minor child, paid in full on July 19, 2016, for $219 and $120, respectively. Another medical debt for a minor child, totaling $311, was paid on September 16, 2016.

Other resolved debts included two parking tickets for $29 and $31, paid on July 14, 2016, and a $97 past-due utility bill, also paid on July 14, 2016. A $445 past-due credit card debt was paid in full for less than the full balance on July 24, 2016. The applicant also made payment arrangements for a $778 past-due credit card debt, making consistent monthly payments since July 2016. For a $10,265 credit card debt, the collection agent ceased efforts and confirmed a $0 balance after the applicant could not validate the debt.

The applicant also made good-faith efforts to resolve two other debts: a $14,835 debt to a finance company and an $848 past-due credit card debt belonging to his wife, neither of which could be confirmed or validated despite repeated attempts. The judge granted the clearance, finding that all debts were resolved or being resolved, and the applicant demonstrated a stable financial situation post-unemployment, with financial issues largely due to circumstances beyond his control.

Why the Applicant Prevailed

Applicant resolved all past-due debts and demonstrated a stable financial situation.
The applicant provided evidence of good-faith efforts to repay creditors and maintain financial stability.
The judge found that the applicant's financial issues were largely due to circumstances beyond his control.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
AG ¶ 20(e)appliedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

SOR issuedJun 27, 2016
Answer filedJul 26, 2016
Hearing heldOct 25, 2016Record left open until November 10, 2016.
Decision dateJul 19, 2017

Cite For

Mitigation of Financial Issues Under Guideline F
Resolution of Debts as a Factor in Security Clearance Eligibility
Consideration of Personal Circumstances Affecting Financial Stability

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 admitted that he owed a creditor $219 for a past-due medical debt regarding one of his minor children. This debt was paid in full on July 19, 2016, as confirmed by a receipt from the creditor. This debt is resolved. $219	For Applicant	Medical Debt	Admitted	—	—	—
1.b	Applicant admitted that he owed a creditor $120 for a past-due medical debt regarding one of his minor children. This debt was paid in full on July 19, 2016, as confirmed by a receipt from the creditor. This debt is resolved. $120	For Applicant	Medical Debt	Admitted	—	—	—
1.c	Applicant admitted that he owed a finance company $14,835. However, Applicant also stated that he could not confirm what the debt was for when he talked to the finance company in July 2016. Applicant testified that at that time he provided the finance company with, “my Social Security number, my current address, the address that I had [in another city], and my name and wife’s name and Social Security number, and there was nothing that came up with any of that information.” This debt only appears on Government Exhibit 4, and not on any of the other credit reports of the Government or Applicant. I find that Applicant has made a good-faith effort to resolve this debt. $14,835	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant admitted owing a collection agent $10,265 for a past-due credit card debt. However, Applicant further stated that he could not remember owning this particular credit card. Applicant’s wife did have a card with that bank. Applicant called the creditor, who could not provide Applicant with validation of the debt or the amount. As a result of not being able to legally validate the debt, the collection agent sent Applicant a letter stating, “In the spirit of good customer service, we are closing the above referenced account. All collection efforts have ceased and will not resume.” The letter also confirmed that the balance owed was $0. This debt is resolved. $10,265	For Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant admitted owing his home city $29 for a parking ticket. He paid this debt on July 14, 2016, as confirmed by a statement from the city treasurer. This debt is resolved. $29	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant admitted owing his home city $31 for a second parking ticket. He paid this debt on July 14, 2016, as confirmed by a statement from the city treasurer. This debt is resolved. $31	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant admitted owing a creditor $778 for a past-due credit card debt. Applicant made a payment arrangement with this creditor whereby he would pay $97.27 a month for eight months to resolve the debt. Applicant submitted documentation from the creditor and his bank to confirm that he has been making consistent monthly payments under the agreement since July 2016. This debt is being resolved. $778	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant admitted that he owed a creditor $311 for a past-due medical debt regarding one of his minor children. This debt was paid in full on September 16, 2016, as confirmed by a receipt from the creditor. This debt is resolved. $311	For Applicant	Medical Debt	Admitted	—	—	—
1.i	Applicant admitted owing $97 for a past-due utility bill. Applicant paid this debt in full on July 14, 2016, as confirmed by a receipt from the utility company. This debt is resolved. $97	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.j	Applicant admitted owing $445 for a past-due credit card debt. Applicant paid the debt in full for less than the full balance on July 24, 2016, as confirmed by a receipt from the bank. This debt is resolved. $445	For Applicant	Credit Card Debt	Admitted	—	—	—
1.k	Applicant admitted owing a past-due credit card debt in the amount of $848. This was a credit card of Applicant’s wife. He was unable to find out any information about this creditor despite repeated attempts. Applicant spoke to the parent company of the bank that issued the credit card, but the parent company was unable to provide Applicant any information. Once again, he provided them with his name, his wife’s name, Social Security numbers, and addresses without success. This debt only appears on Government Exhibit 4, and not on any of the other credit reports of the Government or Applicant. I find that Applicant has made a good-faith effort to resolve this debt. $848	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted that he owed a creditor $219 for a past-due medical debt regarding one of his minor children. This debt was paid in full on July 19, 2016, as confirmed by a receipt from the creditor. This debt is resolved.

$219

For Applicant

Medical Debt

Admitted

—

1.b

Applicant admitted that he owed a creditor $120 for a past-due medical debt regarding one of his minor children. This debt was paid in full on July 19, 2016, as confirmed by a receipt from the creditor. This debt is resolved.

$120

For Applicant

Medical Debt

Admitted

—

1.c

Applicant admitted that he owed a finance company $14,835. However, Applicant also stated that he could not confirm what the debt was for when he talked to the finance company in July 2016. Applicant testified that at that time he provided the finance company with, “my Social Security number, my current address, the address that I had [in another city], and my name and wife’s name and Social Security number, and there was nothing that came up with any of that information.” This debt only appears on Government Exhibit 4, and not on any of the other credit reports of the Government or Applicant. I find that Applicant has made a good-faith effort to resolve this debt.

$14,835

For Applicant

Unspecified Financial

Admitted

—

1.d

Applicant admitted owing a collection agent $10,265 for a past-due credit card debt. However, Applicant further stated that he could not remember owning this particular credit card. Applicant’s wife did have a card with that bank. Applicant called the creditor, who could not provide Applicant with validation of the debt or the amount. As a result of not being able to legally validate the debt, the collection agent sent Applicant a letter stating, “In the spirit of good customer service, we are closing the above referenced account. All collection efforts have ceased and will not resume.” The letter also confirmed that the balance owed was $0. This debt is resolved.

$10,265

For Applicant

Credit Card Debt

Admitted

—

1.e

Applicant admitted owing his home city $29 for a parking ticket. He paid this debt on July 14, 2016, as confirmed by a statement from the city treasurer. This debt is resolved.

$29

For Applicant

Unspecified Financial

Admitted

—

1.f

Applicant admitted owing his home city $31 for a second parking ticket. He paid this debt on July 14, 2016, as confirmed by a statement from the city treasurer. This debt is resolved.

$31

For Applicant

Unspecified Financial

Admitted

—

1.g

Applicant admitted owing a creditor $778 for a past-due credit card debt. Applicant made a payment arrangement with this creditor whereby he would pay $97.27 a month for eight months to resolve the debt. Applicant submitted documentation from the creditor and his bank to confirm that he has been making consistent monthly payments under the agreement since July 2016. This debt is being resolved.

$778

For Applicant

Credit Card Debt

Admitted

—

1.h

Applicant admitted that he owed a creditor $311 for a past-due medical debt regarding one of his minor children. This debt was paid in full on September 16, 2016, as confirmed by a receipt from the creditor. This debt is resolved.

$311

For Applicant

Medical Debt

Admitted

—

1.i

Applicant admitted owing $97 for a past-due utility bill. Applicant paid this debt in full on July 14, 2016, as confirmed by a receipt from the utility company. This debt is resolved.

$97

For Applicant

Utility or Phone Debt

Admitted

—

1.j

Applicant admitted owing $445 for a past-due credit card debt. Applicant paid the debt in full for less than the full balance on July 24, 2016, as confirmed by a receipt from the bank. This debt is resolved.

$445

For Applicant

Credit Card Debt

Admitted

—

1.k

Applicant admitted owing a past-due credit card debt in the amount of $848. This was a credit card of Applicant’s wife. He was unable to find out any information about this creditor despite repeated attempts. Applicant spoke to the parent company of the bank that issued the credit card, but the parent company was unable to provide Applicant any information. Once again, he provided them with his name, his wife’s name, Social Security numbers, and addresses without success. This debt only appears on Government Exhibit 4, and not on any of the other credit reports of the Government or Applicant. I find that Applicant has made a good-faith effort to resolve this debt.

$848

For Applicant

Unspecified Financial

Admitted

—

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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