ISCR Case 09-00985.h1

Case Headnote

ISCR Case No. 09-00985.h1

grantedJul 1, 2009· Hon. Robert J. Tuider· hearing

Summary

A 48-year-old lead dispatcher for a defense contractor was initially denied a security clearance due to financial concerns under Guideline F. The Statement of Reasons (SOR) cited eight delinquent debts totaling $16,115. These included an education loan settled for $212 in November 2009, a medical bill paid in full by June 2010, and a credit card account settled with a final payment of $178 in May 2009.

Additional debts included a computer purchase for which the applicant is current on $100 monthly payments, two cell phone service accounts settled for $647 and $48 respectively by July 2010, and a telephone service account settled for $125 in June 2009. A past-due student loan of $10,495 was repaid through federal income tax refund recoupment, with no balance remaining as of June 2010.

The applicant successfully mitigated these concerns by demonstrating that all debts were resolved or paid. She attributed her financial difficulties to circumstances beyond her control, specifically a recent breast cancer diagnosis and a pending divorce. The judge granted the security clearance, noting the applicant's good-faith efforts to manage her finances, her meaningful track record of debt repayment, and positive character references.

Why the Applicant Prevailed

All debts identified in the SOR were resolved or paid off.
The applicant acted responsibly under circumstances largely beyond her control, including medical issues and a pending divorce.
The applicant demonstrated a meaningful track record of debt repayment and maintained current monthly expenses.

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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”
— AG ¶ 2(c)

Procedural Posture

SOR issuedSep 9, 2009
Answer filedNov 30, 2009
Hearing heldJun 29, 2010
Decision dateJul 7, 2010

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Circumstances Beyond Control in Financial Cases
Whole-person Concept in Security Clearance Evaluations

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	The debt alleged in SOR ¶ 1.a. is a collection account for an education loan in the amount of $424. Applicant settled this account for $212, which she paid in November 2009. $424	For Applicant	Student Loan 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 debt alleged in SOR ¶ 1.b. is a past-due account for a medical bill in the amount of $25. Applicant paid this account in full in June 2010. $25	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.c	The debt alleged in SOR ¶ 1.c. is a past-due credit card account in the amount of $711. Applicant settled this account for a lesser amount and made a final payment of $178 in May 2009. $711	For Applicant	Credit Card 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.d	The debt alleged in SOR ¶ 1.d. is a collection account for a computer she purchased for $3,020. Applicant made payment arrangements to pay the creditor $100 monthly. She is current on her monthly payments. $3,020	For Applicant	Unspecified Financial	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 Payment Plan with Creditor
1.e	The debt alleged in SOR ¶ 1.e. is a collection account for cell phone service in the amount of $1,079. Applicant settled this account with the creditor for $647, and made her last payment of $497 in July 2010. $1,079	For Applicant	Utility or Phone 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.f	The debt alleged in SOR ¶ 1.f. is a collection account for cell phone service (different company than debt in SOR ¶ 1.e.) in the amount of $111. Applicant settled this account for $48, which she paid in July 2010. $111	For Applicant	Utility or Phone 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.g	The debt alleged in SOR ¶ 1.g. is a collection account for telephone service in the amount of $250. Applicant settled this account for $125, which she paid in June 2009. $250	For Applicant	Utility or Phone 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.h	The debt alleged in SOR ¶ 1.h. is for a past-due student loan in the amount of $10,495. This debt was repaid by recoupment of federal income tax refunds owed to Applicant. As of June 2010, Applicant no longer had a balance due on this account. $10,495	For Applicant	Student Loan 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

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt alleged in SOR ¶ 1.a. is a collection account for an education loan in the amount of $424. Applicant settled this account for $212, which she paid in November 2009.

$424

For Applicant

Student Loan 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 debt alleged in SOR ¶ 1.b. is a past-due account for a medical bill in the amount of $25. Applicant paid this account in full in June 2010.

$25

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.c

The debt alleged in SOR ¶ 1.c. is a past-due credit card account in the amount of $711. Applicant settled this account for a lesser amount and made a final payment of $178 in May 2009.

$711

For Applicant

Credit Card 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.d

The debt alleged in SOR ¶ 1.d. is a collection account for a computer she purchased for $3,020. Applicant made payment arrangements to pay the creditor $100 monthly. She is current on her monthly payments.

$3,020

For Applicant

Unspecified Financial

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

Payment Plan with Creditor

1.e

The debt alleged in SOR ¶ 1.e. is a collection account for cell phone service in the amount of $1,079. Applicant settled this account with the creditor for $647, and made her last payment of $497 in July 2010.

$1,079

For Applicant

Utility or Phone 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.f

The debt alleged in SOR ¶ 1.f. is a collection account for cell phone service (different company than debt in SOR ¶ 1.e.) in the amount of $111. Applicant settled this account for $48, which she paid in July 2010.

$111

For Applicant

Utility or Phone 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.g

The debt alleged in SOR ¶ 1.g. is a collection account for telephone service in the amount of $250. Applicant settled this account for $125, which she paid in June 2009.

$250

For Applicant

Utility or Phone 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.h

The debt alleged in SOR ¶ 1.h. is for a past-due student loan in the amount of $10,495. This debt was repaid by recoupment of federal income tax refunds owed to Applicant. As of June 2010, Applicant no longer had a balance due on this account.

$10,495

For Applicant

Student Loan 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

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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