ISCR Case 13-00987.h1

Case Headnote

ISCR Case No. 13-00987.h1

deniedJun 12, 2014· Hon. Paul J. Mason· hearing

Summary

A 38-year-old single male and former U.S. Marine was denied a security clearance under Guideline F (Financial Considerations) due to significant and unresolved financial issues. The applicant faced 16 delinquent debts totaling approximately $72,000, primarily consisting of student loans and credit card balances, along with a condominium foreclosure.

Specific allegations included multiple student loans, some dating back to 2009, with balances ranging from $341 to $8,682, and a consolidated loan totaling $24,086. While some credit reports indicated reduced balances or consolidation for certain student loans, the applicant failed to provide consistent documentation of payments or a clear repayment plan. Other debts, such as a cellular telephone account and an auto loan, also remained unresolved with no supporting payment records. Additionally, two credit card accounts, opened in 1998 and 2008, with balances of $7,724 and $6,325 respectively, lacked documentation of payments.

The applicant's condominium was foreclosed and sold in February 2013, though no deficiency balance was evident. Despite claims of making payments through a credit union and receiving financial counseling, the applicant did not provide sufficient documentation to substantiate these assertions. The denial was based on the lack of a documented payment track record, unsupported claims of financial counseling, and the determination that his financial problems were largely self-inflicted.

Why the Applicant Was Denied

The applicant did not provide a documented track record of payments for the listed debts.
The applicant's claims of financial counseling were unsupported by evidence.
The applicant's financial problems were largely self-inflicted and not due to circumstances beyond his control.

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 That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's accumulation of debt was a voluntary choice.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a meaningful track record of debt repayment.
AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThere was no evidence of financial counseling beyond understanding a credit report.

Key Rule Quoted

“The applicant has the ultimate burden of persuasion of establishing that it is clearly consistent with the national interest to grant him a security clearance.”

Procedural Posture

SOR issuedOct 24, 2013
Answer filedNov 14, 2013
Hearing held—Applicant represented himself.
Decision dateJun 12, 2014

Cite For

Insufficient Evidence of Financial Responsibility Under Guideline F
Impact of Self-inflicted Financial Issues on Security Clearance Eligibility
Burden of Proof on Applicant to Demonstrate Financial Stability

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	$8,682, student loan. The account was opened in 2009 and reported delinquent in July 2013. Applicant’s claim in his response to the FORM that payments were being made through his credit union direct allotment account is undocumented. Account unresolved. $8,682	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	$5,503, student loan. The account was opened in 2011 and reported delinquent in July 2013. On November 6, 2013, Applicant was advised that his proposal to begin making payments of $469 a month, beginning on December 5, 2013, was acceptable. His documentation submitted in his response to the FORM shows a $50 payment to the creditor on March 28, 2014, about seven days after he received the FORM. Applicant’s March 30, 2014, credit report reflects a reduced balance of $4,652, which implies that undocumented payments have also been made to the creditor. $5,503	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	$8,600, student loan. The account was opened in 2009 and reported delinquent in May 2013. There is no supporting documentation of Applicant’s claim that he has been making regular payments since before September 16, 2013. Account unresolved. $8,600	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	$325, cellular telephone account. The account was opened in 2012 and reported delinquent in March 2013. Applicant’s claim in his response to the FORM that he was making payments through his credit union direct allotment account is not supported by the record. Account unresolved. $325	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	$1,749, auto installment loan. The account was opened in 2006 and reported delinquent in July 2013. Applicant’s claim in his response to the FORM that payments were being made through his credit union direct allotment account is undocumented. The balance in Applicant’s credit report dated March 30, 2014, posts the same balance that appears in the government’s August 2, 2013, credit report. Account unresolved. $1,749	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	$8,623, student loan. The account was opened in 2009 and reported delinquent in June 2013. Applicant’s March 2014 credit report reflects that the balance has decreased to $6,788. No documentation was presented to show how many payments have been made or for how long. The reduced account balance connotes that undocumented payments have been made to the creditor. $8,623	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	$341, student loan. The account was opened in 2010 and reported delinquent in July 2013. The government’s August 2013 credit report and Applicant’s March 2014 credit report show the same balance. Applicant claimed the account was paid and provided a telephone number for confirmation. Account is unresolved. $341	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	$19,907, six student loans. The accounts were opened in 2009 and reported delinquent in June 2013. Applicant’s March 2014 credit report reflects that the loans were paid. On November 11, 2013, Applicant signed a federal direct consolidated loan application and promissory note. On the same day, he signed the repayment plan selection to repay the loans. The loans are paid by the organization that services the account (account holder), but Applicant still has to repay the loans. $19,907	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i–1.m	5 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)	Mixed			—	—	—
1.n	$4,179, student loan. The account was opened in 2012 and reported delinquent in July 2013. On November 11, 2013, Applicant signed a federal direct consolidated loan application and promissory note. The same day, he signed a repayment plan selection to repay the loans. The total amount of the seven student loans that were consolidated is $24,086. As with the student loans in SOR 1.h-1.n, the loan is paid by the account holder, but Applicant still has to repay the loan. $4,179	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	$6,325, credit card. The account was opened in 2008 and reported delinquent in May 2010. Applicant’s claim in his response to the FORM that he is making payments through his credit union direct allotment account is not supported by the record. Account is unresolved. $6,325	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	$7,724, credit card. The account was opened in 1998 and reported delinquent in October 2012. In one part of his response to the FORM, he pointed to the August 2013 credit report entries showing the accounts (SOR 1.o, 1.p) having zero balances. The zero balances refer to accounts not listed in the SOR. Applicant’s claim at another location of his response to the FORM that he was making payments through his credit union direction allotment account are unsupported. Account is unresolved. $7,724	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	condominium foreclosure. Applicant’s documentation in his response indicates that the property was sold on February 15, 2013, for $123,400. The certificate of sale was officially witnessed and stamped by the clerk of courts on February 21, 2013. There is no evidence of a deficiency balance on the sale of the condominium. In 2007, Applicant opened an home equity line of credit ($49,000) with the condominium property as collateral. On July 23, 2012, Applicant’s credit line was approved for forgiveness. The forgiven debt is not listed in the SOR.	Against Applicant	Mortgage or Home Loan 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

