ISCR Case 09-00851.h1

Case Headnote

ISCR Case No. 09-00851.h1

grantedJul 1, 2009· Hon. Marc E. Curry· hearing

Summary

A 45-year-old single mother and U.S. Air Force veteran was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of significant delinquent debts and omissions on her security clearance application.

The applicant successfully addressed numerous financial issues. She resolved a $422 dental bill, which had increased to $1,185, through a negotiated settlement of $969. She also settled a $172 department store debt and a $450 debt for $221. Additionally, she assumed a $27,600 student loan for her son, making consistent $200 monthly payments, and began making payments on a $24,550 deficiency from a voluntarily repossessed car. While disputing several other debts, including a $2,694 loan, an $871 phone bill, a $3,888 loan, a $1,553 credit card debt, and a $1,898 judgment, she demonstrated proactive steps such as making escrow payments or having her attorney send dispute letters.

The judge found that the applicant mitigated the concerns by demonstrating responsible financial management, resolving approximately $35,000 of the alleged debt, and maintaining a budget with sufficient income and savings. Her omissions on the application were deemed unintentional, leading to the ultimate decision to grant the security clearance.

Why the Applicant Prevailed

The applicant successfully organized her finances and addressed delinquent debts, resolving approximately $35,000 of the alleged debt.
The judge found that the applicant's omissions on her application were unintentional, alleviating concerns under Guideline E.
The applicant maintained a budget and demonstrated sufficient income and savings to manage her financial obligations.

Conditions Referenced

Disqualifying

F.1raisedFinancial ConsiderationsThe applicant had a history of financial problems and delinquent debts.
E.2raisedPersonal ConductThe applicant was alleged to have falsified her security clearance application by omitting delinquent debts.

Mitigating

F.20(b)appliedFinancial ConsiderationsThe conditions that resulted in the financial problem were largely beyond the applicant's control.
F.20(c)appliedFinancial ConsiderationsThe applicant acted responsibly under the circumstances and received assistance in managing her debts.
F.20(d)appliedFinancial ConsiderationsThe applicant initiated a good-faith effort to repay overdue creditors and resolve debts.
E.2appliedPersonal ConductThe judge concluded that the applicant's omissions were unintentional.

Key Rule Quoted

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

Procedural Posture

SOR issuedSep 3, 2009
Answer filedOct 13, 2009
Hearing heldJan 5, 2010Hearing held as scheduled.
Decision dateMar 29, 2010

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond the Applicant's Control
Unintentional Omissions on Security Clearance Applications Under Guideline E
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	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a–2.d	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant		Financial		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.d

4 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

Financial

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	SOR subparagraph 1.a is a dental bill for $422 from August 2004. Applicant’s dentist originally submitted her a bill for $2.40, which noted that her insurance company would cover the remainder. Later, Applicant discovered that her insurance company did not pay its expected share. Applicant contested the bill. By July 2009, the dental office had assigned it to a collection agent and the balance had increased to $1,185. Applicant and the collection agent negotiated a settlement for $969. In October 2009, Applicant began satisfying it. She satisfied it completely by February 2010. $422	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	The creditor listed in SOR subparagraph 1.b is a collection agent for a loan allegedly delinquent since 2002. Applicant disputes this claim, asserting that she had satisfied it before retiring from the military. The alleged balance due is $2,694. Since April 2009, Applicant has been making monthly payments into an escrow account while the dispute is pending. So far, she has paid $726. $2,694	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Paid in Full
1.f	SOR subparagraph 1.f, as duplicated in SOR subparagraph 1.t, is a disputed phone bill for $871. Applicant acknowledges falling behind when she was unemployed, but contends she satisfied it. Her attorney wrote a dispute letter to the creditor on October 2, 2009. $871	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.h	SOR subparagraph 1.h is a debt Applicant allegedly owes stemming from a loan for which she applied while in the military. She contends she satisfied it in 2003 through automatic allotments before retiring. Her attorney notified the collection agent of the dispute on October 13, 2009. After conducting an investigation, the collection agent rejected Applicant’s dispute, and concluded that she owed $3,888. Applicant still disputes the claim and contends that a credit report indicates that she satisfied it. Although AE M indicates she satisfied a loan owed to the same creditor, the account numbers are different. $3,888	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.k	The debt listed in SOR subparagraph 1.k is a student loan her oldest son obtained to help finance his graduate school education. Although Applicant did not cosign the loan, she assumed it after he defaulted in March 2009. Consistent with the agreement, Applicant now owes approximately $27,600. She has been making $200 monthly payments, as agreed, since March 2009. $27,600	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Paid in Full
1.m	The debt listed in SOR subparagraph 1.m and duplicated in SOR subparagraphs 1.o and 1.hh is the deficiency owed from a car that was voluntarily repossessed at or about the time Applicant’s relatives were living with her. As of March 2009, the balance was $24,550. She has been making monthly payments since then. $24,550	For Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Documented Payment Plan with Creditor
1.n	SOR subparagraph 1.n is a debt for $172 owed to a department store. Applicant paid it through a negotiated settlement in March 2009. $172	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.r	SOR subparagraph 1.r is a collection agent for a credit card company that is delinquent in the amount of $1,553. Applicant disputes this bill contending that her cousin accrued it. Nevertheless, she has been making monthly payments while the dispute is pending. As of January 2010, the balance was $331. $1,553	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.aa	SOR subparagraph 1.aa is a debt for $450. Applicant settled it for $221 and satisfied it in March 2009. $450	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.gg	Applicant identified the 1993 judgment for $1,898 listed in SOR subparagraph 1.gg as stemming from a delinquent credit card account that her first husband opened approximately 20 years ago. Applicant denies responsibility for this account contending that her name was not on the account and that her ex-husband satisfied it years ago. She attempted to locate court records verifying this judgment was satisfied, but was unsuccessful. $1,898	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR subparagraph 1.a is a dental bill for $422 from August 2004. Applicant’s dentist originally submitted her a bill for $2.40, which noted that her insurance company would cover the remainder. Later, Applicant discovered that her insurance company did not pay its expected share. Applicant contested the bill. By July 2009, the dental office had assigned it to a collection agent and the balance had increased to $1,185. Applicant and the collection agent negotiated a settlement for $969. In October 2009, Applicant began satisfying it. She satisfied it completely by February 2010.

$422

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

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

Documented

Debt Paid in Full

1.b

The creditor listed in SOR subparagraph 1.b is a collection agent for a loan allegedly delinquent since 2002. Applicant disputes this claim, asserting that she had satisfied it before retiring from the military. The alleged balance due is $2,694. Since April 2009, Applicant has been making monthly payments into an escrow account while the dispute is pending. So far, she has paid $726.

$2,694

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Paid in Full

1.f

SOR subparagraph 1.f, as duplicated in SOR subparagraph 1.t, is a disputed phone bill for $871. Applicant acknowledges falling behind when she was unemployed, but contends she satisfied it. Her attorney wrote a dispute letter to the creditor on October 2, 2009.

$871

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.h

SOR subparagraph 1.h is a debt Applicant allegedly owes stemming from a loan for which she applied while in the military. She contends she satisfied it in 2003 through automatic allotments before retiring. Her attorney notified the collection agent of the dispute on October 13, 2009. After conducting an investigation, the collection agent rejected Applicant’s dispute, and concluded that she owed $3,888. Applicant still disputes the claim and contends that a credit report indicates that she satisfied it. Although AE M indicates she satisfied a loan owed to the same creditor, the account numbers are different.

$3,888

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.k

The debt listed in SOR subparagraph 1.k is a student loan her oldest son obtained to help finance his graduate school education. Although Applicant did not cosign the loan, she assumed it after he defaulted in March 2009. Consistent with the agreement, Applicant now owes approximately $27,600. She has been making $200 monthly payments, as agreed, since March 2009.

$27,600

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Paid in Full

1.m

The debt listed in SOR subparagraph 1.m and duplicated in SOR subparagraphs 1.o and 1.hh is the deficiency owed from a car that was voluntarily repossessed at or about the time Applicant’s relatives were living with her. As of March 2009, the balance was $24,550. She has been making monthly payments since then.

$24,550

For Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Documented

Payment Plan with Creditor

1.n

SOR subparagraph 1.n is a debt for $172 owed to a department store. Applicant paid it through a negotiated settlement in March 2009.

$172

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.r

SOR subparagraph 1.r is a collection agent for a credit card company that is delinquent in the amount of $1,553. Applicant disputes this bill contending that her cousin accrued it. Nevertheless, she has been making monthly payments while the dispute is pending. As of January 2010, the balance was $331.

$1,553

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.aa

SOR subparagraph 1.aa is a debt for $450. Applicant settled it for $221 and satisfied it in March 2009.

$450

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.gg

Applicant identified the 1993 judgment for $1,898 listed in SOR subparagraph 1.gg as stemming from a delinquent credit card account that her first husband opened approximately 20 years ago. Applicant denies responsibility for this account contending that her name was not on the account and that her ex-husband satisfied it years ago. She attempted to locate court records verifying this judgment was satisfied, but was unsuccessful.

$1,898

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed 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