ISCR Case 09-00173.h1

Case Headnote

ISCR Case No. 09-00173.h1

deniedJul 1, 2009· Hon. Carol G. Ricciardello· hearing

Summary

A 41-year-old truck driver was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant unpaid debts totaling approximately $45,000. The applicant faced numerous allegations regarding delinquent accounts, including a $15,426 vehicle loan from a repossessed car, a $3,442 credit card debt from 1998, and a $4,081 judgment from a homeowners association. Other debts included various medical bills, credit card balances, utility bills, and telephone service charges, some dating back to the late 1990s or early 2000s.

While the applicant disputed some debts, such as a $238 cable bill and an $8,886 student loan, and attributed others to his late wife or a brother, many remained unpaid. He stated that several debts, including medical bills and credit card balances, were referred to "Company A" for a repayment plan, but these debts were not yet paid. He also cited personal difficulties, such as a custody dispute, as contributing factors to his financial struggles.

Ultimately, the clearance was denied because the applicant demonstrated a long history of being unwilling or unable to meet his financial obligations. Despite some efforts to consolidate debts, he failed to provide proof of a clear financial plan or effective debt management, leaving approximately $45,000 in undisputed delinquent debts unpaid.

Why the Applicant Was Denied

Applicant has a long history of being unwilling or unable to meet his financial obligations.
Applicant has approximately $45,000 of undisputed delinquent debts that remain unpaid.
Applicant did not provide proof of a clear financial plan or evidence of effective debt management.

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 ControlApplicant experienced periods of unemployment and personal loss, but did not act responsibly with the life insurance proceeds.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant has made some payments through a debt consolidation company, but lacks clarity on which debts are being addressed.
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtDebts in SOR ¶¶ 1.b and 1.f are reported as disputed on the 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 issuedNov 2, 2009
Answer filedJan 5, 2010
Hearing heldApr 28, 2010
Decision dateMay 21, 2010

Cite For

Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
Importance of Demonstrating Effective Debt Management and Financial Responsibility
Consideration of Mitigating Conditions Related to Financial Difficulties

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 he owed the debt in SOR ¶ 1.a ($15,426). This debt was a loan for a vehicle that was repossessed approximately three years ago. $15,426	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	The debt in SOR ¶ 1.b ($238) is for cable services. Applicant denies the debt and contacted the creditor. He was told they do not have an account in his name. The debt is reported as disputed on his credit report. $238	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	The debts in SOR ¶¶ 1.c ($233) and 1.d ($232) are medical bills that have been owed for approximately two years. Applicant stated he sends his bills to Company A and they are supposed to pay them. He believes the debts are included in his repayment plan with Company A, but they are not paid yet. $233	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	specific text not stated in this decision $232	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.e	The debt in SOR ¶ 1.e ($3,442) is a credit card debt owed from approximately 1998. Applicant defaulted on the debt in about 1999. He has not made any payments on the debt. He stated it was referred to Company A. $3,442	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant believes the debt in SOR ¶ 1.f ($1,179) belonged to his late wife and was in her name. He believed the debt should have been charged off when she passed away. He does not believe he should pay the debt and has disputed it with the credit bureau. $1,179	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	The debt in SOR ¶ 1.g ($5,575) is a medical debt. Applicant stated he has no idea what the account is. He has not taken any action to inquire about the account. The last activity on the account was June 2003. It remains unpaid. $5,575	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	The debt in SOR ¶ 1.h ($1,053) is a credit card debt from 1998. Applicant stated he did not know why he did not pay it. He made a couple of payments and then became overwhelmed with his debts, so stopped paying them. This occurred during the time he was in a custody dispute with his children’s grandparents. $1,053	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	The debt in SOR ¶ 1.i ($8,886) is a student loan debt that Applicant denies. He stated he has been disputing this debt since he was 18 years old. He adamantly stated the debt does not belong to him. $8,886	For Applicant	Student Loan Debt	Denied	—	—	—
1.j	The debt in SOR ¶ 1.j ($306) is a debt for a cell phone. Applicant opened an account for his brother. He stated he did not know that he was ultimately responsible for the debt when he signed the contract. His brother did not pay the bill. $306	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.k	The debt in SOR ¶ 1.k ($4,081) is a judgment obtained by a homeowners association against Applicant for violations while he lived there. He stated he received documents that he was being sued and contacted the court to postpone the hearing. He stated he was never notified of the hearing. $4,081	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	The debt in SOR ¶ 1.l ($225) is a phone bill for land line telephone services. The debt was incurred in approximately 2000 or 2001. It is not paid. Applicant stated he referred it to Company A in 2009. $225	Against Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	The debt in SOR ¶ 1.m ($5,526) is for a credit card. The debt was incurred in approximately 1999. No payments have been made since 1999. He referred the debt to Company A. $5,526	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	The debts in SOR ¶¶ 1.n ($2,625) and 1.o ($6,091) are credit card debts from 1999. Applicant explained he paid very little on the debts and they have been referred to Company A. They are not paid. $2,625	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	specific text not stated in this decision $6,091	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.p	The debt in SOR ¶ 1.p ($687) is a medical debt from 2003. Applicant believes he owes the debt. He stated he contacted the creditor in 2009. He referred the debt to Company A. It is unpaid. $687	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	The debt in SOR ¶ 1.q ($1,270) is a debt for telephone services. Applicant admitted the debt was incurred in approximately 2000 or 2001, and he has not paid it. He stated it was referred to Company A. $1,270	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.r	The debt in SOR ¶ 1.r ($94) is for utilities incurred by Applicant in approximately 2003. He stated he gave a check to pay the bill to his mother. The bill was not paid. He does not think he referred this debt to Company A. $94	Against Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.s	The debt in SOR ¶ 1.s ($3,678) is a credit card debt owed from approximately 2000. Applicant admitted it is not paid. He stated he referred the debt to Company A. $3,678	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.t	The debt in SOR ¶ 1.t ($174) is a debt for utilities. Applicant stated he thought it was paid. It has been delinquent since 2005. It is unpaid and it has not been referred to Company A. Applicant stated he intended to pay it. $174	Against Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.u	The debt in SOR ¶ 1.u ($1,057) is a credit card debt owed since approximately 2000. It is not paid. Applicant stated he referred the debt to Company A. $1,057	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted he owed the debt in SOR ¶ 1.a ($15,426). This debt was a loan for a vehicle that was repossessed approximately three years ago.