$8,682, student loan. The account was opened in 2009 and reported delinquent in July 2013. Applicant’s claim in his response to the FORM that payments were being made through his credit union direct allotment account is undocumented. Account unresolved.

$8,682

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

$5,503, student loan. The account was opened in 2011 and reported delinquent in July 2013. On November 6, 2013, Applicant was advised that his proposal to begin making payments of $469 a month, beginning on December 5, 2013, was acceptable. His documentation submitted in his response to the FORM shows a $50 payment to the creditor on March 28, 2014, about seven days after he received the FORM. Applicant’s March 30, 2014, credit report reflects a reduced balance of $4,652, which implies that undocumented payments have also been made to the creditor.

$5,503

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

$8,600, student loan. The account was opened in 2009 and reported delinquent in May 2013. There is no supporting documentation of Applicant’s claim that he has been making regular payments since before September 16, 2013. Account unresolved.

$8,600

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

$325, cellular telephone account. The account was opened in 2012 and reported delinquent in March 2013. Applicant’s claim in his response to the FORM that he was making payments through his credit union direct allotment account is not supported by the record. Account unresolved.

$325

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

$1,749, auto installment loan. The account was opened in 2006 and reported delinquent in July 2013. Applicant’s claim in his response to the FORM that payments were being made through his credit union direct allotment account is undocumented. The balance in Applicant’s credit report dated March 30, 2014, posts the same balance that appears in the government’s August 2, 2013, credit report. Account unresolved.

$1,749

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

$8,623, student loan. The account was opened in 2009 and reported delinquent in June 2013. Applicant’s March 2014 credit report reflects that the balance has decreased to $6,788. No documentation was presented to show how many payments have been made or for how long. The reduced account balance connotes that undocumented payments have been made to the creditor.

$8,623

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

$341, student loan. The account was opened in 2010 and reported delinquent in July 2013. The government’s August 2013 credit report and Applicant’s March 2014 credit report show the same balance. Applicant claimed the account was paid and provided a telephone number for confirmation. Account is unresolved.

$341

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

$19,907, six student loans. The accounts were opened in 2009 and reported delinquent in June 2013. Applicant’s March 2014 credit report reflects that the loans were paid. On November 11, 2013, Applicant signed a federal direct consolidated loan application and promissory note. On the same day, he signed the repayment plan selection to repay the loans. The loans are paid by the organization that services the account (account holder), but Applicant still has to repay the loans.

$19,907

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i–1.m

5 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)

Mixed

—

1.n

$4,179, student loan. The account was opened in 2012 and reported delinquent in July 2013. On November 11, 2013, Applicant signed a federal direct consolidated loan application and promissory note. The same day, he signed a repayment plan selection to repay the loans. The total amount of the seven student loans that were consolidated is $24,086. As with the student loans in SOR 1.h-1.n, the loan is paid by the account holder, but Applicant still has to repay the loan.

$4,179

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

$6,325, credit card. The account was opened in 2008 and reported delinquent in May 2010. Applicant’s claim in his response to the FORM that he is making payments through his credit union direct allotment account is not supported by the record. Account is unresolved.

$6,325

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

$7,724, credit card. The account was opened in 1998 and reported delinquent in October 2012. In one part of his response to the FORM, he pointed to the August 2013 credit report entries showing the accounts (SOR 1.o, 1.p) having zero balances. The zero balances refer to accounts not listed in the SOR. Applicant’s claim at another location of his response to the FORM that he was making payments through his credit union direction allotment account are unsupported. Account is unresolved.

$7,724

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

condominium foreclosure. Applicant’s documentation in his response indicates that the property was sold on February 15, 2013, for $123,400. The certificate of sale was officially witnessed and stamped by the clerk of courts on February 21, 2013. There is no evidence of a deficiency balance on the sale of the condominium. In 2007, Applicant opened an home equity line of credit ($49,000) with the condominium property as collateral. On July 23, 2012, Applicant’s credit line was approved for forgiveness. The forgiven debt is not listed in the SOR.

Against Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

FOOTNOTES