ISCR Case 12-09757.h1

Case Headnote

ISCR Case No. 12-09757.h1

grantedDec 30, 2015· Hon. Mark W. Harvey· hearing

Summary

A 37-year-old engineer for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding unresolved debts totaling $32,016, which had been reduced to $6,418 at the time of the decision.

The applicant demonstrated significant efforts to resolve her financial issues. She paid $4,000 to resolve a $7,922 collection account and resolved another $7,355 collection account that she believed was a duplicate. She made multiple payments on a $2,722 charged-off bank debt, paid a $929 collection account, and resolved a $606 bank debt. Additionally, she settled a $4,147 collection account for $2,448, paid a $558 collection account, and paid $735 for six parking tickets owed to a local government entity. Another $622 collection account was marked "Charged Off, Paid in Full."

While three judgments totaling $4,356 for rent remained from a corporation no longer in active business, and a $2,062 collection account was unrecognized with no response to information requests, the judge found the financial concerns mitigated. The applicant established a track record of timely payments and financial responsibility, and positive character references supported her reliability. As a result, the security clearance was granted.

Why the Applicant Prevailed

The applicant resolved most of her debts and is actively working on the remaining debts.
She established a track record of timely debt payments and financial responsibility.
Positive character references supported her 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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 20, 2015
Answer filedFeb 23, 2015
Hearing heldOct 19, 2015
Decision dateDec 30, 2015

Cite For

Mitigation of Financial Concerns Under Guideline F
Demonstrating a Good-faith Effort to Resolve Debts
Whole-person Analysis in Security Clearance Determinations

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 is a collection account originating from a bank for $7,922. On February 6, 2015, Applicant paid $4,000 resolving this debt. $7,922	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	SOR ¶ 1.b is a collection account originating from a bank for $7,355. She believed the debts in SOR ¶¶ 1.a and 1.b were duplications of each other. On October 22, 2015, the collection company wrote that the account has a zero balance. $7,355	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	SOR ¶ 1.c is a charged-off bank debt for $2,722. On February 7, 2015, March 9, 2015, and April 7, 2015, Applicant made $454 payments to the creditor. Applicant said the debt was paid. $2,722	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	SOR ¶ 1.d is a collection account originating from a bank for $929. On October 13, 2015, the collection company wrote thanking Applicant for her payment and stating the account had a zero balance. The status of the account is 'satisfied.' $929	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	SOR ¶ 1.e is a collection account originating from a bank for $606. On February 9, 2015, the bank wrote that the debt was paid, and the account had a zero balance. $606	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	SOR ¶ 1.f through 1.h are three judgments filed in 2009, which are owed to a corporation and total $4,356 for rent in 2008-2009. The creditor has gone out of active business. $4,356	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Other
1.i	SOR ¶ 1.i is a collection account originating from a bank for $4,147. On November 17, 2015, Applicant paid the settlement amount of $2,448. $4,147	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j	SOR ¶ 1.j is a collection account originating from a bank for $558. On November 17, 2015, Applicant paid the creditor $558 resolving the debt. $558	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.k	SOR ¶ 1.k is a collection account originating from a bank for $2,062. Applicant did not recognize the account. She did not receive a response to her request for information, and she believed the company might be out of business. $2,062	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.l	SOR ¶ 1.l through 1.q are six debts totaling $735 owed to a local government entity for parking tickets. On February 6, 2015, Applicant paid her debt to the local government entity. $735	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m–1.q	5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.r	SOR ¶ 1.r is a collection account originating from a bank for $622. On November 18, 2015, the creditor wrote that the credit reporting companies would be notified that the status of the account would be changed to 'Charged Off, Paid in Full.' $622	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (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

SOR ¶ 1.a is a collection account originating from a bank for $7,922. On February 6, 2015, Applicant paid $4,000 resolving this debt.

$7,922

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.b

SOR ¶ 1.b is a collection account originating from a bank for $7,355. She believed the debts in SOR ¶¶ 1.a and 1.b were duplications of each other. On October 22, 2015, the collection company wrote that the account has a zero balance.

$7,355

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c is a charged-off bank debt for $2,722. On February 7, 2015, March 9, 2015, and April 7, 2015, Applicant made $454 payments to the creditor. Applicant said the debt was paid.

$2,722

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.d

SOR ¶ 1.d is a collection account originating from a bank for $929. On October 13, 2015, the collection company wrote thanking Applicant for her payment and stating the account had a zero balance. The status of the account is 'satisfied.'

$929

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.e

SOR ¶ 1.e is a collection account originating from a bank for $606. On February 9, 2015, the bank wrote that the debt was paid, and the account had a zero balance.

$606

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.f

SOR ¶ 1.f through 1.h are three judgments filed in 2009, which are owed to a corporation and total $4,356 for rent in 2008-2009. The creditor has gone out of active business.

$4,356

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Other

1.i

SOR ¶ 1.i is a collection account originating from a bank for $4,147. On November 17, 2015, Applicant paid the settlement amount of $2,448.

$4,147

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.j

SOR ¶ 1.j is a collection account originating from a bank for $558. On November 17, 2015, Applicant paid the creditor $558 resolving the debt.

$558

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.k

SOR ¶ 1.k is a collection account originating from a bank for $2,062. Applicant did not recognize the account. She did not receive a response to her request for information, and she believed the company might be out of business.

$2,062

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.l

SOR ¶ 1.l through 1.q are six debts totaling $735 owed to a local government entity for parking tickets. On February 6, 2015, Applicant paid her debt to the local government entity.

$735

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.m–1.q

5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.r

SOR ¶ 1.r is a collection account originating from a bank for $622. On November 18, 2015, the creditor wrote that the credit reporting companies would be notified that the status of the account would be changed to 'Charged Off, Paid in Full.'

$622

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

(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