ISCR Case 07-13871.h1

Case Headnote

ISCR Case No. 07-13871.h1

grantedFeb 11, 2008· Hon. Edward W. Loughran· hearing

Summary

A 41-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed numerous delinquent debts, including a $4,340 debt to a home improvement retailer, a $2,639 charged-off automobile financing debt from 1998, and various other debts ranging from $50 medical bills to a $1,291 financial institution debt. Several debts were with collection agencies, including a $361 telephone/internet bill from 2001 and a $1,384 account also placed in collection in 2001.

The judge found that the applicant successfully mitigated these financial concerns. The applicant demonstrated a commitment to repaying her debts, establishing payment plans for several obligations. Furthermore, the financial difficulties were largely attributed to circumstances beyond her control, specifically job loss and significant medical expenses.

The applicant's current stable employment and positive character references also supported her reliability and trustworthiness. Based on these mitigating factors, the judge determined that the applicant had resolved the security concerns, and her eligibility for a security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a commitment to repaying her debts and had established payment plans for several obligations.
The financial issues were largely due to circumstances beyond her control, including job loss and medical expenses.
The applicant's current employment and positive character references indicated her reliability and trustworthiness.

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
AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not received financial counseling.
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

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

Procedural Posture

SOR issuedNov 26, 2007
Answer filedDec 19, 2007
Hearing heldJan 30, 2008
Decision dateFeb 28, 2008

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Repay Debts as a Mitigating Factor
Importance of Current Employment and Character References in Security Clearance Decisions

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	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	a debt of $361 to a telephone/internet company placed in collection with a collection company in about October 2001 $361	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	a debt of $413 to the same collection agency as in SOR ¶ 1.b, on behalf of a cable company $413	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	a debt of $422 $422	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Payment Plan with Creditor
1.e	a debt of $4,340 to a home improvement retailer $4,340	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Payment Plan with Creditor
1.f	a debt of $1,384 to a collection company for an account placed in collection in 2001 $1,384	For Applicant	Unspecified Financial	Unknown	—	—	—
1.g	a debt of $840 to a collection company on behalf of an athletic club $840	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Payment Plan with Creditor
1.h	a debt of $1,291 to a financial institution $1,291	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	a debt to an automobile financing company of $2,639, which was charged off in 1998 $2,639	For Applicant	Auto Loan Debt	Denied	—	—	—
1.j	a debt of $1,105 to a financial institution for a credit card account $1,105	For Applicant	Credit Card Debt	Denied	—	—	—
1.k	a debt to a gas and electric utility $654	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.l	a debt of $203 to a collection company on behalf of a telephone services company $203	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.m	two $50 medical debts $100	For Applicant	Medical Debt	Admitted	—	—	Claimed Payment Plan with Creditor
1.n	two $50 medical debts $100	For Applicant	Medical Debt	Admitted	—	—	Claimed Payment Plan with Creditor
1.o	a debt of $1,061 to the same collection company as in SOR ¶ 1.g $1,061	For Applicant	Unspecified Financial	Unknown	—	—	—
1.p	a medical debt of $850 to a collection agency $850	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.q	medical debts to a collection agency in the amounts of $154 $154	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.r	medical debts to a collection agency in the amounts of $284 $284	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.s	a medical debt of $747 $747	For Applicant	Medical Debt	Admitted	—	—	Claimed Payment Plan with Creditor
1.t	a medical debt of $340 to a collection agency $340	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.b

a debt of $361 to a telephone/internet company placed in collection with a collection company in about October 2001

$361

For Applicant

Unspecified Financial

Denied

—

1.c

a debt of $413 to the same collection agency as in SOR ¶ 1.b, on behalf of a cable company

$413

For Applicant

Unspecified Financial

Denied

—

1.d

a debt of $422

$422

For Applicant

Unspecified Financial

Admitted

—

Claimed

Payment Plan with Creditor

1.e

a debt of $4,340 to a home improvement retailer

$4,340

For Applicant

Unspecified Financial

Admitted

—

Claimed

Payment Plan with Creditor

1.f

a debt of $1,384 to a collection company for an account placed in collection in 2001

$1,384

For Applicant

Unspecified Financial

Unknown

—

1.g

a debt of $840 to a collection company on behalf of an athletic club

$840

For Applicant

Unspecified Financial

Admitted

—

Claimed

Payment Plan with Creditor

1.h

a debt of $1,291 to a financial institution

$1,291

For Applicant

Unspecified Financial

Denied

—

1.i

a debt to an automobile financing company of $2,639, which was charged off in 1998

$2,639

For Applicant

Auto Loan Debt

Denied

—

1.j

a debt of $1,105 to a financial institution for a credit card account

$1,105

For Applicant

Credit Card Debt

Denied

—

1.k

a debt to a gas and electric utility

$654

For Applicant

Utility or Phone Debt

Denied

—

1.l

a debt of $203 to a collection company on behalf of a telephone services company

$203

For Applicant

Utility or Phone Debt

Unknown

—

1.m

two $50 medical debts

$100

For Applicant

Medical Debt

Admitted

—

Claimed

Payment Plan with Creditor

1.n

two $50 medical debts

$100

For Applicant

Medical Debt

Admitted

—

Claimed

Payment Plan with Creditor

1.o

a debt of $1,061 to the same collection company as in SOR ¶ 1.g

$1,061

For Applicant

Unspecified Financial

Unknown

—

1.p

a medical debt of $850 to a collection agency

$850

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.q

medical debts to a collection agency in the amounts of $154

$154

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.r

medical debts to a collection agency in the amounts of $284

$284

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.s

a medical debt of $747

$747

For Applicant

Medical Debt

Admitted

—

Claimed

Payment Plan with Creditor

1.t

a medical debt of $340 to a collection agency

$340

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

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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