ISCR Case 14-00180.h1

Case Headnote

ISCR Case No. 14-00180.h1

grantedOct 15, 2014· Hon. Paul J. Mason· hearing

Summary

A 39-year-old systems administrator and Marine Corps veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 18 delinquent accounts totaling approximately $8,000. These included an automobile loan, several collection accounts for a musical arts center, an insect spray manufacturer, and credit cards, as well as a cellular phone bill and car insurance. One $800 judgment from August 2007, related to a landscaping proposal, remained unpaid.

The applicant demonstrated significant mitigation efforts. He successfully obtained a loan modification that reduced his mortgage payment, which enabled him to address his outstanding debts. He subsequently resolved most of his delinquent accounts between April and May 2014, including settling an automobile loan for $1,717, a musical arts center collection for $1,163, an insect spray manufacturer collection for $230, and a credit card collection for $435. He also paid a $200 unknown account, settled a $1,011 cellular phone account for $700, settled a $566 credit card account, and paid a $290 car insurance account.

The judge found that the applicant’s proactive measures, including resolving nearly all delinquent accounts and implementing direct payment plans and a financial budget, demonstrated responsible financial management and a commitment to improving his financial situation. These actions mitigated the financial concerns, leading to the granting of his security clearance.

Why the Applicant Prevailed

The applicant obtained a loan modification that significantly reduced his mortgage payment, allowing him to address his debts.
He resolved nearly all delinquent accounts, demonstrating responsible financial management.
The applicant implemented direct payment plans and a financial budget to prevent future issues.

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)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control and the Individual Acted Responsibly Under the Circumstances
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“An individual’s financial obligations to his creditors are generally personal matters unless the evidence indicates that the individual is not repaying his debts as agreed.”

Procedural Posture

SOR issuedMar 13, 2014
Answer filedMay 19, 2014Notarized
Hearing heldSep 4, 2014
Decision dateOct 15, 2014

Cite For

Mitigation of Financial Concerns Under Guideline F
Responsible Financial Management Leading to Resolution of Debts
Application of 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	$1,717, automobile installment loan. The debt was reported delinquent in December 2012. On April 25, 2014, documentation verifies Applicant settled the installment loan debt for his 2003 automobile. $1,717	For Applicant	Auto Loan 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 Debt Paid in Full
1.b	$1,163, collection account with the original creditor being a musical arts center. On May 5, 2014, Applicant was advised by letter that the collection agency records showed the account was settled. $1,163	For Applicant	Unspecified Financial	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 Debt Paid in Full
1.c	$230, collection account showing the original creditor is an insect spray manufacturer. On May 6, 2014, Applicant was advised by letter the account was settled. $230	For Applicant	Unspecified Financial	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 Debt Paid in Full
1.d	$435, credit card, collection account. The account was transferred for collection in June 2010. On May 14, 2014, the collection agency advised Applicant by letter that this account was settled. $435	For Applicant	Credit Card 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 Debt Paid in Full
1.e	$200, unknown type of account. The account became delinquent in August 2010. On April 25, 2014, Applicant was notified by email that the account was paid. $200	For Applicant	Unspecified Financial	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 Debt Paid in Full
1.f	$800 judgment filed against Applicant in August 2007. The landscaping proposal, dated April 24, 2006, identifies Applicant’s wife and the address where he and his wife have lived since 2000. Though Applicant’s signature does not appear on the proposal, his name must appear on the judgment to explain why the judgment appears in his credit report. SOR 1.f has not been paid. $800	Against Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	$1,011, cellular phone, collection account. The debt was transferred for collection in March 2012. On May 1, 2014, documentation reflects that Applicant settled the account for $700. $1,011	For Applicant	Unspecified Financial	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 Debt Paid in Full
1.h	$566, credit card, collection account. The account became delinquent in December 2012. On May 6, 2014, the creditor notified Applicant that his final payment on the settled the account. $566	For Applicant	Credit Card 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 Debt Paid in Full
1.i–1.k	3 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.l	$290, car insurance. The account became delinquent in October 2012. Applicant’s documentation shows he paid the account on May 2, 2014. $290	For Applicant	Unspecified Financial	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 Debt Paid in Full
1.m–1.s	7 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$1,717, automobile installment loan. The debt was reported delinquent in December 2012. On April 25, 2014, documentation verifies Applicant settled the installment loan debt for his 2003 automobile.

$1,717

For Applicant

Auto Loan 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

Debt Paid in Full

1.b

$1,163, collection account with the original creditor being a musical arts center. On May 5, 2014, Applicant was advised by letter that the collection agency records showed the account was settled.

$1,163

For Applicant

Unspecified Financial

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

Debt Paid in Full

1.c

$230, collection account showing the original creditor is an insect spray manufacturer. On May 6, 2014, Applicant was advised by letter the account was settled.

$230

For Applicant

Unspecified Financial

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

Debt Paid in Full

1.d

$435, credit card, collection account. The account was transferred for collection in June 2010. On May 14, 2014, the collection agency advised Applicant by letter that this account was settled.

$435

For Applicant

Credit Card 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

Debt Paid in Full

1.e

$200, unknown type of account. The account became delinquent in August 2010. On April 25, 2014, Applicant was notified by email that the account was paid.

$200

For Applicant

Unspecified Financial

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

Debt Paid in Full

1.f

$800 judgment filed against Applicant in August 2007. The landscaping proposal, dated April 24, 2006, identifies Applicant’s wife and the address where he and his wife have lived since 2000. Though Applicant’s signature does not appear on the proposal, his name must appear on the judgment to explain why the judgment appears in his credit report. SOR 1.f has not been paid.

$800

Against Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

$1,011, cellular phone, collection account. The debt was transferred for collection in March 2012. On May 1, 2014, documentation reflects that Applicant settled the account for $700.

$1,011

For Applicant

Unspecified Financial

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

Debt Paid in Full

1.h

$566, credit card, collection account. The account became delinquent in December 2012. On May 6, 2014, the creditor notified Applicant that his final payment on the settled the account.

$566

For Applicant

Credit Card 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

Debt Paid in Full

1.i–1.k

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

For Applicant

—

1.l

$290, car insurance. The account became delinquent in October 2012. Applicant’s documentation shows he paid the account on May 2, 2014.

$290

For Applicant

Unspecified Financial

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

Debt Paid in Full

1.m–1.s

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

For Applicant

—

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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