ISCR Case 08-08263.h1

Case Headnote

ISCR Case No. 08-08263.h1

grantedAug 21, 2009· Hon. Matthew E. Malone· hearing

Summary

A 31-year-old single mother and former U.S. Army service member was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 20 delinquent financial obligations totaling approximately $50,107. However, the judge found that her proactive efforts and current financial stability mitigated these concerns.

Many of the alleged debts were either not the applicant's responsibility or had been resolved. For instance, several debts were deleted from her credit history, some were linked to her ex-husband, and others were disputed as inaccurate or already paid. Specific debts included unpaid rent from an early lease termination, a car financed with her ex-husband, a co-signed lease for her mother with a pending settlement offer, and a voluntarily repossessed car for which she was negotiating a repayment plan. Other debts involved a defunct mobile carrier, a paid tuition account, and medical bills, some of which were being arranged for payment.

The decision to grant the clearance was based on the applicant's demonstrated efforts to resolve her financial obligations, including disputing inaccuracies and seeking financial counseling. Her actual liability was significantly reduced due to many debts not being her responsibility or having been resolved. Furthermore, her current financial situation was stable, characterized by a positive cash flow and reduced expenses.

Why the Applicant Prevailed

The applicant demonstrated proactive efforts to resolve her financial obligations, including disputing inaccuracies and seeking financial counseling.
Many debts attributed to the applicant were either not her responsibility or have been resolved, reducing her actual liability significantly.
The applicant's current financial situation is stable, with a positive cash flow and reduced expenses.

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 Financial Problem 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

“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedFeb 20, 2009
Answer filed—
Hearing heldJun 10, 2009
Decision dateAug 21, 2009

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Proactive Measures in Resolving Financial Obligations
Impact of Personal Circumstances on Financial Responsibility

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	This is a debt for unpaid rent after Applicant broke her lease early to keep her ex-husband from finding her. Applicant insists she owes only about $1,400. $4,909	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	Claimed Debt Paid in Full
1.b	This debt is for a car financed in both her and her ex-husband’s names. The car remained with him overseas when the marriage ended and she has no information about what happened to it. $7,642	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	Claimed Debt Disputed with Creditor
1.c	These debts have been deleted from her credit history.	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	These debts have been deleted from her credit history.	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	This debt is for unpaid rent. Applicant co-signed a lease for her mother in 2007. However, her mother became unable to work and defaulted on the lease when she moved out. Applicant has a settlement offer pending with the collection agency handling the account. $6,010	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	Claimed Debt Disputed with Creditor
1.f	Applicant has never had an account with this creditor and the debt has been removed from her credit history. $825	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	This is a debt for unpaid tuition for on-line college courses Applicant took while assigned overseas. The account was paid through Applicant’s GI Bill benefits. The debt has been removed from her credit history.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant had an account with this creditor, but she asserts it was paid. She has disputed the validity of this debt, which the creditor is not actively collecting, and it has been deleted from her credit history. $242	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	This is a collection account for a now-defunct mobile phone carrier. Applicant brought her account current in 2007. Because the company no longer exists, she has been unable to have the account deleted from her credit history. $1,021	For Applicant	Unspecified Financial	Denied	—	—	—
1.j	These debts have been removed from her credit history.	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	These debts have been removed from her credit history.	For Applicant	Unspecified Financial	Denied	—	—	—
1.l	This is the remainder after resale of a car Applicant had voluntarily repossessed. In 2006, she financed at a high interest rate the purchase of a used car for $16,000. After about a year, she realized she would not be able to pay the note as agreed. She has been negotiating with the creditor to establish a repayment plan for a lesser amount in satisfaction of the loan. $9,130	For Applicant	Auto 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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.m	This debt is for furniture she and her ex-husband financed. He retained the furniture at their overseas assignment when they separated. She does not know what happened to the furniture. Nonetheless, she has been trying to negotiate a settlement with this creditor. $3,049	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	Claimed Debt Disputed with Creditor
1.n	Applicant never failed to pay rent while living in the apartment complex in question. She completed the full term of the lease before vacating the apartment. The clerk’s office at the courthouse where this judgment was entered now says there is no record of any judgment against Applicant. This debt has been removed from her credit report. $756	For Applicant	Judgment Against Applicant	Denied	—	—	—
1.o	Applicant has been unable to find out what this debt is for and has received no information confirming the debt is hers. $110	For Applicant	Unspecified Financial	Denied	—	—	—
1.p	This is a loan her ex-husband obtained using both their names. It has been paid. It has been deleted from her credit history. $7,022	For Applicant	Personal Loan Debt	Admitted	—	—	—
1.q	This is a collection account for a medical debt; however, even during two brief periods of unemployment after she left the Army, Applicant has had medical insurance. This debt has been removed from her credit history. $447	For Applicant	Medical Debt	Denied	—	—	—
1.r	This is another loan her ex-husband obtained using both their names. Applicant does not know if this debt has been paid. It has been deleted from her credit history. $3,305	For Applicant	Personal Loan Debt	Denied	—	—	—
1.s	Applicant does not remember what this debt was for. It has been removed from her credit history. $170	For Applicant	Unspecified Financial	Denied	—	—	—
1.t	This is an unpaid medical bill for treatment she received at a hospital in the state where she was living before she took her current job. Applicant has made arrangements to pay this debt. $642	For Applicant	Medical 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	Claimed Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a debt for unpaid rent after Applicant broke her lease early to keep her ex-husband from finding her. Applicant insists she owes only about $1,400.

