ISCR Case 14-02562.h1

Case Headnote

ISCR Case No. 14-02562.h1

grantedApr 30, 2015· Hon. Robert E. Coacher· hearing

Summary

A 53-year-old government contractor was granted a security clearance despite a history of financial difficulties under Guideline F (Financial Considerations). The applicant faced allegations concerning multiple delinquent debts and the improper use of a company credit card for personal expenses.

Specifically, the applicant had a $283 tax lien, which was paid and vacated in April 2013. A $9,789 debt from a voluntarily repossessed vehicle remained unresolved after the account was charged off due to income loss from foot surgery. Other consumer debts of $8,482, $1,149, and $1,264 were settled or paid through payment plans by June 2011, February 2015, and December 2014, respectively. Two telecommunications debts totaling $773 and $699 were resolved, with one paid and the other disputed. Six medical debts, ranging from $55 to $175, were resolved as they no longer appeared on her March 2015 credit report. Additional telecommunications debts of $141 and $136, and a medical debt of $118, were paid or disputed and resolved by September 2014. The applicant also resolved the balance owed from her personal use of a company credit card.

The clearance was granted because the applicant resolved most delinquent debts and demonstrated a good-faith effort to address her financial issues. Her financial difficulties were largely attributed to medical conditions beyond her control, which she credibly explained. Furthermore, the applicant received financial counseling and showed improved financial stability with disposable income.

Why the Applicant Prevailed

The applicant resolved most of her delinquent debts and demonstrated a good-faith effort to address her financial issues.
The financial difficulties were largely due to medical conditions beyond her control, which the applicant credibly explained.
The applicant received financial counseling and has a disposable income indicating improved financial stability.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(d)rejectedDeceptive or Illegal Financial PracticesThe applicant's use of the company credit card for personal expenses was found to be inadvertent.

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Counseling for the Problem
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedSep 12, 2014
Answer filedOct 9, 2014
Hearing heldMar 3, 2015
Decision dateApr 30, 2015

Cite For

Mitigation of Financial Issues Under Guideline F
Impact of Medical Conditions on Financial Stability
Good-faith Efforts to Resolve Debts as a Mitigating Factor

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	This is a tax debt that resulted in a $283 lien. The tax was paid and the lien was vacated in April 2013. This debt is resolved. $283	For Applicant	Tax Unpaid	Admitted	—	—	—
1.b	This is a debt based upon a voluntary repossessed vehicle in the amount of $9,789. Applicant returned the car when she could not make the payments because of her loss of income due to her foot surgery. She attempted to contact the creditor to negotiate a settlement, but was told the account was charged-off. This debt is unresolved. $9,789	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	This is a consumer debt in the amount of $8,482. Applicant settled this debt in June 2011. This debt is resolved. $8,482	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	This is a consumer debt in the amount of $1,149. Applicant presented documentation showing that she established a payment plan to pay this debt and made the last payment in February 2015. This debt is resolved. $1,149	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	This is a consumer debt in the amount of $1,264. Applicant presented documentation showing that she established a payment plan to pay this debt and made the last payment in December 2014. This debt is resolved. $1,264	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	This consists of two telecommunications debts to the same provider/creditor in the amounts of $773 and $699. Applicant presented documentation showing she paid one debt and disputed the second debt. These debts are resolved.	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.g	This consists of six medical debts in the amounts of $175, $96, $96, $96, $90, and $55. Applicant could not locate the collection company holding the accounts. None of the accounts appear on her March 2015 credit report. These debts are resolved.	For Applicant	Medical Debt	Denied	—	—	—
1.h	This is a telecommunications debt in the amount of $141. Applicant presented documentation showing that she paid this debt in September 2014. This debt is resolved. $141	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.i	This is a telecommunications debt in the amount of $136. Applicant disputed this debt. This account does not appear on her March 2015 credit report. This debt is resolved. $136	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.j	This is a medical debt in the amount of $118. Applicant presented documentation showing that she paid this debt in September 2014. This debt is resolved. $118	For Applicant	Medical Debt	Admitted	—	—	—
1.k	This is a duplicate debt with 1.e above. This debt is resolved.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.l	Applicant explained that she used her company-issued credit card for business purposes on several trips and then when she got back home she continued to use it for personal use not realizing it was her company card. When notified by her company, she stopped using her company card for personal use and has not used it since then. She paid the balance that was owed due to her personal use.	For Applicant	Credit Card Debt	Admitted	(d) deceptive or illegal financial practices	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a tax debt that resulted in a $283 lien. The tax was paid and the lien was vacated in April 2013. This debt is resolved.

$283

For Applicant

Tax Unpaid

Admitted

—

1.b

This is a debt based upon a voluntary repossessed vehicle in the amount of $9,789. Applicant returned the car when she could not make the payments because of her loss of income due to her foot surgery. She attempted to contact the creditor to negotiate a settlement, but was told the account was charged-off. This debt is unresolved.

$9,789

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

This is a consumer debt in the amount of $8,482. Applicant settled this debt in June 2011. This debt is resolved.

$8,482

For Applicant

Unspecified Financial

Admitted

—

1.d

This is a consumer debt in the amount of $1,149. Applicant presented documentation showing that she established a payment plan to pay this debt and made the last payment in February 2015. This debt is resolved.

$1,149

For Applicant

Unspecified Financial

Admitted

—

1.e

This is a consumer debt in the amount of $1,264. Applicant presented documentation showing that she established a payment plan to pay this debt and made the last payment in December 2014. This debt is resolved.

$1,264

For Applicant

Unspecified Financial

Admitted

—

1.f

This consists of two telecommunications debts to the same provider/creditor in the amounts of $773 and $699. Applicant presented documentation showing she paid one debt and disputed the second debt. These debts are resolved.

For Applicant

Utility or Phone Debt

Denied

—

1.g

This consists of six medical debts in the amounts of $175, $96, $96, $96, $90, and $55. Applicant could not locate the collection company holding the accounts. None of the accounts appear on her March 2015 credit report. These debts are resolved.

For Applicant

Medical Debt

Denied

—

1.h

This is a telecommunications debt in the amount of $141. Applicant presented documentation showing that she paid this debt in September 2014. This debt is resolved.

$141

For Applicant

Utility or Phone Debt

Admitted

—

1.i

This is a telecommunications debt in the amount of $136. Applicant disputed this debt. This account does not appear on her March 2015 credit report. This debt is resolved.

$136

For Applicant

Utility or Phone Debt

Denied

—

1.j

This is a medical debt in the amount of $118. Applicant presented documentation showing that she paid this debt in September 2014. This debt is resolved.

$118

For Applicant

Medical Debt

Admitted

—

1.k

This is a duplicate debt with 1.e above. This debt is resolved.

For Applicant

Unspecified Financial

Unknown

—

1.l

Applicant explained that she used her company-issued credit card for business purposes on several trips and then when she got back home she continued to use it for personal use not realizing it was her company card. When notified by her company, she stopped using her company card for personal use and has not used it since then. She paid the balance that was owed due to her personal use.

For Applicant

Credit Card Debt

Admitted

(d) deceptive or illegal financial practices

—

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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