ISCR Case 10-01657.h1

Case Headnote

ISCR Case No. 10-01657.h1

grantedJan 26, 2012· Hon. Jennifer I. Goldstein· hearing

Summary

A 42-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) due to approximately $19,801 in financial delinquencies. The Statement of Reasons detailed several outstanding debts, including credit card balances, a personal loan, and a vehicle registration fee.

The applicant successfully mitigated most of these concerns. He satisfied a department store credit card debt of approximately $3,154, another department store credit card debt of about $387, and a store credit card debt of approximately $2,172, which was settled for less than the full balance. He also paid a $195 debt to his city for vehicle registration, a communications company debt of approximately $236, and a personal loan of approximately $1,939. These payments were reflected in his December 9, 2011 credit report as "paid" or "paid collection."

However, one credit card debt of approximately $1,244 remained unresolved, as the applicant was unable to locate the current creditor. Despite this, the administrative judge found that the applicant's thorough and systematic efforts to repay his debts, along with his demonstrated commitment to resolving financial issues, warranted a favorable decision. The applicant's financial difficulties were attributed largely to unexpected expenses, and he showed maturity in managing his finances. Eligibility for a security clearance was granted.

Why the Applicant Prevailed

The applicant satisfied all but one of his delinquent accounts, demonstrating a commitment to resolving his financial issues.
The applicant's recent efforts to repay debts were thorough and systematic, indicating responsible behavior.
The applicant's financial difficulties were largely due to unexpected expenses, and he has shown maturity in managing his finances.

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)rejectedConditions Beyond the Person's ControlThe applicant did not act responsibly with respect to his debts until after receiving the SOR.
AG ¶ 20(c)appliedReceiving Counseling or Evidence of Problem ResolutionThe applicant demonstrated that his financial problems are being resolved through recent debt payments.
AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant made significant efforts to repay his debts, reducing his total debt substantially.

Key Rule Quoted

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

Procedural Posture

SOR issuedMar 3, 2011
Answer filedApr 11, 2011
Hearing heldDec 14, 2011
Decision dateJan 26, 2012

Cite For

Mitigation of Financial Considerations Under Guideline F
Good Faith Efforts to Resolve Debts
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	specific text not stated in this decision	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant was indebted to a collection agent for a department store credit card in the approximate amount of $3,154. Applicant used this credit card to purchase appliances and clothing. He fell behind in payments on this account in the late 1980’s and had been trying to catch up on payments since that time. He had stopped communicating with this creditor approximately two years prior to receiving the SOR. Once Appellant received the SOR, he testified he satisfied this account. Applicant’s December 9, 2011 report of credit lists this debt as “paid collection.” $3,154	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	Applicant is indebted to a collection agent for a credit card in the approximate amount of $1,244. Applicant testified that he fell behind on this account because he charged too much on the credit card. He indicated that he contacted the creditor listed on the SOR, but that creditor no longer holds his account. He attempted to track down who now holds this debt, but was unable to find out who to repay. This debt is still listed on Applicant’s December 9, 2011 credit report as a “charged off account.” $1,244	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant was indebted on a department store credit card in the approximate amount of $387. He presented a copy of his bank statement showing a $386.94 payment made by debit card. Applicant’s December 9, 2011 report of credit lists this debt as “paid.” $387	For Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant was indebted to a collection agent for a store credit card in the approximate amount of $2,172. Applicant testified that this account was settled. Applicant’s December 9, 2011 report of credit lists this debt as “account paid for less than full balance.” $2,172	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant was indebted to a collection agent for his city in the approximate amount of $195. This debt was for the registration of Applicant’s vehicle. He testified that he paid this debt. He presented a receipt from this creditor that showed Applicant’s account was “paid in full.” $195	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.g	Applicant was indebted to a collection agent for a communications company in the approximate amount of $236. Applicant testified that he incurred this debt as a result of switching to another provider after the terms of his contract were satisfied. He was charged an early termination fee in error. He testified he disputed the debt, but has since satisfied this account. Applicant presented a copy of his bank statement that shows on March 30, 2011, Applicant paid $151.95 on this debt. Applicant’s December 9, 2011 report of credit lists this debt as “paid.” $236	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.h	Applicant was indebted to a collection agent in the approximate amount of $1,939. This debt was for a personal loan he took approximately four years ago. He testified this debt is now satisfied. Applicant’s December 9, 2011 report of credit lists this debt as “paid collection.” $1,939	For Applicant	Personal Loan Debt	Admitted	—	—	—
1.i	Applicant is indebted to a collection agent for a department store credit card in the approximate amount of $5,688. Appellant testified that this debt is now held by the creditor listed in SOR allegation 1.i. The credit reports in evidence appear to show that 1.a is a duplicate entry for 1.i. It is addressed, below. $5,688	For Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Denied

