ISCR Case 14-01238.h1

Case Headnote

ISCR Case No. 14-01238.h1

deniedMar 27, 2015· Hon. Robert Robinson Gales· hearing

Summary

A 30-year-old administrative assistant for a defense contractor was denied a security clearance due to unresolved financial issues under Guideline F (Financial Considerations). The applicant had multiple delinquent debts totaling approximately $17,844, with a history of financial difficulties dating back to 2005 or 2006.

Specific allegations included a bank credit card account opened in 2004, charged off for $4,547, and a cable account with an unpaid balance of $288 or $289. A student loan account, opened in 2009, defaulted in November 2010, with an outstanding balance of $2,079 plus interest as of May 2014. Additionally, a judgment for $1,033 was obtained against the applicant in January 2007 by an apartment management company. Three accounts arose from the applicant and her mother failing to pay rent for apartments they vacated early, including one account placed for collection with an unpaid balance of $3,482. Two medical accounts from 2012, with unpaid balances of $337 and $160, were also placed for collection.

Despite acknowledging some debts and promising to address them, the applicant failed to provide documentation of any payments, repayment plans, or evidence of financial counseling. Consequently, the security clearance was denied, as the applicant did not mitigate the security concerns.

Why the Applicant Was Denied

The applicant failed to mitigate security concerns regarding financial considerations.
The applicant had a long-standing history of financial difficulties dating back to 2005 or 2006.
The applicant did not provide evidence of resolving her debts or receiving financial counseling.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant minimally demonstrated a good-faith effort to resolve one debt.

Key Rule Quoted

“"Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information."”

Procedural Posture

SOR issuedMay 13, 2014
Answer filedJun 14, 2014Applicant elected to have the case decided on the written record.
Hearing held—No hearing; case decided on the written record.
Decision dateMar 27, 2015

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues
Failure to Provide Evidence of Debt Resolution
Long-standing Financial Difficulties Impacting Security Clearance Eligibility

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 a bank credit card which was opened in 2004 with a high credit of $3,500 that became delinquent in 2006, was placed for collection, charged off in the amount of $4,547, and then transferred or sold to another lender. $4,547	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	There is a cable account with an unpaid balance of $288 or $289 that was placed for collection in July 2011. $289	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	There is a student loan account in the amount of $3,500 that was opened in February 2009, remained in a grace period until May 2009, and entered into a repayment period in February 2010. It went into default in November 2010, and as of May 31, 2014, the outstanding principal balance was $2,079 plus $8 in interest. $2,079	For Applicant	Student Loan Debt	Unknown	—	—	—
1.d	In January 2007, a judgment in the amount of $1,033 was obtained against Applicant from an apartment management company. $1,033	Against Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Three of the accounts arose from the failure of Applicant and her mother, both co-signers on the leases, to pay rent for apartments in which they resided, but apparently left early. $2,503	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant and her mother resided in another apartment from August 2006 until August 2007. The account was placed for collection with the unpaid balance of $3,482, including unpaid rent of $1,600 and late fees. $3,482	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	There is a medical account with an unpaid balance of $337 that arose when Applicant was seen in the emergency room in 2012. The account was not resolved, and it was placed for collection in August 2012. $337	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	There is another medical account with an unpaid balance of $160 that arose when Applicant was involved in an unspecified emergency situation. The account was not resolved, and it was placed for collection in August 2012. $160	Against Applicant	Medical Debt	Unknown	(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

There is a bank credit card which was opened in 2004 with a high credit of $3,500 that became delinquent in 2006, was placed for collection, charged off in the amount of $4,547, and then transferred or sold to another lender.

$4,547

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

There is a cable account with an unpaid balance of $288 or $289 that was placed for collection in July 2011.

$289

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

There is a student loan account in the amount of $3,500 that was opened in February 2009, remained in a grace period until May 2009, and entered into a repayment period in February 2010. It went into default in November 2010, and as of May 31, 2014, the outstanding principal balance was $2,079 plus $8 in interest.

$2,079

For Applicant

Student Loan Debt

Unknown

—

1.d

In January 2007, a judgment in the amount of $1,033 was obtained against Applicant from an apartment management company.

$1,033

Against Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Three of the accounts arose from the failure of Applicant and her mother, both co-signers on the leases, to pay rent for apartments in which they resided, but apparently left early.

$2,503

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant and her mother resided in another apartment from August 2006 until August 2007. The account was placed for collection with the unpaid balance of $3,482, including unpaid rent of $1,600 and late fees.

$3,482

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

There is a medical account with an unpaid balance of $337 that arose when Applicant was seen in the emergency room in 2012. The account was not resolved, and it was placed for collection in August 2012.

$337

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

There is another medical account with an unpaid balance of $160 that arose when Applicant was involved in an unspecified emergency situation. The account was not resolved, and it was placed for collection in August 2012.

$160

Against Applicant

Medical Debt

Unknown

(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