ISCR Case 07-15967.h1

Case Headnote

ISCR Case No. 07-15967.h1

grantedJul 1, 2007· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 63-year-old security guard was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) regarding alleged delinquent debts. The judge determined that many of the applicant's financial difficulties stemmed from circumstances beyond her control, including identity confusion with her daughter and her responsibilities as a caregiver.

Specific allegations included multiple medical bills awaiting liability verification, several disputed cell phone bills, an unrecognized collection account, and a credit balance for which payment evidence was lacking. However, the applicant demonstrated a commitment to resolving her financial issues. She entered into a repayment plan for a $16,025 student loan for her daughter, settled a $4,905 creditor account for $2,800, and established a repayment plan for a $1,391 apartment lease balance.

The decision to grant the clearance was based on the applicant's meaningful track record of debt resolution, often with the assistance of her daughter, a finance professional. Her proactive engagement in repayment plans and debt settlements, coupled with the mitigating circumstances of identity confusion and caregiving responsibilities, demonstrated responsible financial behavior.

Why the Applicant Prevailed

The applicant demonstrated a meaningful track record of debt resolution with the help of her daughter.
The applicant's financial difficulties were largely due to circumstances beyond her control, including identity confusion with her daughter.
The applicant entered into repayment plans and settled significant debts, showing responsible financial behavior.

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 Behavior Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedMar 12, 2008
Answer filedJun 17, 2008Notarized response denying allegations.
Hearing heldAug 14, 2008Hearing conducted as scheduled.
Decision dateSep 8, 2008Record closed with no additional documents.

Cite For

Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
Importance of Financial Counseling in Debt Resolution
Demonstrating a Track Record of Debt Repayment as a Mitigating Factor

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	Medical Account Balance ($537 and $30) – Addressed/In Processing – These medical bills were submitted to Applicant’s medical provider, which apparently declined to cover them. She is awaiting verification that she is liable for them. $537	For Applicant	Medical Debt	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.b	Medical Account Balance ($30) – Addressed/In Processing – These medical bills were submitted to Applicant’s medical provider, which apparently declined to cover them. She is awaiting verification that she is liable for them. $30	For Applicant	Medical Debt	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.c	Cell Phone Bill ($492) – Unaddressed – Applicant’s daughter lost this phone in an amusement park. She states that she immediately reported the lost phone, but that it was not disabled. She claims subsequent calls on the phone were wrongfully billed to her mother, the Applicant. $492	For Applicant	Unspecified Financial	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.d	Credit Balance ($57) – Unaddressed – Applicant stated this account was paid, but failed to provide evidence of payment. $57	For Applicant	Unspecified Financial	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.e	Cell Phone Bill ($492) – Unaddressed – Applicant’s daughter lost this phone in an amusement park. She states that she immediately reported the lost phone, but that it was not disabled. She claims subsequent calls on the phone were wrongfully billed to her mother, the Applicant. $492	For Applicant	Unspecified Financial	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.f	Collection Account ($643) – Unaddressed – Applicant does not recognize this account entry. She believes it is an error on her credit report, but there is no documentation that this has been disputed with either the company or any of the credit reporting bureaus. $643	For Applicant	Unspecified Financial	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.g	Telecommunications ($118) – Unaddressed – Applicant’s daughter claims this is one of her telephone accounts. Applicant denies that it is her account. Applicant stated the account was disputed, but provided no evidence of dispute. $118	For Applicant	Unspecified Financial	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.h	Student Loan ($16,025) – In repayment – Applicant requested and received a repayment plan to pay off her daughter’s educational loan. The terms call for payments of approximately $215 per month. $16,025	For Applicant	Student Loan Debt	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.i	Creditor ($4,905) – Paid – Applicant settled for a pay off of this account for $2,800. That amount was tendered and the account is now satisfied. $4,905	For Applicant	Unspecified Financial	Denied	—	—	—
1.j	Phone Bill ($160) – Unaddressed – Applicant believes this is a repeat of the cell phone bill noted in ¶ 1.c and ¶ 1.e), above. It does not, however, have the same account number or date for the opening of the account as any of the above telecommunications or phone services. Again, Applicant’s daughter believes the cell phone bills are hers and on her mother’s credit report in error. $160	For Applicant	Unspecified Financial	Denied	(c) a history of not meeting financial obligations (a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.k	Apartment Lease Balance ($1,391) – In repayment – This is the apartment which was sublet to Applicant’s niece. Applicant demonstrated she has a promissory note to repay the balance that shows payments have been made. $1,391	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Medical Account Balance ($537 and $30) – Addressed/In Processing – These medical bills were submitted to Applicant’s medical provider, which apparently declined to cover them. She is awaiting verification that she is liable for them.

$537

For Applicant

Medical Debt

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.b

Medical Account Balance ($30) – Addressed/In Processing – These medical bills were submitted to Applicant’s medical provider, which apparently declined to cover them. She is awaiting verification that she is liable for them.

$30

For Applicant

Medical Debt

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.c

Cell Phone Bill ($492) – Unaddressed – Applicant’s daughter lost this phone in an amusement park. She states that she immediately reported the lost phone, but that it was not disabled. She claims subsequent calls on the phone were wrongfully billed to her mother, the Applicant.

$492

For Applicant

Unspecified Financial

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.d

Credit Balance ($57) – Unaddressed – Applicant stated this account was paid, but failed to provide evidence of payment.

$57

For Applicant

Unspecified Financial

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.e

$492

For Applicant

Unspecified Financial

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.f

Collection Account ($643) – Unaddressed – Applicant does not recognize this account entry. She believes it is an error on her credit report, but there is no documentation that this has been disputed with either the company or any of the credit reporting bureaus.

$643

For Applicant

Unspecified Financial

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.g

Telecommunications ($118) – Unaddressed – Applicant’s daughter claims this is one of her telephone accounts. Applicant denies that it is her account. Applicant stated the account was disputed, but provided no evidence of dispute.

$118

For Applicant

Unspecified Financial

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.h

Student Loan ($16,025) – In repayment – Applicant requested and received a repayment plan to pay off her daughter’s educational loan. The terms call for payments of approximately $215 per month.

$16,025

For Applicant

Student Loan Debt

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.i

Creditor ($4,905) – Paid – Applicant settled for a pay off of this account for $2,800. That amount was tendered and the account is now satisfied.

$4,905

For Applicant

Unspecified Financial

Denied

—

1.j

Phone Bill ($160) – Unaddressed – Applicant believes this is a repeat of the cell phone bill noted in ¶ 1.c and ¶ 1.e), above. It does not, however, have the same account number or date for the opening of the account as any of the above telecommunications or phone services. Again, Applicant’s daughter believes the cell phone bills are hers and on her mother’s credit report in error.

$160

For Applicant

Unspecified Financial

Denied

(c) a history of not meeting financial obligations

(a) inability to satisfy debts

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

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

(c) received/receiving counseling; problem being resolved

—

1.k

Apartment Lease Balance ($1,391) – In repayment – This is the apartment which was sublet to Applicant’s niece. Applicant demonstrated she has a promissory note to repay the balance that shows payments have been made.

$1,391

For Applicant

Unspecified Financial

Denied

—

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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