ISCR Case 08-06774.h1

Case Headnote

ISCR Case No. 08-06774.h1

grantedSep 28, 2009· Hon. Rita C. O'Brien· hearing

Summary

A 47-year-old field engineer was granted a security clearance despite a history of financial difficulties, which were evaluated under Guideline F (Financial Considerations). The applicant incurred significant debts after relocating for employment, leading to allegations concerning multiple credit cards, finance loans, child support arrears, and an automobile loan.

The applicant demonstrated proactive efforts to address these obligations. He established payment plans for several credit card debts totaling $1,289, $671, and $271, with the latter two potentially being duplicates and consolidated with another creditor. He also set up payment plans for two finance loans, each initially offered a $5,000 settlement, and is making automatic monthly payments of $150 for each. Child support arrears of $38,824 are being paid through automatic $200 monthly deductions. An automobile loan of $23,475 was settled and paid in full for $4,695 in March 2009, and another credit card debt of $778 was paid in October 2008. A $584 credit card debt was included in a consolidation plan. Two smaller debts, a $210 secured loan and a $1,210 credit card, remain unpaid due to the applicant's inability to locate the creditors.

The judge found that the applicant acted responsibly, making good-faith efforts to repay creditors and resolve debts. The financial difficulties were largely attributed to circumstances beyond his control, such as job relocation and increased living expenses. The applicant maintained communication with creditors and established payment plans, leading to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
Financial difficulties were largely due to circumstances beyond the applicant's control, including a job relocation and increased living expenses.
The applicant maintained communication with creditors and established payment plans.

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 Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceiving Counseling or Indications That the Problem Is Being Resolved
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“A security clearance decision is intended only to resolve the question of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Egan, 484 U.S. at 531

Procedural Posture

SOR issuedMar 19, 2009
Answer filedApr 10, 2009signed and notarized
Hearing heldJul 23, 2009
Decision dateSep 28, 2009

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Impact of Circumstances Beyond Control on Financial Obligations
Good-faith Efforts in Addressing Financial Issues

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	Credit card - $1,289: Payment plan. Applicant had difficulty determining what company held this account. When he reached the correct agency, he established a plan of $50 per month and had made two payments as of the date of the hearing. $1,289	For Applicant	Credit Card 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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.b	Credit cards - $671: Payment plan. Applicant believes allegation 1.c. may be a duplicate of 1.b. In 2003 or 2004, he was able to consolidate several credit card balances, including 1.b., with the creditor listed in 1.e. $671	For Applicant	Credit Card 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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	Credit cards - $271: Payment plan. Applicant believes allegation 1.c. may be a duplicate of 1.b. $271	For Applicant	Credit Card 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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	Finance - $1,337: Payment plan. He was offered a settlement amount of $5,000 but was unable to make a lump-sum payment. He established a payment plan and provided evidence that he is making payments according to the plan at a rate of $150 per month, automatically deducted from his checking account. $1,337	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.e	Finance - $8,452: Payment plan. He was offered a settlement amount of $5,000 but was unable to make a lump-sum payment. He established a payment plan and provided evidence that he is making payments according to the plan at a rate of $150 per month, automatically deducted from his checking account. $8,452	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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	Documented Payment Plan with Creditor
1.f	Child support - $38,824: Automatic deduction. Applicant originally paid both child support and arrears. As of April 2007, Applicant owes only arrears. His monthly payments of $200 are deducted directly from his paycheck. $38,824	For Applicant	Child Support 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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	Automobile loan - $23,475: Paid. Applicant obtained a settlement offer from the creditor for $4,695. Applicant paid the amount in full in March 2009. $23,475	For Applicant	Auto Loan Debt	Admitted	—	—	Documented Debt Paid in Full
1.h	Secured loan - $210: Unpaid. This debt is a loan Applicant obtained when he operated a small computer business in city A. He is willing to pay the debt, but has been unable to locate the creditor. $210	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Disputed with Creditor
1.i	Credit cards - $778: Paid; Payment plan. Applicant provided documentation that he paid the debt alleged at 1.i. in October 2008. $778	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.j	Credit cards - $584: Paid; Payment plan. Allegation 1.j. is included in the consolidation plan discussed under allegation 1.b. $584	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.k	Credit card - $1,210: Unpaid. Applicant was paying on it timely when he lived in city A. He had trouble maintaining the payments after he moved to city B. Once he was financially able to resume payments, he could not locate the current holder of the account. $1,210	For Applicant	Credit Card 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	Claimed Debt Disputed with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Credit card - $1,289: Payment plan. Applicant had difficulty determining what company held this account. When he reached the correct agency, he established a plan of $50 per month and had made two payments as of the date of the hearing.

$1,289

For Applicant

Credit Card 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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.b

Credit cards - $671: Payment plan. Applicant believes allegation 1.c. may be a duplicate of 1.b. In 2003 or 2004, he was able to consolidate several credit card balances, including 1.b., with the creditor listed in 1.e.

$671

For Applicant

Credit Card 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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.c

Credit cards - $271: Payment plan. Applicant believes allegation 1.c. may be a duplicate of 1.b.

$271

For Applicant

Credit Card 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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.d

Finance - $1,337: Payment plan. He was offered a settlement amount of $5,000 but was unable to make a lump-sum payment. He established a payment plan and provided evidence that he is making payments according to the plan at a rate of $150 per month, automatically deducted from his checking account.

$1,337

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.e

Finance - $8,452: Payment plan. He was offered a settlement amount of $5,000 but was unable to make a lump-sum payment. He established a payment plan and provided evidence that he is making payments according to the plan at a rate of $150 per month, automatically deducted from his checking account.

$8,452

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(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

Documented

Payment Plan with Creditor

1.f

Child support - $38,824: Automatic deduction. Applicant originally paid both child support and arrears. As of April 2007, Applicant owes only arrears. His monthly payments of $200 are deducted directly from his paycheck.

$38,824

For Applicant

Child Support 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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.g

Automobile loan - $23,475: Paid. Applicant obtained a settlement offer from the creditor for $4,695. Applicant paid the amount in full in March 2009.

$23,475

For Applicant

Auto Loan Debt

Admitted

—

Documented

Debt Paid in Full

1.h

Secured loan - $210: Unpaid. This debt is a loan Applicant obtained when he operated a small computer business in city A. He is willing to pay the debt, but has been unable to locate the creditor.

$210

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Disputed with Creditor

1.i

Credit cards - $778: Paid; Payment plan. Applicant provided documentation that he paid the debt alleged at 1.i. in October 2008.

$778

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.j

Credit cards - $584: Paid; Payment plan. Allegation 1.j. is included in the consolidation plan discussed under allegation 1.b.

$584

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.k

Credit card - $1,210: Unpaid. Applicant was paying on it timely when he lived in city A. He had trouble maintaining the payments after he moved to city B. Once he was financially able to resume payments, he could not locate the current holder of the account.

$1,210

For Applicant

Credit Card 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

Claimed

Debt Disputed with Creditor

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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 ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES