ISCR Case 13-01220.h1

Case Headnote

ISCR Case No. 13-01220.h1

grantedMay 15, 2014· Hon. Rita C. O'Brien· hearing

Summary

A 40-year-old high school graduate and defense contractor foreman was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). These concerns arose from a history of delinquent debts, including a mortgage past due by $79,252, a $306 collection agency debt, and two $413 medical debts for his daughter, which he believed were duplicates. Additional debts included a $286 collection agency debt, a $150 debt, and a $120 traffic fine.

The applicant demonstrated a commitment to resolving these obligations. He contacted the collection agency for the $306 debt, established a three-installment payment plan for one of the $413 medical debts, and fully paid the $286 collection debt. He also located the creditor and fully paid the $150 debt, and provided documentation showing full payment of the $120 traffic fine through three $40 installments.

The decision to grant the clearance was based on several mitigating factors. The applicant's financial difficulties were attributed to circumstances beyond his control, specifically job loss and medical issues. He made good-faith efforts to repay creditors and resolve debts, including establishing payment plans and fully paying several obligations. Ultimately, his current financial situation was not deemed to cast doubt on his reliability, trustworthiness, or judgment.

Why the Applicant Prevailed

The applicant's financial difficulties were primarily due to circumstances beyond his control, including job loss and medical issues.
He has made a good-faith effort to repay overdue creditors and resolve debts, including setting up payment plans and paying off several debts.
The applicant's current financial situation does not cast doubt on his reliability, trustworthiness, or judgment.

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(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“A security clearance decision is intended only to resolve the questions of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedDec 6, 2013
Answer filed—
Hearing heldApr 23, 2014
Decision dateMay 15, 2014

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Debts as a Mitigating Factor
Consideration of the Whole Person Concept in Security Clearance Decisions

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	specific text not stated in this decision	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant's credit report shows he was past due $79,252 on the mortgage $79,252	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.c	Applicant has contacted the collection agency that holds this $306 debt. However, as of the hearing date, the debt was not paid. $306	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Other
1.d	Applicant believes that these two medical debts of $413 each for treatment for his daughter are duplicates. He has established a plan to pay $413 in three installments. $413	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.e	Applicant believes that these two medical debts of $413 each for treatment for his daughter are duplicates. He has established a plan to pay $413 in three installments. $413	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.f	Applicant contacted the collection agency and arranged payment of this debt of $286. He has paid it in full. $286	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.g	When Applicant originally attempted to pay this $150 debt, he had difficulty locating the agency that currently held it. He has located the creditor and paid the debt in full. $150	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.h	This $120 debt relates to a traffic fine. Applicant provided documentation showing he made three payments of $40 each, and the debt is paid in full. $120	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Admitted

—

1.b

Applicant's credit report shows he was past due $79,252 on the mortgage

$79,252

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Claimed

Other

1.c

Applicant has contacted the collection agency that holds this $306 debt. However, as of the hearing date, the debt was not paid.

$306

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Other

1.d

Applicant believes that these two medical debts of $413 each for treatment for his daughter are duplicates. He has established a plan to pay $413 in three installments.

$413

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.e

Applicant believes that these two medical debts of $413 each for treatment for his daughter are duplicates. He has established a plan to pay $413 in three installments.

$413

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.f

Applicant contacted the collection agency and arranged payment of this debt of $286. He has paid it in full.

$286

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.g

When Applicant originally attempted to pay this $150 debt, he had difficulty locating the agency that currently held it. He has located the creditor and paid the debt in full.

$150

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.h

This $120 debt relates to a traffic fine. Applicant provided documentation showing he made three payments of $40 each, and the debt is paid in full.

$120

For Applicant

Unspecified Financial

Admitted

—

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 ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES