ISCR Case 13-01058.h1

Case Headnote

ISCR Case No. 13-01058.h1

grantedMar 27, 2014· Hon. Robert Robinson Gales· hearing

Summary

A 63-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from a divorce and a period of unemployment.

Specific allegations included an unresolved $102 automobile rental insurance debt, which his former employer refused to pay. Additionally, there were several bank credit card accounts. One account, with a $3,200 credit limit, resulted in a $4,015 default judgment in October 2012, but was settled for $2,800 in October 2013, with a Satisfaction of Judgment filed in November 2013. Another bank credit card account, which led to a $1,974 judgment in September 2010, was also resolved in October 2013 with a Satisfaction of Judgment. Three other bank credit card accounts, with credit limits of $2,500, $1,000, and $1,000 respectively, were charged off, and their resolution remained unclear. Finally, a $754.53 regional hospital medical account, attributed to his former employer's bankrupt insurance, was fully paid by August 2013.

The clearance was granted because the applicant admitted to his financial difficulties and provided evidence of proactive efforts to resolve his debts. He settled multiple accounts and demonstrated a commitment to addressing his financial obligations, with many issues attributed to circumstances beyond his control, such as unemployment and medical expenses.

Why the Applicant Prevailed

The applicant admitted to financial difficulties but provided evidence of efforts to resolve debts.
He settled multiple accounts and demonstrated a commitment to addressing his financial obligations.
The applicant's financial issues were largely attributed to circumstances beyond his control, such as unemployment and medical expenses.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Creditors

Key Rule Quoted

“Eligibility for a security clearance and access to classified information is granted.”

Procedural Posture

SOR issuedOct 22, 2013
Answer filedNov 12, 2013Applicant elected to proceed without a hearing.
Hearing held—Case decided on the written record.
Decision dateMar 27, 2014

Cite For

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

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	There is an account with an automobile rental company in the amount of $102 for automobile insurance that Applicant’s former employer (the bankrupt airline), after the fact, refused to pay. Applicant explained his predicament to the creditor and even offered to settle the account for 50 percent, but the creditor refused. The account is not listed in either of the 2013 credit reports, and while it is well-settled that adverse information from a credit report can normally meet the substantial evidence standard and the government’s obligations under ¶ E3.1.14 of the Directive for pertinent allegations, the absence of any such credit report adverse information should be considered in a positive light. Furthermore, the source of the allegation is unclear. Nevertheless, it appears that this account has not yet been resolved. $102	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	There is a bank credit card account with a credit limit of $3,200 and high credit of $3,807 that was acquired by a larger bank and subsequently placed for collection before it was sold to a debt purchaser. In October 2012, that debt purchaser obtained a default judgment against Applicant in the amount of $4,015. In September 2013, the debt purchaser offered to settle the account for $2,800, and on October 7, 2013, Applicant’s attorney forwarded a check in that amount to the debt purchaser. On November 6, 2013, a Satisfaction of Judgment was filed in the court, and any cause of action against Applicant was waived and discontinued with prejudice. The account has been resolved. $4,015	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	There is a bank credit card account with an unspecified credit limit or high credit that was placed for collection before it went to judgment against Applicant in the amount of $1,974 in September 2010. In September 2013, Applicant’s attorney forwarded a check to the creditor, and on October 2, 2013, a Satisfaction of Judgment was filed in the court, announcing that the judgment had been 'wholly satisfied.' The account has been resolved. $1,974	For Applicant	Credit Card Debt	Unknown	—	—	—
1.d	There is a bank credit card account with a credit limit of $2,500 and high credit of $2,555 that was past due $2,653 when it was placed for collection and charged off. Applicant contends the account was closed and settled for less than the full amount, but it is unclear if he had submitted any documentation to support that there was a settlement for any amount, or that there were any payments made. It remains unclear if the account has been resolved. $2,653	For Applicant	Credit Card Debt	Admitted	—	—	—
1.e	There is a bank credit card account with a credit limit of $1,000 and high credit of $1,219 that was past due $1,259 when it was placed for collection and charged off. Applicant contends the account was closed and settled for less than the full amount, but it is unclear if he had submitted any documentation to support that there was a settlement for any amount, or that there were any payments made. It remains unclear if the account has been resolved. $1,259	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	There is a bank credit card account with a credit limit of $1,000 and high credit of $1,233 that was past due $1,556 when it was placed for collection and charged off. Applicant contends the account was closed and settled for less than the full amount, but it is unclear if he had submitted any documentation to support that there was a settlement for any amount, or that there were any payments made. It remains unclear if the account has been resolved. $1,556	For Applicant	Credit Card Debt	Admitted	—	—	—
1.g	There is a regional hospital medical account with a past-due balance of $754.53 that was placed for collection in March 2013. Applicant attributed the unpaid balance to the fact that his former bankrupt employer’s insurance failed to cover the medical procedures he received. Applicant paid the collection attorney $100 on May 28, 2013, and $754.53 on August 16, 2013. He received a refund of $100 in September 2013. The account has been resolved. $754	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

