ISCR Case 14-02041.h1

Case Headnote

ISCR Case No. 14-02041.h1

deniedMay 12, 2015· Hon. Richard A. Cefola· hearing

Summary

A 31-year employee of a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant past-due medical debts totaling approximately $2,400. The applicant attributed these financial issues to medical hardships, but the decision found he failed to demonstrate responsible action to address the outstanding debts.

Specific allegations included an $8,152 debt to Creditor A, which was resolved, and a disputed $537 debt to Creditor D, which was not found on a recent credit report. The applicant also had a $567 medical debt to Creditor C, towards which he made a payment, and a $109 medical debt to Creditor I, which he paid. These were found in his favor.

However, the applicant admitted to several other past-due medical debts, including $666 to Creditor B, $1,103 across five debts to Creditor E, $106 to Creditor J, $97 to Creditor K, $64 to Creditor M, and $84 to Creditor P. Despite being given four months to address these, he failed to make sufficient efforts to pay or negotiate them, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has significant past-due debts totaling about $2,400 that he has not credibly addressed.
Despite being given four months to resolve his debts, the applicant failed to make sufficient efforts to pay or negotiate them.
The applicant's financial issues were attributed to medical hardships, but he did not act responsibly under the circumstances.

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)rejectedThe Conditions That Resulted in the Financial Problems Were Beyond the Person's ControlThe applicant failed to act responsibly under the circumstances.
AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not credibly address his past-due debts.

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 issuedOct 2, 2014
Answer filedOct 20, 2014
Hearing heldJan 22, 2015Hearing was continued from December 23, 2014 due to Christmas holidays.
Decision dateMay 12, 2015

Cite For

Failure to Address Significant Past-due Debts Under Guideline F
Insufficient Evidence of Good-faith Efforts to Resolve Financial Obligations
Impact of Financial Considerations on 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	It is alleged that Applicant is indebted to Creditor A for a past-due debt of about $8,152. This debt involves a vehicle that was destroyed in a fire while being serviced at Creditor A’s garage. Applicant has a “Total Balance [of] $0.00” on this debt, as evidenced by a document from Creditor A. $8,152	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant admits that he in indebted to Creditor B for a past-due medical debt in the amount of about $666, as the result of a 2013 surgery. His medical insurance covers 90% of his medical costs. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant. $666	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant admits that he in indebted to Creditor C for a past-due medical debt in the amount of about $567. Applicant made a payment of $136 towards this debt in March of 2015, as evidenced by a credit card statement. I find that he is making a good-faith effort to address this debt; and as such, it is found for Applicant. $567	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.d	It is alleged that Applicant is indebted to Creditor D for a past-due debt of about $537. Applicant disputes this debt as not being his debt. As this does not appear on the Government’s most recent credit report, this allegation is found for Applicant. $537	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant admits that he is indebted to Creditor E for five past-due medical debts totaling about $1,103. Despite having been given four months to do so, Applicant has yet to address these debts; and as such, they are found against Applicant. $1,103	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f–1.h	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.i	Applicant admits that he in indebted to Creditor I for a past-due medical debt in the amount of about $109. Applicant made a payment of $123 towards this debt in March of 2015, as evidenced by a credit card statement. I find that he has paid this debt; and as such, it is found for Applicant. $109	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.j	Applicant admits that he in indebted to Creditor J for a past-due medical debt in the amount of about $106. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant. $106	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant admits that he in indebted to Creditor K for a past-due medical debt in the amount of about $97. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant. $97	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.m	Applicant admits that he in indebted to Creditor M for a past-due medical debt in the amount of about $64. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant. $64	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n–1.o	2 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.p	Applicant admits that he in indebted to Creditor P for a past-due medical debt in the amount of about $84. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant. $84	Against Applicant	Medical Debt	Admitted	(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

It is alleged that Applicant is indebted to Creditor A for a past-due debt of about $8,152. This debt involves a vehicle that was destroyed in a fire while being serviced at Creditor A’s garage. Applicant has a “Total Balance [of] $0.00” on this debt, as evidenced by a document from Creditor A.

$8,152

For Applicant

Unspecified Financial

Denied

—

1.b

Applicant admits that he in indebted to Creditor B for a past-due medical debt in the amount of about $666, as the result of a 2013 surgery. His medical insurance covers 90% of his medical costs. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant.

$666

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant admits that he in indebted to Creditor C for a past-due medical debt in the amount of about $567. Applicant made a payment of $136 towards this debt in March of 2015, as evidenced by a credit card statement. I find that he is making a good-faith effort to address this debt; and as such, it is found for Applicant.

$567

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.d

It is alleged that Applicant is indebted to Creditor D for a past-due debt of about $537. Applicant disputes this debt as not being his debt. As this does not appear on the Government’s most recent credit report, this allegation is found for Applicant.

$537

For Applicant

Unspecified Financial

Denied

—

1.e

Applicant admits that he is indebted to Creditor E for five past-due medical debts totaling about $1,103. Despite having been given four months to do so, Applicant has yet to address these debts; and as such, they are found against Applicant.

$1,103

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f–1.h

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

Against Applicant

—

1.i

Applicant admits that he in indebted to Creditor I for a past-due medical debt in the amount of about $109. Applicant made a payment of $123 towards this debt in March of 2015, as evidenced by a credit card statement. I find that he has paid this debt; and as such, it is found for Applicant.

$109

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.j

Applicant admits that he in indebted to Creditor J for a past-due medical debt in the amount of about $106. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant.

$106

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Applicant admits that he in indebted to Creditor K for a past-due medical debt in the amount of about $97. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant.

$97

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

—

1.m

Applicant admits that he in indebted to Creditor M for a past-due medical debt in the amount of about $64. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant.

$64

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n–1.o

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

Against Applicant

—

1.p

Applicant admits that he in indebted to Creditor P for a past-due medical debt in the amount of about $84. Despite having been given four months to do so, Applicant has yet to address this debt; and as such, it is found against Applicant.

$84

Against Applicant

Medical Debt

Admitted

(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