ISCR Case 14-03039.h1

Case Headnote

ISCR Case No. 14-03039.h1

grantedJun 9, 2015· Hon. Mark W. Harvey· hearing

Summary

A 34-year-old systems engineer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged 13 charged-off or collection accounts totaling $22,241, along with a mortgage foreclosure. These included various medical, utility, bank, city, and telecommunications debts.

The applicant successfully addressed all the alleged financial issues. Ten of the 13 debts, totaling $20,697, were resolved through payment or settlement. For example, a $120 utilities debt was paid in full by October 2014, and six medical debts totaling $491 were paid by March 2015. Bank collection debts, initially listed as $8,404 and $6,024 (duplications of each other), were satisfied with a $4,000 payment. Three other debts, totaling $1,544, were successfully disputed and removed from his credit report. The mortgage foreclosure allegation was clarified as a short sale of a rental property in 2010.

The judge found that the financial concerns were mitigated. The applicant attributed his financial difficulties primarily to circumstances beyond his control, specifically a lengthy divorce and undisclosed debts incurred by his former spouse. He also demonstrated responsible financial behavior and sought financial counseling, leading to the clearance being granted.

Why the Applicant Prevailed

Applicant resolved 10 of the 13 SOR debts totaling $20,697 and successfully disputed 3 debts totaling $1,544.
The financial issues were largely due to circumstances beyond his control, including a lengthy divorce and his former spouse's undisclosed debts.
Applicant demonstrated responsible financial behavior and received financial counseling.

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)appliedThe Conditions 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

“Eligibility for access to classified information is granted only upon a finding that it is clearly consistent with the national interest to do so.”
— Exec. Or. 10865, Safeguarding Classified Information within Industry § 2 (Feb. 20, 1960), as amended.

Procedural Posture

SOR issuedAug 25, 2014
Answer filedSep 30, 2014
Hearing heldMay 12, 2015
Decision dateJun 9, 2015

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond Control
Successful Dispute of Debts as a Mitigating Factor
Good-faith Efforts to Resolve Financial Obligations

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	is a utilities collection debt for $120. On October 17, 2014, the creditor wrote that the debt was paid in full. $120	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	are six medical collection debts for $491. On March 30, 2015, the creditor wrote the medical debt in SOR ¶ 1.b was paid, and the balance is zero. $491	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	are six medical collection debts for $307. Applicant’s credit reports indicate the medical debts in SOR ¶¶ 1.c and 1.d were successfully disputed and removed from his credit report. $307	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Disputed with Creditor
1.d	are six medical collection debts for $993. Applicant’s credit reports indicate the medical debts in SOR ¶¶ 1.c and 1.d were successfully disputed and removed from his credit report. $993	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Disputed with Creditor
1.e	are bank collection debts for $8,404. SOR ¶¶ 1.e and 1.l are duplications of each other. On March 26, 2015, the creditor wrote that Applicant paid $4,000, and the debt was satisfied in full. $8,404	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	is a bank collection debt for $3,435. Applicant made payments from October to December 2014, and on January 12, 2015, the creditor wrote that the debt was settled. $3,435	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	alleges Applicant has a mortgage loan resulting in a foreclosure. In 2010, Applicant transferred ownership of his rental property through a short sale.	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	is a utility debt for $189. On March 26, 2015, the creditor wrote that the debt was paid, and the balance is zero. $189	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.i	are six medical collection debts for $374. The creditor for the medical debt in SOR ¶ 1.i wrote that the debt was paid in full. $374	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j	is a medical debt for $237. On April 14, 2015, the creditor for the medical debt in SOR ¶ 1.j wrote the debt was paid in full, and the balance is zero. $237	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.k	is a medical debt for $657. On May 4, 2015, the creditor for the medical debt in SOR ¶ 1.k wrote the debt was paid in full, and the balance is zero. $657	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.l	are bank collection debts for $6,024. SOR ¶¶ 1.e and 1.l are duplications of each other. On March 26, 2015, the creditor wrote that Applicant paid $4,000, and the debt was satisfied in full. $6,024	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	is a city collection debt for $244. On March 5, 2015, the creditor wrote that the debt was paid, and the balance is zero. $244	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.n	is a telecommunications debt for $766. On March 26, 2015, the creditor wrote that Applicant’s dispute was approved, and the derogatory entry would be removed from his credit report. $766	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Disputed with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

is a utilities collection debt for $120. On October 17, 2014, the creditor wrote that the debt was paid in full.

$120

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.b

are six medical collection debts for $491. On March 30, 2015, the creditor wrote the medical debt in SOR ¶ 1.b was paid, and the balance is zero.

$491

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.c

are six medical collection debts for $307. Applicant’s credit reports indicate the medical debts in SOR ¶¶ 1.c and 1.d were successfully disputed and removed from his credit report.

$307

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Disputed with Creditor

1.d

are six medical collection debts for $993. Applicant’s credit reports indicate the medical debts in SOR ¶¶ 1.c and 1.d were successfully disputed and removed from his credit report.

$993

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Disputed with Creditor

1.e

are bank collection debts for $8,404. SOR ¶¶ 1.e and 1.l are duplications of each other. On March 26, 2015, the creditor wrote that Applicant paid $4,000, and the debt was satisfied in full.

$8,404

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.f

is a bank collection debt for $3,435. Applicant made payments from October to December 2014, and on January 12, 2015, the creditor wrote that the debt was settled.

$3,435

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.g

alleges Applicant has a mortgage loan resulting in a foreclosure. In 2010, Applicant transferred ownership of his rental property through a short sale.

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.h

is a utility debt for $189. On March 26, 2015, the creditor wrote that the debt was paid, and the balance is zero.

$189

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.i

are six medical collection debts for $374. The creditor for the medical debt in SOR ¶ 1.i wrote that the debt was paid in full.

$374

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.j

is a medical debt for $237. On April 14, 2015, the creditor for the medical debt in SOR ¶ 1.j wrote the debt was paid in full, and the balance is zero.

$237

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.k

is a medical debt for $657. On May 4, 2015, the creditor for the medical debt in SOR ¶ 1.k wrote the debt was paid in full, and the balance is zero.

$657

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.l

are bank collection debts for $6,024. SOR ¶¶ 1.e and 1.l are duplications of each other. On March 26, 2015, the creditor wrote that Applicant paid $4,000, and the debt was satisfied in full.

$6,024

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.m

is a city collection debt for $244. On March 5, 2015, the creditor wrote that the debt was paid, and the balance is zero.

$244

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.n

is a telecommunications debt for $766. On March 26, 2015, the creditor wrote that Applicant’s dispute was approved, and the derogatory entry would be removed from his credit report.

$766

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Disputed with Creditor

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES