ISCR Case 08-12192.h1

Case Headnote

ISCR Case No. 08-12192.h1

grantedMar 25, 2010· Hon. Mary E. Henry· hearing

Summary

A 40-year-old security supervisor for a Department of Defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) listed approximately $35,670 in financial delinquencies, including various medical bills, loans, rent, utilities, and a judgment. Several debts were disputed by the applicant, with some subsequently removed from credit reports or found to be unknown to him.

The applicant demonstrated significant efforts to resolve these financial issues. He paid off 55% of the debts listed in the SOR, totaling $19,400, and established payment plans for others, making regular payments. Specific actions included paying off multiple medical debts, a car loan, and a judgment, while also negotiating with creditors and disputing inaccurate entries.

The judge found that the applicant acted responsibly under challenging circumstances, applying mitigating conditions such as the resolution of debts, establishment of payment plans, and demonstration of responsible financial management. These efforts, along with seeking debt counseling, led to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant resolved approximately 55% of the debts listed in the SOR, totaling $19,400.
He established payment plans for several debts and made regular payments.
The applicant demonstrated responsible financial management and sought debt counseling.

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 ControlThe applicant's financial issues stemmed from divorce, low income, and medical expenses.
AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant received debt counseling and learned to manage his finances.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant arranged payment plans and made payments on several debts.
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of DebtsThe applicant disputed several debts he did not recognize or for which he had valid reasons.

Key Rule Quoted

“The guidelines presume a nexus or rational connection between proven conduct under any of the criteria listed therein and an applicant’s security suitability.”
— ISCR Case No. 08-06605 at 3 (App. Bd. Feb. 4, 2010)

Procedural Posture

SOR issuedJul 28, 2009
Answer filedAug 26, 2009
Hearing heldFeb 23, 2010
Decision dateMar 25, 2010

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Demonstrating a Good-faith Effort to Resolve Debts
The Impact of Personal Circumstances on Financial Stability

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	Medical $ 46.00 Paid $46	For Applicant	Medical Debt	Admitted	—	—	—
1.b	Car loan $ 7,375.00 Payment plan; $50 a month $7,375	For Applicant	Auto Loan Debt	Denied	—	—	—
1.c	Loan $ 585.00 Disputes, unknown to him $585	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	Education loan $ 1,296.00 Payment plan; one payment $1,296	For Applicant	Student Loan Debt	Admitted	—	—	—
1.e	Rent $ 3,444.00 Same as 1.n; disputed, this debt removed by one credit reporting company $3,444	For Applicant	Unspecified Financial	Denied	—	—	—
1.f	Utility $ 1,188.00 Disputed $1,188	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.g	Loan $ 142.00 Paid $142	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Car Loan (Repossession) $10,230.00 Paid; Credit report shows a zero balance $10,230	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.i	Medical $ 682.00 Paid $682	For Applicant	Medical Debt	Admitted	—	—	—
1.j	Fees $ 1,666.00 Disputes balance, negotiating with creditor; paid $100 $1,666	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	Rent $ 1,180.00 Paid $1,180	For Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Rent $ 609.00 Disputed as Paid (no receipt) $609	For Applicant	Unspecified Financial	Denied	—	—	—
1.m	Medical $ 214.00 Paid $214	For Applicant	Medical Debt	Admitted	—	—	—
1.n	Rent $ 3,443.00 Same as 1.e; payment plan, $100 month, not verified $3,443	For Applicant	Unspecified Financial	Unknown	—	—	—
1.o	Medical $ 100.00 Paid, not verified $100	For Applicant	Medical Debt	Admitted	—	—	—
1.p	Medical $ 130.00 Paid $130	For Applicant	Medical Debt	Admitted	—	—	—
1.q	Medical $ 47.00 Paid $47	For Applicant	Medical Debt	Admitted	—	—	—
1.r	Cable $ 107.00 Paid $107	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.s	Judgment $ 3,077.00 Paid $3,077	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.t	Insurance $ 109.00 Disputed, never had insurance with this company $109	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Medical $ 46.00 Paid

$46

For Applicant

Medical Debt

Admitted

—

1.b

Car loan $ 7,375.00 Payment plan; $50 a month

$7,375

For Applicant

Auto Loan Debt

Denied

—

1.c

Loan $ 585.00 Disputes, unknown to him

$585

For Applicant

Unspecified Financial

Denied

—

1.d

Education loan $ 1,296.00 Payment plan; one payment

$1,296

For Applicant

Student Loan Debt

Admitted

—

1.e

Rent $ 3,444.00 Same as 1.n; disputed, this debt removed by one credit reporting company

$3,444

For Applicant

Unspecified Financial

Denied

—

1.f

Utility $ 1,188.00 Disputed

$1,188

For Applicant

Utility or Phone Debt

Denied

—

1.g

Loan $ 142.00 Paid

$142

For Applicant

Unspecified Financial

Admitted

—

1.h

Car Loan (Repossession) $10,230.00 Paid; Credit report shows a zero balance

$10,230

For Applicant

Auto Loan Debt

Admitted

—

1.i

Medical $ 682.00 Paid

$682

For Applicant

Medical Debt

Admitted

—

1.j

Fees $ 1,666.00 Disputes balance, negotiating with creditor; paid $100

$1,666

For Applicant

Unspecified Financial

Denied

—

1.k

Rent $ 1,180.00 Paid

$1,180

For Applicant

Unspecified Financial

Admitted

—

1.l

Rent $ 609.00 Disputed as Paid (no receipt)

$609

For Applicant

Unspecified Financial

Denied

—

1.m

Medical $ 214.00 Paid

$214

For Applicant

Medical Debt

Admitted

—

1.n

Rent $ 3,443.00 Same as 1.e; payment plan, $100 month, not verified

$3,443

For Applicant

Unspecified Financial

Unknown

—

1.o

Medical $ 100.00 Paid, not verified

$100

For Applicant

Medical Debt

Admitted

—

1.p

Medical $ 130.00 Paid

$130

For Applicant

Medical Debt

Admitted

—

1.q

Medical $ 47.00 Paid

$47

For Applicant

Medical Debt

Admitted

—

1.r

Cable $ 107.00 Paid

$107

For Applicant

Utility or Phone Debt

Admitted

—

1.s

Judgment $ 3,077.00 Paid

$3,077

For Applicant

Judgment Against Applicant

Admitted

—

1.t

Insurance $ 109.00 Disputed, never had insurance with this company

$109

For Applicant

Unspecified Financial

Denied

—

Loading case…

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