ISCR Case 08-05003.h1

Case Headnote

ISCR Case No. 08-05003.h1

deniedNov 30, 2009· Hon. Wilford H. Ross· hearing

Summary

A 48-year-old retired Army veteran was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts totaling over $21,000. The Statement of Reasons detailed multiple outstanding obligations, including a $221 telephone bill from 2003, a $386 cable bill from 2004, and a $213 government debt from 2004.

Further debts included $7,621 for a repossessed automobile, $1,289 and $1,854 in other delinquent debts from 2005, and $6,756 for a second repossessed vehicle. A $309 medical debt from 2006, a $142 telephone bill from 2007, and a $2,599 debt from 2008 were also cited. Several allegations were found for the applicant due to insufficient proof or lack of contact information.

The judge determined that the applicant failed to demonstrate a good-faith effort to resolve his financial issues, noting that his difficulties were recent and uncontrolled. This situation was deemed a risk to national security, leading to the denial of his security clearance application.

Why the Applicant Was Denied

The applicant has over $21,000 in past due debts, which he has not made efforts to pay.
The applicant failed to provide evidence of a good-faith effort to resolve his financial issues.
The applicant's financial difficulties are recent and not under control, raising concerns about his 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(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties are recent and ongoing.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of circumstances beyond his control.
AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant's debts are not under control.
AG ¶ 20(d)rejectedGood-faith Effort to Pay Off CreditorsThe applicant has not initiated a good-faith effort to pay off his creditors.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedApr 9, 2009
Answer filedApr 24, 2009
Hearing held—Decision made without a hearing.
Decision dateNov 30, 2009

Cite For

Financial Overextension as a Disqualifying Condition Under Guideline F
Lack of Good-faith Effort to Resolve Debts as a Basis for Denial
Recent Financial Difficulties Impacting Security Clearance Eligibility

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 Applicant admits that he is indebted to a creditor for a delinquent telephone bill in the amount of $221 since January 2003. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $221	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.b	The Applicant denies that he is indebted to a creditor for a delinquent cable bill in the amount of $386 since June 2004. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in process of paying this debt.” (Item 6 at 4.) Contact information for this creditor is found in Item 8 at page 5. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $386	Against Applicant	Unspecified Financial	Denied	—	—	—
1.c	The Applicant denies that he is indebted to a creditor for a delinquent government debt in the amount of $213 since November 2004. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I have attempted to get in contact with this company to set up a payment plan. Unable to reach company.” (Item 6 at 8.) Contact information for this creditor is found in Item 8 at page 10. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $213	Against Applicant	Unspecified Financial	Denied	—	—	—
1.d	The Applicant admits that he is indebted to a finance agency in the amount of $7,621 for a repossessed automobile. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $7,621	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.e	The Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $1,289 since April 2005. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18-19.) He stated on September 19, 2008, “I am trying to contact company. Do not know who this bill goes to, but I am attempting to reach them to set up a payment plan.” (Item 6 at 6.) Contact information for this creditor is found in Item 8 at page 12. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $1,289	Against Applicant	Unspecified Financial	Denied	—	—	—
1.f	The Applicant denies that he is indebted to a bank for a delinquent debt in the amount of $1,854 since April 2005. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in the process of paying them but have not been able to get in touch with them yet. No contact with . . . Bank yet.” (Item 6 at 3-4.) Contact information for this creditor is found in Item 8 at page 4. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $1,854	Against Applicant	Unspecified Financial	Denied	—	—	—
1.g	The Applicant admits that he is indebted to a second finance agency in the amount of $6,756 for a second repossessed automobile. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $6,756	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.h	The Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $381 since February 2006. This debt is found in the credit report dated September 23, 2008. (Item 7 at 2.) However, no contact information is given for this creditor, and there is no evidence that the Applicant was ever asked about this debt. I find that this debt is not proven and this subparagraph is found for the Applicant. $381	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	The Applicant denies that he is indebted to a collection agency for a delinquent medical debt in the amount of $309 since April 2006. (Item 7 at 1.) The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in the process of setting up a payment plan. Have not gotten anything from this company.” (Item 6 at 5-6.) Contact information for a predecessor creditor is found in Item 8 at page 7. Based on the totality of the evidence, I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $309	Against Applicant	Medical Debt	Denied	—	—	—
1.j	The Applicant denies that he is indebted to a collection agency for a second delinquent medical debt in the amount of $309 since April 2006. (Item 7 at 1.) The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in the process of setting up a payment plan. Have not gotten anything from this company.” (Item 6 at 5-6.) Contact information for a predecessor creditor is found in Item 8 at page 7. Based on the totality of the evidence, I find that there is insufficient evidence to prove that this debt is not a repeat of 1.i. This allegation is unproven, and is found for the Applicant. $309	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	The Applicant admits that he is indebted to a creditor for a delinquent telephone bill in the amount of $142 since September 2007. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $142	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.l	The Applicant denies that he is indebted to a creditor for a delinquent debt owed to a utility company in the amount of $342 since February 2008. This debt is found in the credit report dated September 23, 2008. (Item 7 at 2.) However, no contact information is given for this creditor, and there is no evidence that the Applicant was ever asked about this debt. I find that this debt is not proven and this subparagraph is found for the Applicant. $342	For Applicant	Unspecified Financial	Denied	—	—	—
1.m	The Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,599 since May 2008. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $2,599	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant admits that he is indebted to a creditor for a delinquent telephone bill in the amount of $221 since January 2003. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$221

Against Applicant

Utility or Phone Debt

Admitted

—

1.b

The Applicant denies that he is indebted to a creditor for a delinquent cable bill in the amount of $386 since June 2004. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in process of paying this debt.” (Item 6 at 4.) Contact information for this creditor is found in Item 8 at page 5. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$386

Against Applicant

Unspecified Financial

Denied

—

1.c

The Applicant denies that he is indebted to a creditor for a delinquent government debt in the amount of $213 since November 2004. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I have attempted to get in contact with this company to set up a payment plan. Unable to reach company.” (Item 6 at 8.) Contact information for this creditor is found in Item 8 at page 10. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$213

Against Applicant

Unspecified Financial

Denied

—

1.d

The Applicant admits that he is indebted to a finance agency in the amount of $7,621 for a repossessed automobile. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$7,621

Against Applicant

Auto Loan Debt

Admitted

—

1.e

The Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $1,289 since April 2005. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18-19.) He stated on September 19, 2008, “I am trying to contact company. Do not know who this bill goes to, but I am attempting to reach them to set up a payment plan.” (Item 6 at 6.) Contact information for this creditor is found in Item 8 at page 12. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$1,289

Against Applicant

Unspecified Financial

Denied

—

1.f

The Applicant denies that he is indebted to a bank for a delinquent debt in the amount of $1,854 since April 2005. The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in the process of paying them but have not been able to get in touch with them yet. No contact with . . . Bank yet.” (Item 6 at 3-4.) Contact information for this creditor is found in Item 8 at page 4. I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$1,854

Against Applicant

Unspecified Financial

Denied

—

1.g

The Applicant admits that he is indebted to a second finance agency in the amount of $6,756 for a second repossessed automobile. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$6,756

Against Applicant

Auto Loan Debt

Admitted

—

1.h

The Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $381 since February 2006. This debt is found in the credit report dated September 23, 2008. (Item 7 at 2.) However, no contact information is given for this creditor, and there is no evidence that the Applicant was ever asked about this debt. I find that this debt is not proven and this subparagraph is found for the Applicant.

$381

For Applicant

Unspecified Financial

Denied

—

1.i

The Applicant denies that he is indebted to a collection agency for a delinquent medical debt in the amount of $309 since April 2006. (Item 7 at 1.) The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in the process of setting up a payment plan. Have not gotten anything from this company.” (Item 6 at 5-6.) Contact information for a predecessor creditor is found in Item 8 at page 7. Based on the totality of the evidence, I find that this is the Applicant’s debt, that he has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$309

Against Applicant

Medical Debt

Denied

—

1.j

The Applicant denies that he is indebted to a collection agency for a second delinquent medical debt in the amount of $309 since April 2006. (Item 7 at 1.) The Applicant has known about this debt since February 2008, when he was questioned about it. (Item 6 at 18.) He stated on September 19, 2008, “I am in the process of setting up a payment plan. Have not gotten anything from this company.” (Item 6 at 5-6.) Contact information for a predecessor creditor is found in Item 8 at page 7. Based on the totality of the evidence, I find that there is insufficient evidence to prove that this debt is not a repeat of 1.i. This allegation is unproven, and is found for the Applicant.

$309

For Applicant

Unspecified Financial

Denied

—

1.k

The Applicant admits that he is indebted to a creditor for a delinquent telephone bill in the amount of $142 since September 2007. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$142

Against Applicant

Utility or Phone Debt

Admitted

—

1.l

The Applicant denies that he is indebted to a creditor for a delinquent debt owed to a utility company in the amount of $342 since February 2008. This debt is found in the credit report dated September 23, 2008. (Item 7 at 2.) However, no contact information is given for this creditor, and there is no evidence that the Applicant was ever asked about this debt. I find that this debt is not proven and this subparagraph is found for the Applicant.

$342

For Applicant

Unspecified Financial

Denied

—

1.m

The Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,599 since May 2008. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$2,599

Against Applicant

Unspecified Financial

Admitted

—

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Case Profile

Summary

Why the Applicant Was Denied

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