$4,909

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

Claimed

Debt Paid in Full

1.b

This debt is for a car financed in both her and her ex-husband’s names. The car remained with him overseas when the marriage ended and she has no information about what happened to it.

$7,642

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

Claimed

Debt Disputed with Creditor

1.c

These debts have been deleted from her credit history.

For Applicant

Unspecified Financial

Denied

—

1.d

These debts have been deleted from her credit history.

For Applicant

Unspecified Financial

Denied

—

1.e

This debt is for unpaid rent. Applicant co-signed a lease for her mother in 2007. However, her mother became unable to work and defaulted on the lease when she moved out. Applicant has a settlement offer pending with the collection agency handling the account.

$6,010

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

Claimed

Debt Disputed with Creditor

1.f

Applicant has never had an account with this creditor and the debt has been removed from her credit history.

$825

For Applicant

Unspecified Financial

Denied

—

1.g

This is a debt for unpaid tuition for on-line college courses Applicant took while assigned overseas. The account was paid through Applicant’s GI Bill benefits. The debt has been removed from her credit history.

For Applicant

Unspecified Financial

Admitted

—

1.h

Applicant had an account with this creditor, but she asserts it was paid. She has disputed the validity of this debt, which the creditor is not actively collecting, and it has been deleted from her credit history.

$242

For Applicant

Unspecified Financial

Denied

—

1.i

This is a collection account for a now-defunct mobile phone carrier. Applicant brought her account current in 2007. Because the company no longer exists, she has been unable to have the account deleted from her credit history.

$1,021

For Applicant

Unspecified Financial

Denied

—

1.j

These debts have been removed from her credit history.

For Applicant

Unspecified Financial

Denied

—

1.k

These debts have been removed from her credit history.

For Applicant

Unspecified Financial

Denied

—

1.l

This is the remainder after resale of a car Applicant had voluntarily repossessed. In 2006, she financed at a high interest rate the purchase of a used car for $16,000. After about a year, she realized she would not be able to pay the note as agreed. She has been negotiating with the creditor to establish a repayment plan for a lesser amount in satisfaction of the loan.

$9,130

For Applicant

Auto 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

(c) received/receiving counseling; problem being resolved

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

Claimed

Payment Plan with Creditor

1.m

This debt is for furniture she and her ex-husband financed. He retained the furniture at their overseas assignment when they separated. She does not know what happened to the furniture. Nonetheless, she has been trying to negotiate a settlement with this creditor.

$3,049

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

Claimed

Debt Disputed with Creditor

1.n

Applicant never failed to pay rent while living in the apartment complex in question. She completed the full term of the lease before vacating the apartment. The clerk’s office at the courthouse where this judgment was entered now says there is no record of any judgment against Applicant. This debt has been removed from her credit report.

$756

For Applicant

Judgment Against Applicant

Denied

—

1.o

Applicant has been unable to find out what this debt is for and has received no information confirming the debt is hers.

$110

For Applicant

Unspecified Financial

Denied

—

1.p

This is a loan her ex-husband obtained using both their names. It has been paid. It has been deleted from her credit history.

$7,022

For Applicant

Personal Loan Debt

Admitted

—

1.q

This is a collection account for a medical debt; however, even during two brief periods of unemployment after she left the Army, Applicant has had medical insurance. This debt has been removed from her credit history.

$447

For Applicant

Medical Debt

Denied

—

1.r

This is another loan her ex-husband obtained using both their names. Applicant does not know if this debt has been paid. It has been deleted from her credit history.

$3,305

For Applicant

Personal Loan Debt

Denied

—

1.s

Applicant does not remember what this debt was for. It has been removed from her credit history.

$170

For Applicant

Unspecified Financial

Denied

—

1.t

This is an unpaid medical bill for treatment she received at a hospital in the state where she was living before she took her current job. Applicant has made arrangements to pay this debt.

$642

For Applicant

Medical 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

Claimed

Payment Plan 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 CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES