ISCR Case 09-03388.h1

Case Headnote

ISCR Case No. 09-03388.h1

deniedMar 19, 2010· Hon. Mark W. Harvey· hearing

Summary

A 37-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to nine delinquent debts totaling $26,833. The Statement of Reasons (SOR) detailed several specific financial obligations. One significant debt, a $16,346 credit card judgment from June 2003, remained unresolved, with no evidence of recent contact or payment attempts by the applicant.

While some debts were resolved or partially addressed, the applicant failed to provide sufficient proof of payment for others. A $50 television-related account was resolved and removed from his credit report, and a $60 medical debt was paid. An $85 payment was made towards a $117 collection debt. However, for a $411 telecommunications debt settled for $127, and an $825 home improvement debt with a payment plan, the applicant did not provide proof of payments.

Despite a salary increase and some payments, the applicant only provided proof of $500 in payments, which was deemed insufficient given the total amount owed. The decision highlighted a lack of sustained effort to resolve the majority of his financial obligations, indicating ongoing financial issues and raising concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant only provided proof of $500 in payments towards his debts, which was insufficient given the total amount owed.
He failed to make sufficient efforts to resolve five of his delinquent debts, indicating a lack of financial responsibility.
The applicant's financial issues were ongoing and not adequately addressed, raising concerns about his reliability and trustworthiness.

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 That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial situation was impacted by his spouse's unemployment and medical issues, but insufficient evidence was provided to show responsible actions taken.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant admitted responsibility for his debts and made some payments, but did not demonstrate adequate efforts to resolve all debts.
AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant learned about debt resolution strategies but did not provide sufficient evidence of implementation.

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”

Procedural Posture

SOR issuedNov 19, 2009
Answer filedDec 10, 2009
Hearing heldJan 27, 2010Decided on the written record.
Decision dateMar 19, 2010

Cite For

Insufficient Efforts to Resolve Delinquent Debts Under Guideline F
Impact of Financial Issues on Security Clearance Eligibility
Criteria for Establishing Financial Responsibility in Security Clearance Cases

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	SOR ¶ 1.a ($16,346)—DEBT UNRESOLVED. In June 2003, a judgment for this credit card account was entered against Applicant. There is no evidence Applicant contacted the creditor in the most recent 12 months or attempted to establish a payment plant to resolve this debt. $16,346	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	SOR ¶ 1.b ($50)—RESOLVED. Applicant had a television-type account, and it was transferred to a collection company. On December 3, 2009, the debt was transferred back to the television company. The creditor said the delinquent account would be removed from his credit report. $50	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	SOR ¶ 1.d ($411)—PAYMENT PLAN, BUT NO PROOF OF ANY PAYMENTS. Applicant had a debt to a telecommunications company, which was transferred to a collection company. On December 3, 2009, he settled the debt for $127. The payment was due on December 3, 2009. He said he paid it; however, he did not provide any proof he paid this debt. $411	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	SOR ¶ 1.e ($60)—PAID. Applicant’s medical debt for $60 was paid on December 4, 2009. $60	For Applicant	Medical Debt	Admitted	—	—	—
1.f	SOR ¶ 1.f ($825)—PAYMENT PLAN, BUT NO PROOF OF ANY PAYMENTS. Applicant had a debt owed to a home improvement center. A February 18, 2010, payment plan indicates payments of $413 are due on February 18, 2010, and on March 18, 2010. $825	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	SOR ¶ 1.i ($117)—PAID. Applicant had a debt to a collection company. On December 10, 2009, he made an $85 payment to the creditor. $117	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a ($16,346)—DEBT UNRESOLVED. In June 2003, a judgment for this credit card account was entered against Applicant. There is no evidence Applicant contacted the creditor in the most recent 12 months or attempted to establish a payment plant to resolve this debt.

$16,346

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

SOR ¶ 1.b ($50)—RESOLVED. Applicant had a television-type account, and it was transferred to a collection company. On December 3, 2009, the debt was transferred back to the television company. The creditor said the delinquent account would be removed from his credit report.

$50

For Applicant

Unspecified Financial

Admitted

—

1.d

SOR ¶ 1.d ($411)—PAYMENT PLAN, BUT NO PROOF OF ANY PAYMENTS. Applicant had a debt to a telecommunications company, which was transferred to a collection company. On December 3, 2009, he settled the debt for $127. The payment was due on December 3, 2009. He said he paid it; however, he did not provide any proof he paid this debt.

$411

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

SOR ¶ 1.e ($60)—PAID. Applicant’s medical debt for $60 was paid on December 4, 2009.

$60

For Applicant

Medical Debt

Admitted

—

1.f

SOR ¶ 1.f ($825)—PAYMENT PLAN, BUT NO PROOF OF ANY PAYMENTS. Applicant had a debt owed to a home improvement center. A February 18, 2010, payment plan indicates payments of $413 are due on February 18, 2010, and on March 18, 2010.

$825

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

SOR ¶ 1.i ($117)—PAID. Applicant had a debt to a collection company. On December 10, 2009, he made an $85 payment to the creditor.

$117

For Applicant

Unspecified Financial

Admitted

—

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES