ISCR Case 08-11302.h1

Case Headnote

ISCR Case No. 08-11302.h1

grantedDec 31, 2009· Hon. Philip S. Howe· hearing

Summary

A 27-year-old defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations) related to delinquent debts totaling $19,979. The Statement of Reasons (SOR) detailed three credit card debts and one judgment. The applicant owed $10,360 on a credit card from college, which had accrued to $21,642.75 due to a 29% interest rate. She was making $100 monthly payments, with two payments made in August and September 2009, and a third planned for October 2009, with the expectation of negotiating a settlement after establishing a regular payment pattern.

Additionally, the applicant owed $3,951 on a second credit card, making $50 monthly payments, with three payments made in June, July, and August 2009. A third store credit card debt of $5,430 was also being paid at $100 monthly, with three payments made in June, July, and August 2009. All three credit card debts were being resolved through installment payment plans. The fourth allegation, a $238 judgment, was disproven by a letter from the creditor dated June 19, 2009, confirming the debt belonged to the applicant's father, not the applicant.

The decision to grant clearance was based on the applicant's demonstrated good-faith effort to repay her debts and significant lifestyle changes to manage her finances. Her financial difficulties were linked to her college years and were being addressed with structured repayment plans. Character references also supported her integrity and reliability. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, but mitigating conditions AG ¶ 20(a) and AG ¶ 20(d) were applied.

Why the Applicant Prevailed

The applicant admitted to some debts but provided evidence of a repayment plan and financial responsibility.
The applicant's financial difficulties were linked to her college years and have since been addressed with a structured repayment plan.
Character references highlighted the applicant's integrity and reliability, supporting her case for clearance.

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)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJun 9, 2009
Answer filedJun 22, 2009
Hearing heldSep 15, 2009
Decision dateDec 31, 2009

Cite For

Mitigating Conditions for Financial Considerations Under Guideline F
Importance of Character References in Security Clearance Cases
Whole-person Concept in Evaluating 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	Applicant owes $10,360 on a credit card she obtained while attending college. She graduated from college in 2005. She used it for purchases of food, books, and other necessities for which her scholarship did not pay. The creditor told Applicant recently that with the 29% interest rate on the card the amount owed is now $21,642.75. Applicant pays the creditor $100 monthly on the account. She has made two payments, in August and September 2009. She will make a third payment in October 2009. After establishing a regular payment pattern, the creditor will negotiate with her on a settlement amount. This debt is currently being resolved by an installment payment plan. $10,360	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full Documented Payment Plan with Creditor
1.b	Applicant also owes $3,951 on another credit card. She pays $50 monthly on that account. She has made three payments on this debt, in June, July, and August 2009. She continues to pay on this account. This debt is being resolved by an installment payment plan. $3,951	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	Applicant owes $5,430 on another store credit card. She pays this creditor $100 monthly on this debt. Applicant made three payments on this account, in June, July, and August 2009. This debt is being resolved by an installment payment plan. $5,430	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	The delinquent debt in SOR ¶ 1.d is for $238 owed to a creditor on a judgment. Applicant denied that this debt was owed by her. She submitted a letter from the creditor dated June 19, 2009, stating that the judgment debtor was Applicant’s father, not Applicant. Applicant has never owed this debt. $238	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant owes $10,360 on a credit card she obtained while attending college. She graduated from college in 2005. She used it for purchases of food, books, and other necessities for which her scholarship did not pay. The creditor told Applicant recently that with the 29% interest rate on the card the amount owed is now $21,642.75. Applicant pays the creditor $100 monthly on the account. She has made two payments, in August and September 2009. She will make a third payment in October 2009. After establishing a regular payment pattern, the creditor will negotiate with her on a settlement amount. This debt is currently being resolved by an installment payment plan.

$10,360

For Applicant

Credit Card Debt

Admitted

—

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

Claimed

Debt Paid in Full

Documented

Payment Plan with Creditor

1.b

Applicant also owes $3,951 on another credit card. She pays $50 monthly on that account. She has made three payments on this debt, in June, July, and August 2009. She continues to pay on this account. This debt is being resolved by an installment payment plan.

$3,951

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.c

Applicant owes $5,430 on another store credit card. She pays this creditor $100 monthly on this debt. Applicant made three payments on this account, in June, July, and August 2009. This debt is being resolved by an installment payment plan.

$5,430

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.d

The delinquent debt in SOR ¶ 1.d is for $238 owed to a creditor on a judgment. Applicant denied that this debt was owed by her. She submitted a letter from the creditor dated June 19, 2009, stating that the judgment debtor was Applicant’s father, not Applicant. Applicant has never owed this debt.

$238

For Applicant

Unspecified Financial

Denied

—

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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