ISCR Case 08-05592.h1

Case Headnote

ISCR Case No. 08-05592.h1

grantedJul 27, 2009· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 41-year-old business manager for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties largely stemmed from providing substantial support to her twin sister and her family.

Specific allegations included a $682 telecommunications bill, which her sister created and is now repaying. A $4,804 credit card debt, initially difficult to trace, was later located, and the applicant is prepared to pay the final balance. A $990 cell phone collection was successfully disputed as fraudulent and closed with no balance owed. A $576 medical bill, previously unknown to the applicant, was paid in March 2009, with reimbursement pending from her insurance. Finally, a $14,437 credit card debt, used for personal expenses while supporting her sister, was settled for $3,000 and paid on March 4, 2009.

The applicant successfully mitigated these concerns by resolving or disputing most debts and demonstrating significant financial recovery. She has since taken control of her finances, established an emergency fund, and is current on all financial obligations, leading to the granting of her security clearance.

Why the Applicant Prevailed

The applicant successfully mitigated financial concerns by demonstrating that the majority of her debts were resolved or disputed.
She provided substantial financial support to her sister, which was a significant factor in her financial difficulties, but has since taken control of her finances.
The applicant has created an emergency fund and is current on her financial obligations, 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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions 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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
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 issuedJan 22, 2009
Answer filedMar 11, 2009Applicant denied two delinquent accounts were hers.
Hearing heldJul 27, 2009Hearing was rescheduled from April 30, 2009.
Decision dateNot specified

Cite For

Mitigation of Financial Concerns Under Guideline F
Impact of Familial Obligations on Financial Stability
Demonstration of Financial Responsibility Post-debt Resolution

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	Telecommunications bill ($682) – In repayment – Before Applicant reported this credit report entry as fraud, her twin sister disclosed to Applicant that she created the account for her own benefit. The sister returned the appliances related to the service and agreed to repay the balance personally. It is currently in repayment. $682	For Applicant	Utility or Phone 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.b	Credit card ($4,804) – Negotiating with creditor – This account was sold off and the current holder of the account could not be found despite the diligent efforts of Applicant and her attorney. Applicant is willing and able to pay any balance owed. After the hearing, the holder of the account was discovered. Applicant is now waiting for a final balance and is prepared to pay the balance immediately upon receipt. $4,804	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.c	Collection for cell phone ($990) – Successfully disputed – Never having had service with this company, Applicant disputed this credit report entry as a fraudulent entry. After an investigation, the collection agency determined the account was closed with no balance owed. $990	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	Medical bill ($576) – Paid – Applicant was previously unaware of this debt related to her final surgery. She had assumed her insurance company had previously paid this balance, but it had not. She paid off this account in March 2009 and is now awaiting reimbursement from her insurance company. $576	For Applicant	Medical Debt	Denied	—	(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	Credit card ($14,437) – Settled – This account was used by Applicant to cover her personal expenses when she was sending her sister money. It was compromised for a settlement balance of $3,000. It was paid on March 4, 2009. $14,437	For Applicant	Credit Card Debt	Denied	—	(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

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Telecommunications bill ($682) – In repayment – Before Applicant reported this credit report entry as fraud, her twin sister disclosed to Applicant that she created the account for her own benefit. The sister returned the appliances related to the service and agreed to repay the balance personally. It is currently in repayment.

$682

For Applicant

Utility or Phone 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.b

Credit card ($4,804) – Negotiating with creditor – This account was sold off and the current holder of the account could not be found despite the diligent efforts of Applicant and her attorney. Applicant is willing and able to pay any balance owed. After the hearing, the holder of the account was discovered. Applicant is now waiting for a final balance and is prepared to pay the balance immediately upon receipt.

$4,804

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.c

Collection for cell phone ($990) – Successfully disputed – Never having had service with this company, Applicant disputed this credit report entry as a fraudulent entry. After an investigation, the collection agency determined the account was closed with no balance owed.

$990

For Applicant

Unspecified Financial

Denied

—

1.d

Medical bill ($576) – Paid – Applicant was previously unaware of this debt related to her final surgery. She had assumed her insurance company had previously paid this balance, but it had not. She paid off this account in March 2009 and is now awaiting reimbursement from her insurance company.

$576

For Applicant

Medical Debt

Denied

—

(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

Credit card ($14,437) – Settled – This account was used by Applicant to cover her personal expenses when she was sending her sister money. It was compromised for a settlement balance of $3,000. It was paid on March 4, 2009.

$14,437

For Applicant

Credit Card Debt

Denied

—

(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

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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