ISCR Case 12-11067.h1

Case Headnote

ISCR Case No. 12-11067.h1

deniedDec 31, 2015· Hon. Robert Robinson Gales· hearing

Summary

A 32-year-old single mother was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved delinquent accounts totaling approximately $42,151. Her financial difficulties began in 2007 and were deemed ongoing, with insufficient mitigation efforts.

The Statement of Reasons detailed several specific financial issues. These included a bank line of credit with a $2,403 high credit, resulting in a $2,443 judgment in 2009, and a medical account with an unpaid balance of $386. Two student loans were also cited: one, originally $31,474.73, became delinquent in August 2008, with a past-due balance of $17,387 by April 2015, and $21,106 eventually charged off. The second student loan, opened in January 2010, became delinquent in December 2014, with a past-due balance of $407 by April 2015. Additionally, a national clothing store account with a $200 credit limit was charged off for $710, later increasing to $887.

Two cellular telephone accounts, opened by the applicant for relatives, also became delinquent, with past-due balances of approximately $1,572 and $341, respectively. The denial was based on the applicant admitting to all allegations, the persistence of her financial problems since 2007, and her failure to provide sufficient evidence of debt resolution or control over her financial situation.

Why the Applicant Was Denied

The applicant admitted to all allegations of financial difficulties in the SOR.
The applicant's financial problems have persisted since 2007, indicating a lack of control over her financial situation.
The applicant failed to provide sufficient evidence of efforts to resolve her debts or to demonstrate that her financial issues were under control.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)raisedConditions Largely Beyond the Person's ControlThe applicant attributed her financial problems to periods of unemployment.
AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues have been ongoing since 2007.
AG ¶ 20(c)rejectedEvidence of Counseling or Resolution EffortsThe applicant did not provide evidence of effective counseling or resolution of her debts.
AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant's efforts to negotiate payments were insufficient and unverified.

Key Rule Quoted

“"Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information."”

Procedural Posture

SOR issuedJul 16, 2015
Answer filedAug 29, 2015Applicant elected for a written record decision.
Hearing held—No hearing; decision based on written record.
Decision dateDec 31, 2015

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Impact of Ongoing Financial Difficulties on Security Clearance Eligibility
Insufficient Evidence of Debt Resolution Efforts Leading to Denial of Clearance.

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	This is a $2,000 bank line of credit with a high credit of $2,403 that was placed for collection and charged off in 2008. A subsequent law suit was filed against Applicant, and a judgment in the amount of $2,443 was entered in 2009. $2,443	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This is a medical account with an unpaid balance of $386 that was placed for collection in August 2012. $386	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	One such loan, opened with SallieMae, now known as Navient, in December 2004 in the original amount of $31,474.73, became delinquent in August 2008. By August 2014, the unpaid balance had increased to $34,895, and the amount past due was $15,740. By April 2015, the unpaid balance had increased to $36,113, with a past-due balance of $17,387. The creditor eventually charged off $21,106. $21,106	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	This is a national clothing store charge account with a credit limit of $200 that was placed for collection and charged off for $710 in March 2011. The account was sold to another lender, identified in the SOR. The debt purchaser increased the past-due balance to $887. $887	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	The SOR also alleged a separate student loan, opened in January 2010 (approximately five years after Applicant had already received her degree) with a high credit of $31,474 that became delinquent in December 2014. By April 2015, the unpaid balance had increased to $34,251, with a past-due balance of $407. By November 2015, the unpaid balance had increased to $34,967, with a zero past-due balance. $34,967	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	This is a cellular telephone account that Applicant opened in her name for the benefit of her aunt and two cousins. At some point, they failed or refused to pay their share of the expenses and the account, with a past-due balance of approximately $1,572, became over 120 days past due, and was placed for collection. $1,572	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	This is another cellular telephone account that Applicant opened in her name for the benefit of her cousin. At some point, her cousin failed or refused to pay her share of the expenses and the account, with a past-due balance of approximately $341, became over 120 days past due, and was placed for collection. $341	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a $2,000 bank line of credit with a high credit of $2,403 that was placed for collection and charged off in 2008. A subsequent law suit was filed against Applicant, and a judgment in the amount of $2,443 was entered in 2009.

$2,443

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This is a medical account with an unpaid balance of $386 that was placed for collection in August 2012.

$386

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

One such loan, opened with SallieMae, now known as Navient, in December 2004 in the original amount of $31,474.73, became delinquent in August 2008. By August 2014, the unpaid balance had increased to $34,895, and the amount past due was $15,740. By April 2015, the unpaid balance had increased to $36,113, with a past-due balance of $17,387. The creditor eventually charged off $21,106.

$21,106

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

This is a national clothing store charge account with a credit limit of $200 that was placed for collection and charged off for $710 in March 2011. The account was sold to another lender, identified in the SOR. The debt purchaser increased the past-due balance to $887.

$887

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

The SOR also alleged a separate student loan, opened in January 2010 (approximately five years after Applicant had already received her degree) with a high credit of $31,474 that became delinquent in December 2014. By April 2015, the unpaid balance had increased to $34,251, with a past-due balance of $407. By November 2015, the unpaid balance had increased to $34,967, with a zero past-due balance.

$34,967

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

This is a cellular telephone account that Applicant opened in her name for the benefit of her aunt and two cousins. At some point, they failed or refused to pay their share of the expenses and the account, with a past-due balance of approximately $1,572, became over 120 days past due, and was placed for collection.

$1,572

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

This is another cellular telephone account that Applicant opened in her name for the benefit of her cousin. At some point, her cousin failed or refused to pay her share of the expenses and the account, with a past-due balance of approximately $341, became over 120 days past due, and was placed for collection.

$341

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Loading case…

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

FOOTNOTES