ISCR Case 14-00418.h1

Case Headnote

ISCR Case No. 14-00418.h1

grantedSep 9, 2014· Hon. Carol G. Ricciardello· hearing

Summary

A 44-year-old retired Navy veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). These concerns arose from financial issues attributed to a prolonged divorce and periods of underemployment. The applicant successfully mitigated these issues by actively addressing his debts and demonstrating responsible financial behavior.

Specifically, the applicant resolved several debts, including a $1,147 debt paid through garnishment in November 2013 and a $57 credit union debt for an account he disputed. He also successfully disputed and had deleted from his credit report a $312 telephone service debt, a $76 telephone service debt, and a $4,625 computer company debt. For valid debts, he established repayment plans, making three payments of $100 monthly on an $8,722 vehicle loan and paying $60 monthly on a $7,996 military credit card account. He also intends to dispute a $1,418 credit card debt and resolve a $3,015 car loan for his fiancée’s son, while a $1,174 store credit card debt is under investigation.

The administrative judge found that the applicant made a good-faith effort to resolve his financial obligations, providing documented proof of payments and resolutions, including for disputed debts. The judge concluded that the financial difficulties were largely due to circumstances beyond his control, ultimately granting the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve debts and disputes regarding his financial obligations.
He provided documented proof of payments made and debts resolved, including those disputed as fraudulent.
The applicant's financial difficulties were largely due to circumstances beyond his control, such as underemployment and a lengthy divorce.

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
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedApr 11, 2014
Answer filedMay 1, 2014
Hearing heldAug 21, 2014
Decision dateSep 9, 2014

Cite For

Mitigation of Financial Issues Under Guideline F
Good-faith Efforts to Resolve Debts
Impact of Personal Circumstances on 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	The debt in SOR ¶ 1.a ($1,147) was paid in full through garnishment in November 2013. He provided proof the debt is resolved. $1,147	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	The debt in SOR ¶ 1.b ($312) is for telephone services. Applicant disputed the debt with the credit bureau and it was deleted. $312	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.c	The debt in SOR ¶ 1.c ($8,722) was for a vehicle Applicant purchased before he retired from the Navy. He is now paying $100 a month on the debt. He has made three payments. $8,722	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.d	The debt in SOR ¶ 1.d ($1,418) is on a credit card account. He intends to have the law firm dispute this debt. $1,418	For Applicant	Credit Card Debt	Denied	—	—	—
1.e	The debt in SOR ¶ 1.e ($7,996) is for a military credit card account. He pays $60 each month toward the debt. He provided proof of his actions. $7,996	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	The debt in SOR ¶ 1.f ($57) is for an account with a credit union that Applicant testified he never belonged to. He provided proof it was paid. $57	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	The debt in SOR ¶ 1.g ($3,015) is for a car loan Applicant signed for his fiancée’s son. He intends to resolve it. $3,015	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.h	The debt in SOR ¶ 1.h ($76) is for telephone services. The debt was removed from his credit report. $76	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.i	The debt in SOR ¶ 1.i ($1,174) is for a store credit card. The creditor is investigating the debt. $1,174	For Applicant	Credit Card Debt	Denied	—	—	—
1.j	The debt in SOR ¶ 1.j ($4,625) is for a computer company. The debt was investigated and deleted from Applicant’s credit report. $4,625	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt in SOR ¶ 1.a ($1,147) was paid in full through garnishment in November 2013. He provided proof the debt is resolved.

$1,147

For Applicant

Unspecified Financial

Admitted

—

1.b

The debt in SOR ¶ 1.b ($312) is for telephone services. Applicant disputed the debt with the credit bureau and it was deleted.

$312

For Applicant

Utility or Phone Debt

Admitted

—

1.c

The debt in SOR ¶ 1.c ($8,722) was for a vehicle Applicant purchased before he retired from the Navy. He is now paying $100 a month on the debt. He has made three payments.

$8,722

For Applicant

Auto Loan Debt

Admitted

—

1.d

The debt in SOR ¶ 1.d ($1,418) is on a credit card account. He intends to have the law firm dispute this debt.

$1,418

For Applicant

Credit Card Debt

Denied

—

1.e

The debt in SOR ¶ 1.e ($7,996) is for a military credit card account. He pays $60 each month toward the debt. He provided proof of his actions.

$7,996

For Applicant

Credit Card Debt

Admitted

—

1.f

The debt in SOR ¶ 1.f ($57) is for an account with a credit union that Applicant testified he never belonged to. He provided proof it was paid.

$57

For Applicant

Unspecified Financial

Admitted

—

1.g

The debt in SOR ¶ 1.g ($3,015) is for a car loan Applicant signed for his fiancée’s son. He intends to resolve it.

$3,015

For Applicant

Auto Loan Debt

Admitted

—

1.h

The debt in SOR ¶ 1.h ($76) is for telephone services. The debt was removed from his credit report.

$76

For Applicant

Utility or Phone Debt

Admitted

—

1.i

The debt in SOR ¶ 1.i ($1,174) is for a store credit card. The creditor is investigating the debt.

$1,174

For Applicant

Credit Card Debt

Denied

—

1.j

The debt in SOR ¶ 1.j ($4,625) is for a computer company. The debt was investigated and deleted from Applicant’s credit report.

$4,625

For Applicant

Unspecified Financial

Denied

—

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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