ISCR Case 07-15051.h1

Case Headnote

ISCR Case No. 07-15051.h1

grantedJun 17, 2009· Hon. Henry Lazzaro· hearing

Summary

A 28-year-old security officer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed several delinquent debts, including medical expenses totaling $242, which were paid in full on May 15, 2009, along with three unlisted debts. Other resolved debts included a $295 telephone company collection account settled in full by April 27, 2009, and a $207 utility bill paid in full on the same date. A $766 credit card debt was settled for less than the full amount on May 13, 2009.

Additionally, a $90 charged-off account was paid in full by February 2004, and a $1,038 charged-off credit card account was satisfied and closed by April 2008. The SOR also noted a $2,433 debt from a jewelry store, opened in either October 1999 or October 2000, and an adjustable rate mortgage acquired in October 2003.

The clearance was granted because the applicant resolved most of his delinquent debts and was addressing the remaining issues. His financial difficulties were largely attributed to his wife's unemployment, a factor beyond his control. Furthermore, he demonstrated improved financial stability through a promotion and increased salary.

Why the Applicant Prevailed

Applicant resolved most of his delinquent debts and is taking steps to address remaining issues.
He provided evidence of a promotion and increased salary, indicating improved financial stability.
The financial difficulties were largely due to his wife's loss of employment, which was beyond his control.

Conditions Referenced

Disqualifying

DC 19(a)raisedInability or Unwillingness to Satisfy Debts
DC 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

MC 20(a)appliedThe Behavior Occurred Under Such Circumstances That It Is Unlikely to Recur
MC 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
MC 20(c)appliedThere Are Clear Indications That the Problem Is Being Resolved or Is Under Control
MC 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”

Procedural Posture

SOR issuedNov 24, 2008
Answer filedDec 23, 2008
Hearing heldApr 28, 2009
Decision dateJun 17, 2009

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond the Applicant's Control
Demonstrating Good-faith Efforts to Resolve Debts
Consideration of the Whole Person Concept 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	The debts listed in SOR subparagraphs 1.a-1.c, owing in the total amount of $242, arose from medical expenses. Applicant paid those debts, and apparently three others that were not listed in the SOR, in full on May 15, 2009. $242	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	The collection debt listed in subparagraph 1.d, owing in the amount of $295, was originally owed to a telephone company. This account was settled-in-full as of April 27, 2009. $295	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	The collection debt listed in subparagraph 1.h, owing in the amount of $207, was originally a utility bill. This account was paid-in-full on April 27, 2009. $207	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	The debt listed in subparagraph 1.I, owing in the amount of $766, arose from a credit card account. This account was settled-in-full for less than the full amount owing on May 13, 2009. $766	For Applicant	Credit Card Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	The charged off account listed in subparagraph 1.k, owing in the amount of $90, was actually paid-in-full as February 2004. $90	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	The charged off credit card account listed in subparagraph 1.m, owing in the amount of $1,038, was satisfied and closed as of April 2008. $1,038	For Applicant	Credit Card Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	The debt alleged in subparagraph 1.l, owing in the amount of $2,433, is from a jewelry store. The entries in Applicant’s CBRs indicate the account was opened in either October 1999 or October 2000. $2,433	For Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.h	The final account alleged in the SOR is subparagraph 1.g and pertains to the mortgage on Applicant’s residence. Applicant testified the lender talked him into acquiring an adjustable rate mortgage in October 2003. $16,778	For Applicant	Mortgage or Home Loan Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Financial Event Outside Control
1.i	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Withdrawn (low confidence)	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.k–1.n	4 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debts listed in SOR subparagraphs 1.a-1.c, owing in the total amount of $242, arose from medical expenses. Applicant paid those debts, and apparently three others that were not listed in the SOR, in full on May 15, 2009.

$242

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.b

The collection debt listed in subparagraph 1.d, owing in the amount of $295, was originally owed to a telephone company. This account was settled-in-full as of April 27, 2009.

$295

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.c

The collection debt listed in subparagraph 1.h, owing in the amount of $207, was originally a utility bill. This account was paid-in-full on April 27, 2009.

$207

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.d

The debt listed in subparagraph 1.I, owing in the amount of $766, arose from a credit card account. This account was settled-in-full for less than the full amount owing on May 13, 2009.

$766

For Applicant

Credit Card Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.e

The charged off account listed in subparagraph 1.k, owing in the amount of $90, was actually paid-in-full as February 2004.

$90

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.f

The charged off credit card account listed in subparagraph 1.m, owing in the amount of $1,038, was satisfied and closed as of April 2008.

$1,038

For Applicant

Credit Card Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

The debt alleged in subparagraph 1.l, owing in the amount of $2,433, is from a jewelry store. The entries in Applicant’s CBRs indicate the account was opened in either October 1999 or October 2000.

$2,433

For Applicant

Unspecified Financial

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.h

The final account alleged in the SOR is subparagraph 1.g and pertains to the mortgage on Applicant’s residence. Applicant testified the lender talked him into acquiring an adjustable rate mortgage in October 2003.

$16,778

For Applicant

Mortgage or Home Loan Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

Claimed

Financial Event Outside Control

1.i

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.j

Withdrawn (low confidence)

Withdrawn

Unspecified Financial

Unknown

—

1.k–1.n

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

For Applicant

—

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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

PROCEDURAL MATTERS

FINDINGS OF FACT

POLICIES

ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES