ISCR Case 08-08743.h1

Case Headnote

ISCR Case No. 08-08743.h1

deniedJul 1, 2008· Hon. Edward W. Loughran· hearing

Summary

A 30-year-old defense contractor and U.S. Army veteran was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant faced 27 delinquent debts totaling over $22,000. While some debts were admitted, others were denied or unknown to the applicant, including several attributed to collection agencies for cellular, cable, and utility services, as well as medical expenses and an apartment landlord.

Specific debts included $135, $370, $686, $5,376, $167, and $109 that the applicant admitted owing. Other significant allegations included a $3,810 debt for a cellular company, a $405 debt for a cable provider, a $521 debt for a cellular company, and a $15,295 deficiency from a voluntarily repossessed car loan. One $72 utility debt was paid, and a $286 debt to the U.S. Government was resolved via tax refund seizure.

The judge acknowledged that family members' actions during the applicant's military deployment exacerbated some financial problems, including a $66 returned check believed to be written by his brother. However, the applicant was found to have failed to take responsible actions to mitigate these debts, leading to the denial of his clearance due to ongoing and insufficiently mitigated financial issues.

Why the Applicant Was Denied

The applicant has unresolved delinquent debts totaling over $22,000.
The applicant did not take responsible actions to address debts incurred by family members during his deployment.
The applicant's financial issues are ongoing and have not been sufficiently mitigated.

Conditions Referenced

Disqualifying

F.19(a)raisedInability or Unwillingness to Satisfy Debts
F.19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant attributed some debts to actions by family members.
F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant received some credit counseling from a credit resolution company.
F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe payments made appear to be a reaction to the security clearance impact rather than a sincere acceptance of financial responsibilities.
F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe credit resolution company attempted to remove derogatory items from the applicant's credit report.

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 issuedDec 16, 2008
Answer filedUndated
Hearing heldMar 18, 2009
Decision dateApr 22, 2009

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Family Actions on Financial Responsibility Under Guideline F
Mitigation Considerations Related to Financial Counseling and Disputes Over Debts

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	Applicant admitted to owing the delinquent debt of $135 to a collection company, as alleged in SOR ¶ 1.a. $135	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant denied SOR ¶ 1.b, which alleges a $229 debt to the same collection agency as that listed in ¶ 1.a. $229	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant denied owing the delinquent debt of $3,810 to a collection company on behalf of a cellular telephone company, as alleged in SOR ¶ 1.c. $3,810	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	SOR ¶ 1.d alleges a debt of $239 to a collection company. Applicant denied any knowledge of this debt. $239	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant denied any knowledge of the $927 debt to a collection company, as alleged in SOR ¶ 1.e. $927	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant paid the $72 debt to a utility company, as alleged in SOR ¶ 1.f. $72	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.g	Applicant admitted to owing the $370 delinquent debt alleged in SOR ¶ 1.g. $370	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant denied owing a debt of $156 to the same utility company, as alleged in SOR ¶ 1.h. $156	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	SOR ¶ 1.i alleges a debt of $66 for a returned check. Applicant stated that he believed his brother may have written this check while he was deployed. $66	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	A debt of $405 to a collection company, on behalf of a cable television provider is alleged in SOR ¶ 1.k. $405	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant denied owing the $412 debt to an apartment landlord, as alleged in SOR ¶ 1.l. $412	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Applicant admitted to owing the $686 delinquent debt to a collection company on behalf of a cellular telephone services company, as alleged in SOR ¶ 1.m. $686	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	Applicant denied any knowledge of the $91 debt alleged in SOR ¶ 1.n, or the $1,250 debt alleged in SOR ¶ 1.o. $1,250	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	Applicant admitted to owing the $5,376 delinquent debt to a company that provides loans to military members, as alleged in SOR ¶ 1.p. $5,376	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	SOR ¶ 1.q alleges a $521 debt to a collection company. The original debt was to a cellular telephone services company. $521	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	Applicant denied owing the three medical debts totaling $333, as alleged in SOR ¶¶ 1.r through 1.t. $333	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	SOR ¶ 1.v alleges a $15,295 debt for the deficiency owed on a car loan after Applicant’s car was voluntarily repossessed. $15,295	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.r	Applicant admitted to owing the $167 delinquent debt to a collection company on behalf of a utility company, as alleged in SOR ¶ 1.w. $167	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.s	Applicant denied any knowledge of the $510 debt alleged in SOR ¶ 1.x. $510	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.t	In his response to the SOR, Applicant admitted to owing the $109 medical debt alleged in SOR ¶ 1.z. $109	For Applicant	Medical Debt	Admitted	—	—	—
1.u	SOR ¶ 1.aa alleges a $286 debt to the U.S. Government. That debt was paid by a seizure of Applicant’s federal income tax refund. $286	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted to owing the delinquent debt of $135 to a collection company, as alleged in SOR ¶ 1.a.

$135

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant denied SOR ¶ 1.b, which alleges a $229 debt to the same collection agency as that listed in ¶ 1.a.

$229

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant denied owing the delinquent debt of $3,810 to a collection company on behalf of a cellular telephone company, as alleged in SOR ¶ 1.c.

$3,810

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

SOR ¶ 1.d alleges a debt of $239 to a collection company. Applicant denied any knowledge of this debt.

$239

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant denied any knowledge of the $927 debt to a collection company, as alleged in SOR ¶ 1.e.

$927

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant paid the $72 debt to a utility company, as alleged in SOR ¶ 1.f.

$72

For Applicant

Utility or Phone Debt

Admitted

—

1.g

Applicant admitted to owing the $370 delinquent debt alleged in SOR ¶ 1.g.

$370

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant denied owing a debt of $156 to the same utility company, as alleged in SOR ¶ 1.h.

$156

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

SOR ¶ 1.i alleges a debt of $66 for a returned check. Applicant stated that he believed his brother may have written this check while he was deployed.

$66

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

A debt of $405 to a collection company, on behalf of a cable television provider is alleged in SOR ¶ 1.k.

$405

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Applicant denied owing the $412 debt to an apartment landlord, as alleged in SOR ¶ 1.l.

$412

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

Applicant admitted to owing the $686 delinquent debt to a collection company on behalf of a cellular telephone services company, as alleged in SOR ¶ 1.m.

$686

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

Applicant denied any knowledge of the $91 debt alleged in SOR ¶ 1.n, or the $1,250 debt alleged in SOR ¶ 1.o.

$1,250

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

Applicant admitted to owing the $5,376 delinquent debt to a company that provides loans to military members, as alleged in SOR ¶ 1.p.

$5,376

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

SOR ¶ 1.q alleges a $521 debt to a collection company. The original debt was to a cellular telephone services company.

$521

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

Applicant denied owing the three medical debts totaling $333, as alleged in SOR ¶¶ 1.r through 1.t.

$333

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

SOR ¶ 1.v alleges a $15,295 debt for the deficiency owed on a car loan after Applicant’s car was voluntarily repossessed.

$15,295

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.r

Applicant admitted to owing the $167 delinquent debt to a collection company on behalf of a utility company, as alleged in SOR ¶ 1.w.

$167

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.s

Applicant denied any knowledge of the $510 debt alleged in SOR ¶ 1.x.

$510

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.t

In his response to the SOR, Applicant admitted to owing the $109 medical debt alleged in SOR ¶ 1.z.

$109

For Applicant

Medical Debt

Admitted

—

1.u

SOR ¶ 1.aa alleges a $286 debt to the U.S. Government. That debt was paid by a seizure of Applicant’s federal income tax refund.

$286

For 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

FOOTNOTES