$15,426

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

The debt in SOR ¶ 1.b ($238) is for cable services. Applicant denies the debt and contacted the creditor. He was told they do not have an account in his name. The debt is reported as disputed on his credit report.

$238

For Applicant

Unspecified Financial

Denied

—

1.c

The debts in SOR ¶¶ 1.c ($233) and 1.d ($232) are medical bills that have been owed for approximately two years. Applicant stated he sends his bills to Company A and they are supposed to pay them. He believes the debts are included in his repayment plan with Company A, but they are not paid yet.

$233

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

specific text not stated in this decision

$232

Against Applicant

Unspecified Financial

Unknown

—

1.e

The debt in SOR ¶ 1.e ($3,442) is a credit card debt owed from approximately 1998. Applicant defaulted on the debt in about 1999. He has not made any payments on the debt. He stated it was referred to Company A.

$3,442

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant believes the debt in SOR ¶ 1.f ($1,179) belonged to his late wife and was in her name. He believed the debt should have been charged off when she passed away. He does not believe he should pay the debt and has disputed it with the credit bureau.

$1,179

For Applicant

Unspecified Financial

Denied

—

1.g

The debt in SOR ¶ 1.g ($5,575) is a medical debt. Applicant stated he has no idea what the account is. He has not taken any action to inquire about the account. The last activity on the account was June 2003. It remains unpaid.

$5,575

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

The debt in SOR ¶ 1.h ($1,053) is a credit card debt from 1998. Applicant stated he did not know why he did not pay it. He made a couple of payments and then became overwhelmed with his debts, so stopped paying them. This occurred during the time he was in a custody dispute with his children’s grandparents.

$1,053

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

The debt in SOR ¶ 1.i ($8,886) is a student loan debt that Applicant denies. He stated he has been disputing this debt since he was 18 years old. He adamantly stated the debt does not belong to him.

$8,886

For Applicant

Student Loan Debt

Denied

—

1.j

The debt in SOR ¶ 1.j ($306) is a debt for a cell phone. Applicant opened an account for his brother. He stated he did not know that he was ultimately responsible for the debt when he signed the contract. His brother did not pay the bill.

$306

Against Applicant

Unspecified Financial

Admitted

—

1.k

The debt in SOR ¶ 1.k ($4,081) is a judgment obtained by a homeowners association against Applicant for violations while he lived there. He stated he received documents that he was being sued and contacted the court to postpone the hearing. He stated he was never notified of the hearing.

$4,081

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

The debt in SOR ¶ 1.l ($225) is a phone bill for land line telephone services. The debt was incurred in approximately 2000 or 2001. It is not paid. Applicant stated he referred it to Company A in 2009.

$225

Against Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

The debt in SOR ¶ 1.m ($5,526) is for a credit card. The debt was incurred in approximately 1999. No payments have been made since 1999. He referred the debt to Company A.

$5,526

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

The debts in SOR ¶¶ 1.n ($2,625) and 1.o ($6,091) are credit card debts from 1999. Applicant explained he paid very little on the debts and they have been referred to Company A. They are not paid.

$2,625

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

specific text not stated in this decision

$6,091

Against Applicant

Unspecified Financial

Unknown

—

1.p

The debt in SOR ¶ 1.p ($687) is a medical debt from 2003. Applicant believes he owes the debt. He stated he contacted the creditor in 2009. He referred the debt to Company A. It is unpaid.

$687

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

The debt in SOR ¶ 1.q ($1,270) is a debt for telephone services. Applicant admitted the debt was incurred in approximately 2000 or 2001, and he has not paid it. He stated it was referred to Company A.

$1,270

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.r

The debt in SOR ¶ 1.r ($94) is for utilities incurred by Applicant in approximately 2003. He stated he gave a check to pay the bill to his mother. The bill was not paid. He does not think he referred this debt to Company A.

$94

Against Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.s

The debt in SOR ¶ 1.s ($3,678) is a credit card debt owed from approximately 2000. Applicant admitted it is not paid. He stated he referred the debt to Company A.

$3,678

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.t

The debt in SOR ¶ 1.t ($174) is a debt for utilities. Applicant stated he thought it was paid. It has been delinquent since 2005. It is unpaid and it has not been referred to Company A. Applicant stated he intended to pay it.

$174

Against Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.u

The debt in SOR ¶ 1.u ($1,057) is a credit card debt owed since approximately 2000. It is not paid. Applicant stated he referred the debt to Company A.

$1,057

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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