—

1.b

Applicant was indebted to a collection agent for a department store credit card in the approximate amount of $3,154. Applicant used this credit card to purchase appliances and clothing. He fell behind in payments on this account in the late 1980’s and had been trying to catch up on payments since that time. He had stopped communicating with this creditor approximately two years prior to receiving the SOR. Once Appellant received the SOR, he testified he satisfied this account. Applicant’s December 9, 2011 report of credit lists this debt as “paid collection.”

$3,154

For Applicant

Credit Card Debt

Admitted

—

1.c

Applicant is indebted to a collection agent for a credit card in the approximate amount of $1,244. Applicant testified that he fell behind on this account because he charged too much on the credit card. He indicated that he contacted the creditor listed on the SOR, but that creditor no longer holds his account. He attempted to track down who now holds this debt, but was unable to find out who to repay. This debt is still listed on Applicant’s December 9, 2011 credit report as a “charged off account.”

$1,244

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant was indebted on a department store credit card in the approximate amount of $387. He presented a copy of his bank statement showing a $386.94 payment made by debit card. Applicant’s December 9, 2011 report of credit lists this debt as “paid.”

$387

For Applicant

Credit Card Debt

Admitted

—

1.e

Applicant was indebted to a collection agent for a store credit card in the approximate amount of $2,172. Applicant testified that this account was settled. Applicant’s December 9, 2011 report of credit lists this debt as “account paid for less than full balance.”

$2,172

For Applicant

Credit Card Debt

Admitted

—

1.f

Applicant was indebted to a collection agent for his city in the approximate amount of $195. This debt was for the registration of Applicant’s vehicle. He testified that he paid this debt. He presented a receipt from this creditor that showed Applicant’s account was “paid in full.”

$195

For Applicant

Utility or Phone Debt

Admitted

—

1.g

Applicant was indebted to a collection agent for a communications company in the approximate amount of $236. Applicant testified that he incurred this debt as a result of switching to another provider after the terms of his contract were satisfied. He was charged an early termination fee in error. He testified he disputed the debt, but has since satisfied this account. Applicant presented a copy of his bank statement that shows on March 30, 2011, Applicant paid $151.95 on this debt. Applicant’s December 9, 2011 report of credit lists this debt as “paid.”

$236

For Applicant

Utility or Phone Debt

Admitted

—

1.h

Applicant was indebted to a collection agent in the approximate amount of $1,939. This debt was for a personal loan he took approximately four years ago. He testified this debt is now satisfied. Applicant’s December 9, 2011 report of credit lists this debt as “paid collection.”

$1,939

For Applicant

Personal Loan Debt

Admitted

—

1.i

Applicant is indebted to a collection agent for a department store credit card in the approximate amount of $5,688. Appellant testified that this debt is now held by the creditor listed in SOR allegation 1.i. The credit reports in evidence appear to show that 1.a is a duplicate entry for 1.i. It is addressed, below.

$5,688

For Applicant

Credit Card Debt

Admitted

—

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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