There is an account with an automobile rental company in the amount of $102 for automobile insurance that Applicant’s former employer (the bankrupt airline), after the fact, refused to pay. Applicant explained his predicament to the creditor and even offered to settle the account for 50 percent, but the creditor refused. The account is not listed in either of the 2013 credit reports, and while it is well-settled that adverse information from a credit report can normally meet the substantial evidence standard and the government’s obligations under ¶ E3.1.14 of the Directive for pertinent allegations, the absence of any such credit report adverse information should be considered in a positive light. Furthermore, the source of the allegation is unclear. Nevertheless, it appears that this account has not yet been resolved.

$102

For Applicant

Unspecified Financial

Denied

—

1.b

There is a bank credit card account with a credit limit of $3,200 and high credit of $3,807 that was acquired by a larger bank and subsequently placed for collection before it was sold to a debt purchaser. In October 2012, that debt purchaser obtained a default judgment against Applicant in the amount of $4,015. In September 2013, the debt purchaser offered to settle the account for $2,800, and on October 7, 2013, Applicant’s attorney forwarded a check in that amount to the debt purchaser. On November 6, 2013, a Satisfaction of Judgment was filed in the court, and any cause of action against Applicant was waived and discontinued with prejudice. The account has been resolved.

$4,015

For Applicant

Credit Card Debt

Admitted

—

1.c

There is a bank credit card account with an unspecified credit limit or high credit that was placed for collection before it went to judgment against Applicant in the amount of $1,974 in September 2010. In September 2013, Applicant’s attorney forwarded a check to the creditor, and on October 2, 2013, a Satisfaction of Judgment was filed in the court, announcing that the judgment had been 'wholly satisfied.' The account has been resolved.

$1,974

For Applicant

Credit Card Debt

Unknown

—

1.d

There is a bank credit card account with a credit limit of $2,500 and high credit of $2,555 that was past due $2,653 when it was placed for collection and charged off. Applicant contends the account was closed and settled for less than the full amount, but it is unclear if he had submitted any documentation to support that there was a settlement for any amount, or that there were any payments made. It remains unclear if the account has been resolved.

$2,653

For Applicant

Credit Card Debt

Admitted

—

1.e

There is a bank credit card account with a credit limit of $1,000 and high credit of $1,219 that was past due $1,259 when it was placed for collection and charged off. Applicant contends the account was closed and settled for less than the full amount, but it is unclear if he had submitted any documentation to support that there was a settlement for any amount, or that there were any payments made. It remains unclear if the account has been resolved.

$1,259

For Applicant

Credit Card Debt

Admitted

—

1.f

There is a bank credit card account with a credit limit of $1,000 and high credit of $1,233 that was past due $1,556 when it was placed for collection and charged off. Applicant contends the account was closed and settled for less than the full amount, but it is unclear if he had submitted any documentation to support that there was a settlement for any amount, or that there were any payments made. It remains unclear if the account has been resolved.

$1,556

For Applicant

Credit Card Debt

Admitted

—

1.g

There is a regional hospital medical account with a past-due balance of $754.53 that was placed for collection in March 2013. Applicant attributed the unpaid balance to the fact that his former bankrupt employer’s insurance failed to cover the medical procedures he received. Applicant paid the collection attorney $100 on May 28, 2013, and $754.53 on August 16, 2013. He received a refund of $100 in September 2013. The account has been resolved.

$754

For Applicant

Medical Debt

Admitted

—

Loading case…

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