ISCR Case 14-02802.h1

Case Headnote

ISCR Case No. 14-02802.h1

grantedMar 25, 2015· Hon. Noreen A. Lynch· hearing

Summary

A 37-year-old single mother, employed as a security assistant, was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several delinquent debts, including a $511 credit card account that had been sold, six past-due student loans, a $220 collection account with a telephone/cable company, a past-due mortgage, and outstanding parking tickets.

The applicant demonstrated significant efforts to resolve these financial issues. She contacted the collection company regarding the credit card debt and was informed the account had been sold. Her six student loans were consolidated and became current, with payments set to resume in July 2015. She also contacted the telephone/cable company and was told she had no outstanding balance.

Furthermore, the applicant obtained a loan modification for her past-due mortgage in April 2014, incorporating the arrearage, and is now current on her $1,191 monthly payments. She also paid $750 for the alleged parking tickets. These actions demonstrated financial reform and responsible management, leading to the decision to grant her security clearance.

Why the Applicant Prevailed

The applicant consolidated her student loans and is current on payments, with payments resuming in July 2015.
She modified her mortgage loan and is current on her mortgage payments.
The applicant has shown financial reform and responsible management of her finances.

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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlThe applicant's financial difficulties were due to multiple factors, including unexpected expenses.
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem

Key Rule Quoted

“The ultimate burden of persuasion is on the applicant seeking a security clearance.”

Procedural Posture

SOR issuedAug 5, 2014
Answer filed—
Hearing heldMar 13, 2015Originally scheduled for 03/06/2015 but postponed due to inclement weather.
Decision dateMar 25, 2015

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Demonstrating Good-faith Efforts to Resolve Financial Issues
Whole-person Concept in Security Clearance Evaluations

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	Applicant recently contacted the collection company. She understands that the account has been sold. The original account was a credit card. The delinquent amount is $511. $511	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant has six student loans that are past-due, which have been consolidated and are current. Her payments resume in July 2015.	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c–1.g	5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.h	Applicant called the telephone/cable company regarding a collection account for $220. She was told that she does not have a balance. $220	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.i	Applicant had a mortgage loan that was past-due. She obtained a loan modification in April 2014. The arrearage was added into the approved modification. She is current on her monthly mortgage payment of $1,191. $16,801	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j	Applicant paid $750 and provided a receipt for the parking tickets alleged. $750	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.k–1.l	2 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

Applicant recently contacted the collection company. She understands that the account has been sold. The original account was a credit card. The delinquent amount is $511.

$511

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.b

Applicant has six student loans that are past-due, which have been consolidated and are current. Her payments resume in July 2015.

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.c–1.g

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

For Applicant

—

1.h

Applicant called the telephone/cable company regarding a collection account for $220. She was told that she does not have a balance.

$220

For Applicant

Utility or Phone Debt

Admitted

—

1.i

Applicant had a mortgage loan that was past-due. She obtained a loan modification in April 2014. The arrearage was added into the approved modification. She is current on her monthly mortgage payment of $1,191.

$16,801

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.j

Applicant paid $750 and provided a receipt for the parking tickets alleged.

$750

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.k–1.l

2 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

FOOTNOTES