ISCR Case 09-03478.h1

Case Headnote

ISCR Case No. 09-03478.h1

deniedFeb 22, 2010· Hon. Carol G. Ricciardello· hearing

Summary

A 57-year-old administrative assistant was denied a security clearance under Guideline F (Financial Considerations) due to a significant history of unpaid debts. The applicant faced 24 allegations of financial irresponsibility, including multiple credit card judgments and debts, medical bills, and other outstanding accounts.

Specific debts included a $3,188 credit card judgment, on which she had a remaining balance of $216, and another $2,363 credit card judgment with a current balance of $1,352. Other notable debts ranged from $3,422 for a credit card judgment to smaller amounts for medical services, telephone bills, and retail accounts. One credit card debt of $7,705 was also cited. The applicant was also a cardholder on her father's credit card, making purchases and payments, but the creditor would not discuss the bill with her as she was not the primary account holder.

Despite personal challenges, including caring for ailing parents and a work-related injury, the applicant failed to demonstrate sufficient financial responsibility. Most debts remained unpaid and delinquent, and she did not take adequate action to resolve her financial issues, even with a budget plan in place. Consequently, the security clearance application was denied.

Why the Applicant Was Denied

Applicant has a significant history of being unwilling or unable to meet her financial obligations.
Most debts remain unpaid and delinquent, raising security concerns under Guideline F.
Applicant did not take sufficient action to resolve her financial issues, despite having a budget plan.

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 ControlApplicant's financial difficulties were exacerbated by caring for her parents and a work-related injury.
AG ¶ 20(e)appliedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant disputed the debt owed by her father.
AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant's financial issues are recent and ongoing.
AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being ResolvedNo evidence of financial counseling was presented.
AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant has not made good-faith payments to most creditors.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedOct 14, 2009
Answer filedNov 9, 2009
Hearing heldJan 26, 2010
Decision dateFeb 22, 2010

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Caregiving Responsibilities on Financial Stability
Consideration of Mitigating Conditions Under Guideline F

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	Judgment for a credit card debt ($3,188). Applicant began making payments on the judgment in 2008. She has satisfied all but the remaining balance of $216, which she intends to pay. $3,188	For Applicant	Credit Card Debt	Admitted	—	—	—
1.b	Judgment for a credit card debt ($2,363). Applicant has been making payments to resolve the debt and the current balance owed is $1,352. $2,363	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.c	Credit card judgment ($3,422). $3,422	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Credit card debt ($694). $694	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Medical bill ($320). $320	Against Applicant	Medical Debt	Admitted	—	—	—
1.f	Unknown medical account ($97) that Applicant believes is a duplicate of 1.h ($97). $97	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Medical bill ($268). $268	Against Applicant	Medical Debt	Admitted	—	—	—
1.h	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Credit card debt ($3,176). $3,176	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.j	Credit card debt to a clothing store ($765). $765	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.k	Credit card that is in Applicant’s father’s name and she is a card holder. Applicant stated that her father has held this card since the 1960s and she was a card holder. She made purchases using the card over the years and stated she paid her portion of the bill when she made the purchases. She stated that she has made payments on behalf of her father to help satisfy the bill. The creditor will not discuss the bill with her because she is not listed as the primary holder of the account.	For Applicant	Credit Card Debt	Admitted	—	—	—
1.l	Credit card debt ($7,705). $7,705	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.m	Credit card debt ($732). $732	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.n	Debt to an eyeglass store ($690). $690	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.o	Debt to a clothing store ($777). $777	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.p	Credit card debt ($1,968). $1,968	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.q	Debt for a gasoline credit card ($563). $563	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.r	Debt for telephone services ($119). $119	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.s	Debt for telephones services ($83). $83	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.t	Debt for telephone services ($320). $320	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.u	Unknown debt ($1,279). $1,279	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.v	Debt for mail-order vitamins.	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.w	Unknown account ($367). $367	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.x	For medical services ($341). $341	Against Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Judgment for a credit card debt ($3,188). Applicant began making payments on the judgment in 2008. She has satisfied all but the remaining balance of $216, which she intends to pay.

$3,188

For Applicant

Credit Card Debt

Admitted

—

1.b

Judgment for a credit card debt ($2,363). Applicant has been making payments to resolve the debt and the current balance owed is $1,352.

$2,363

Against Applicant

Credit Card Debt

Admitted

—

1.c

Credit card judgment ($3,422).

$3,422

Against Applicant

Credit Card Debt

Admitted

—

1.d

Credit card debt ($694).

$694

Against Applicant

Credit Card Debt

Admitted

—

1.e

Medical bill ($320).

$320

Against Applicant

Medical Debt

Admitted

—

1.f

Unknown medical account ($97) that Applicant believes is a duplicate of 1.h ($97).

$97

Against Applicant

Unspecified Financial

Admitted

—

1.g

Medical bill ($268).

$268

Against Applicant

Medical Debt

Admitted

—

1.h

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

—

1.i

Credit card debt ($3,176).

$3,176

Against Applicant

Credit Card Debt

Admitted

—

1.j

Credit card debt to a clothing store ($765).

$765

Against Applicant

Credit Card Debt

Admitted

—

1.k

Credit card that is in Applicant’s father’s name and she is a card holder. Applicant stated that her father has held this card since the 1960s and she was a card holder. She made purchases using the card over the years and stated she paid her portion of the bill when she made the purchases. She stated that she has made payments on behalf of her father to help satisfy the bill. The creditor will not discuss the bill with her because she is not listed as the primary holder of the account.

For Applicant

Credit Card Debt

Admitted

—

1.l

Credit card debt ($7,705).

$7,705

Against Applicant

Credit Card Debt

Admitted

—

1.m

Credit card debt ($732).

$732

Against Applicant

Credit Card Debt

Admitted

—

1.n

Debt to an eyeglass store ($690).

$690

Against Applicant

Unspecified Financial

Admitted

—

1.o

Debt to a clothing store ($777).

$777

Against Applicant

Unspecified Financial

Admitted

—

1.p

Credit card debt ($1,968).

$1,968

Against Applicant

Credit Card Debt

Admitted

—

1.q

Debt for a gasoline credit card ($563).

$563

Against Applicant

Unspecified Financial

Admitted

—

1.r

Debt for telephone services ($119).

$119

Against Applicant

Utility or Phone Debt

Admitted

—

1.s

Debt for telephones services ($83).

$83

Against Applicant

Utility or Phone Debt

Admitted

—

1.t

Debt for telephone services ($320).

$320

Against Applicant

Utility or Phone Debt

Admitted

—

1.u

Unknown debt ($1,279).

$1,279

Against Applicant

Unspecified Financial

Admitted

—

1.v

Debt for mail-order vitamins.

Against Applicant

Unspecified Financial

Admitted

—

1.w

Unknown account ($367).

$367

Against Applicant

Unspecified Financial

Admitted

—

1.x

For medical services ($341).

$341

Against Applicant

Medical Debt

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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION