ISCR Case 07-15153.h1

Case Headnote

ISCR Case No. 07-15153.h1

grantedJul 1, 2007· Hon. LeRoy F. Foreman· hearing

Summary

A 38-year-old digital test technician was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited four delinquent debts totaling $23,381, including a significant student loan.

The applicant successfully addressed each debt. A medical debt from a 2004 accident, initially $851, was largely paid, with the applicant willing to resolve the remaining $95 if the creditor could be identified. A $2,994 utility bill from 2005, which included a water heater installation, was paid in full. A $55 delinquent credit card debt from 2006 was settled for $600 in January 2008.

For the largest debt, a $20,237 student loan from around 1988, the applicant entered a rehabilitation program. He began making $220 monthly payments via automatic debit in January 2008, after discovering the delinquency during a security interview. The judge granted the clearance, noting the applicant's proactive measures, regular payments on the student loan, full resolution of other debts, and credible testimony demonstrating current financial responsibility.

Why the Applicant Prevailed

Applicant paid off all debts except the student loan and has been making regular payments on it for six months.
He demonstrated proactive measures to address his financial issues after becoming aware of them.
The applicant's current financial situation shows he is capable of managing his obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 19(e)raisedConsistent Spending Beyond One's Means

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago or InfrequentlyThe medical bills were resolved and unlikely to recur.
AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe automobile accident causing medical bills was beyond the applicant's control.
AG ¶ 20(c)appliedCounseling or Clear Indications of ResolutionThe applicant's financial problems appear to be under control.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant took prompt action to resolve his debts upon learning of them.
AG ¶ 20(e)appliedDispute Legitimacy of Past-due DebtThe applicant resolved debts and is willing to pay remaining amounts if creditors are identified.

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
— Executive Order 10865

Procedural Posture

SOR issuedMar 13, 2008
Answer filedMar 31, 2008
Hearing heldJun 17, 2008Hearing rescheduled from May 28, 2008.
Decision dateJul 2, 2008

Cite For

Mitigation of Financial Concerns Under Guideline F
Proactive Measures in Addressing Delinquent Debts
Whole Person Concept in Security Clearance Evaluations

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 medical debt was for treatment of Applicant’s injuries in an automobile accident in 2004. He thought all medical bills had been paid by insurance, but his credit report reflected a delinquent debt for $851. He contacted the collection agency and paid $756, the amount the agency claimed due on the account. He has been unable to identify the creditor, if any, for the remaining $95 listed on his credit report, but is willing to pay it if the creditor can be identified. $851	For Applicant	Medical Debt	Admitted	—	(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 (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full Claimed Other
1.b	The utility bill in SOR ¶ 1.b arose after Applicant sold his house in 2005. The utility company had been estimating his bills, but they read the meter after Applicant moved and determined he owed $2,994. This bill appears to include the cost of installing a water heater. The debt has been paid in full. $2,994	For Applicant	Utility or Phone Debt	Admitted	—	(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 (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.c	The $55 delinquent credit card debt alleged in SOR ¶ 1.c was on an account opened in 2006. In January 2008, Applicant received an offer to settle the account for $600, paid it, and received a letter from the collection attorneys stating the account had been settled. $55	For Applicant	Credit Card Debt	Admitted	—	(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 (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.d	Applicant is in a loan rehabilitation program for the delinquent student loan alleged in SOR ¶ 1.d. Applicant’s mother co-signed his student loans around 1988, and applicant sent his mother $150 per month to pay the loans starting in 2000. He was unaware that there were two separate loans and his mother was not making the payments on one of them. He discovered the account was delinquent when he was interviewed by a security investigator. His credit reports reflected that the last activity on this account, with a balance of $20,237, was in February 2004. He has been making monthly payments of $220 by automatic debit from his checking account since January 2008. If he adheres to the monthly payment plan, his account will be rehabilitated and considered current after he makes the October 2008 payment. $20,237	For Applicant	Student Loan Debt	Admitted	—	(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	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The medical debt was for treatment of Applicant’s injuries in an automobile accident in 2004. He thought all medical bills had been paid by insurance, but his credit report reflected a delinquent debt for $851. He contacted the collection agency and paid $756, the amount the agency claimed due on the account. He has been unable to identify the creditor, if any, for the remaining $95 listed on his credit report, but is willing to pay it if the creditor can be identified.

$851

For Applicant

Medical Debt

Admitted

—

(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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

Claimed

Other

1.b

The utility bill in SOR ¶ 1.b arose after Applicant sold his house in 2005. The utility company had been estimating his bills, but they read the meter after Applicant moved and determined he owed $2,994. This bill appears to include the cost of installing a water heater. The debt has been paid in full.

$2,994

For Applicant

Utility or Phone Debt

Admitted

—

(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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.c

The $55 delinquent credit card debt alleged in SOR ¶ 1.c was on an account opened in 2006. In January 2008, Applicant received an offer to settle the account for $600, paid it, and received a letter from the collection attorneys stating the account had been settled.

$55

For Applicant

Credit Card Debt

Admitted

—

(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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.d

Applicant is in a loan rehabilitation program for the delinquent student loan alleged in SOR ¶ 1.d. Applicant’s mother co-signed his student loans around 1988, and applicant sent his mother $150 per month to pay the loans starting in 2000. He was unaware that there were two separate loans and his mother was not making the payments on one of them. He discovered the account was delinquent when he was interviewed by a security investigator. His credit reports reflected that the last activity on this account, with a balance of $20,237, was in February 2004. He has been making monthly payments of $220 by automatic debit from his checking account since January 2008. If he adheres to the monthly payment plan, his account will be rehabilitated and considered current after he makes the October 2008 payment.

$20,237

For Applicant

Student Loan Debt

Admitted

—

(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

Claimed

Other

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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