ISCR Case 08-01291.h1

Case Headnote

ISCR Case No. 08-01291.h1

grantedFeb 24, 2009· Hon. Thomas M. Crean· hearing

Summary

This case involved a 29-year-old property book logistics specialist and former Army service member whose security clearance was initially questioned under Guideline F (Financial Considerations) due to multiple delinquent debts. The Statement of Reasons (SOR) detailed seven specific financial issues, including a $1,440 student loan in collection, a $520 charged-off account, a $765 charged-off credit card, a $6,016 charged-off credit card, a $1,416 charged-off department store account, a $943 credit card collection account, and a $14,135 charged-off bank loan. These allegations raised disqualifying conditions FC DC ¶ 19(a) and FC DC ¶ 19(c).

However, the applicant demonstrated substantial efforts to address these concerns. Six of the seven delinquent debts listed in the SOR were resolved through payment plans and full payments. This proactive approach highlighted a good-faith effort to repay overdue creditors.

Consequently, mitigating conditions FC MC ¶ 20(a), FC MC ¶ 20(c), and FC MC ¶ 20(d) were applied. The adjudicator determined that the applicant's current financial situation no longer cast doubt on his reliability or trustworthiness, leading to a GRANTED security clearance.

Why the Applicant Prevailed

The applicant resolved six of the seven delinquent debts listed in the SOR.
The applicant demonstrated a good-faith effort to repay overdue creditors.
The applicant's current financial situation does not cast doubt on his reliability or trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

FC MC ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
FC MC ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve Debts
FC MC ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Under Control

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedOct 8, 2008
Answer filedOct 28, 2008
Hearing heldFeb 4, 2009
Decision dateFeb 24, 2009

Cite For

Mitigating Circumstances for Financial Issues Under Guideline F
Good-faith Efforts to Resolve 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	an account in collection for student loans of $1,440 $1,440	For Applicant	Student Loan 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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full Claimed Debt Settlement
1.b	a charged off account for $520 $520	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.c	a charged off credit card account for $765 $765	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.d	a credit card account charged-off for $6,016 $6,016	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	a charged off department store account for $1,416 $1,416	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.f	a collection account on a credit card for a bank for $943 $943	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	a charged off bank loan for $14,135 $14,135	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Settlement

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

an account in collection for student loans of $1,440

$1,440

For Applicant

Student Loan 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

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

Documented

Debt Paid in Full

Claimed

Debt Settlement

1.b

a charged off account for $520

$520

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Debt Paid in Full

1.c

a charged off credit card account for $765

$765

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Debt Paid in Full

1.d

a credit card account charged-off for $6,016

$6,016

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.e

a charged off department store account for $1,416

$1,416

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Debt Paid in Full

1.f

a collection account on a credit card for a bank for $943

$943

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.g

a charged off bank loan for $14,135

$14,135

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Settlement

Loading case…

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

FORMAL FINDINGS

CONCLUSION