ISCR Case 10-01762.h1

Case Headnote

ISCR Case No. 10-01762.h1

grantedAug 23, 2011· Hon. Mary E. Henry· hearing

Summary

A 61-year-old security officer for a Department of Defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant successfully mitigated these concerns by resolving multiple outstanding debts and demonstrating improved financial management.

Specifically, she settled a $1,130 debt, making her first payment in April 2011, with the creditor confirming full payment by April 28, 2011. An $8,200 charged-off automobile loan from 2004 was resolved when a collection company closed the account and showed a zero balance after the applicant cited a state statute of limitations. She also fully paid a $1,328 medical bill by June 21, 2011, and satisfied a $2,320 debt with another creditor by July 19, 2011. Additionally, the remaining balance on an $814 debt was paid on July 15, 2011. A car loan defaulted in 2008 resulted in repossession and a deficiency balance.

The clearance was granted because the applicant resolved her debts, demonstrating a good-faith effort to manage her finances. Her financial issues were attributed to circumstances beyond her control, such as low-paying jobs and unemployment, and she now maintains a stable income exceeding her expenses, allowing for retirement savings.

Why the Applicant Prevailed

The applicant resolved multiple debts listed in the SOR, demonstrating a good-faith effort to manage her finances.
She has a stable income that exceeds her monthly expenses, allowing her to save for retirement.
The applicant's financial issues were largely attributed to circumstances beyond her control, including low-paying jobs and unemployment.

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)rejectedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Counseling or Indications of Control Over the Problem
AG ¶ 20(d)appliedGood-faith Effort to Repay or Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedApr 1, 2011Details security concerns under Guideline F.
Answer filedApr 28, 2011Applicant requested a decision on the written record.
Hearing held—Decision made based on written record.
Decision dateAug 23, 2011

Cite For

Mitigation of Financial Issues Under Guideline F
Demonstrating Good-faith Efforts to Resolve Debts
Consideration of Circumstances Beyond the Applicant's Control in Financial Matters

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	Applicant negotiated a settlement of the $1,130 debt in allegation 1.a and developed a payment plan as verified by a letter dated April 21, 2011. She made her first payment on April 25, 2011, and on April 28, 2011, the creditor issued a letter indicating the debt had been paid in full. $1,130	For Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.b	Applicant defaulted on the loan in 2008. The creditor repossessed the car in September 2008 and sold the car. By letter dated October 24, 2008, the creditor notified Applicant that the car had been sold and advised of her of a deficiency balance.	For Applicant	Auto Loan Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.c	The $8,200 debt in SOR allegation 1.c concerns a 2004 charged off automobile loan. The original creditor sold the account to a collection company. In March or April 2011, Applicant wrote to the collection company, asking that this debt be removed from her credit report in accordance with state law. In response to Applicant’s letter containing information on the state four-year statute of limitations law, the credit collection company closed the account and showed a balance due of zero. $8,200	For Applicant	Auto Loan Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.d	Applicant negotiated a three-month payment plan for the $1,328 medical bill listed in allegation 1.d. She fully paid her debt by June 21, 2011. $1,328	For Applicant	Medical Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.e	She provided a letter dated July 19, 2011 from the creditor in allegation 1.e ($2,320). The letter verified that she had satisfied all her debts with this creditor. $2,320	For Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.f	Finally, Applicant paid the remaining balance on the $814 debt listed in allegation 1.f on July 15, 2011. $814	For Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant negotiated a settlement of the $1,130 debt in allegation 1.a and developed a payment plan as verified by a letter dated April 21, 2011. She made her first payment on April 25, 2011, and on April 28, 2011, the creditor issued a letter indicating the debt had been paid in full.

$1,130

For Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

Credited

Debt Paid in Full

1.b

Applicant defaulted on the loan in 2008. The creditor repossessed the car in September 2008 and sold the car. By letter dated October 24, 2008, the creditor notified Applicant that the car had been sold and advised of her of a deficiency balance.

For Applicant

Auto Loan Debt

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.c

The $8,200 debt in SOR allegation 1.c concerns a 2004 charged off automobile loan. The original creditor sold the account to a collection company. In March or April 2011, Applicant wrote to the collection company, asking that this debt be removed from her credit report in accordance with state law. In response to Applicant’s letter containing information on the state four-year statute of limitations law, the credit collection company closed the account and showed a balance due of zero.

$8,200

For Applicant

Auto Loan Debt

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.d

Applicant negotiated a three-month payment plan for the $1,328 medical bill listed in allegation 1.d. She fully paid her debt by June 21, 2011.

$1,328

For Applicant

Medical Debt

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

Credited

Debt Paid in Full

1.e

She provided a letter dated July 19, 2011 from the creditor in allegation 1.e ($2,320). The letter verified that she had satisfied all her debts with this creditor.

$2,320

For Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

Credited

Debt Paid in Full

1.f

Finally, Applicant paid the remaining balance on the $814 debt listed in allegation 1.f on July 15, 2011.

$814

For Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

Credited

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