ISCR Case 14-06525.h1

Case Headnote

ISCR Case No. 14-06525.h1

deniedAug 31, 2015· Hon. Noreen A. Lynch· hearing

Summary

A 35-year-old military veteran and current employee was denied a security clearance under Guideline F (Financial Considerations) due to approximately $33,000 in delinquent debt, including child support arrears and student loans. The Statement of Reasons detailed several financial issues. The applicant had an agreement to resolve child support arrears by paying $4,000 and was current on ongoing payments. An auto loan resulted in a voluntary repossession, and a student loan was eligible for forgiveness upon program completion.

Other debts included an account over 120 days past due for approximately $2,211, which the applicant claimed was for defective furniture. He also settled a phone account for $306. A 2008 judgment was being addressed through a payment plan initiated in February 2015 for $2,800, and a 2007 medical judgment for $917 was also noted. The applicant claimed some listed debts were duplicates.

Despite efforts to address some obligations, the judge found that the applicant admitted to incurring delinquent debt, which was corroborated by credit reports. Ultimately, the applicant failed to demonstrate a meaningful track record of responsible financial management and did not provide sufficient documentation to substantiate disputes regarding several debts, leading to the denial.

Why the Applicant Was Denied

The applicant admitted to incurring delinquent debt, which was confirmed by credit reports.
The applicant failed to demonstrate a meaningful track record of responsible financial management.
The applicant did not provide sufficient documentation to substantiate disputes regarding several debts.

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)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved, or Is Under Control

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
— AG ¶ 2(b)

Procedural Posture

SOR issuedJan 27, 2015
Answer filed—Timely answered the SOR.
Hearing heldAug 4, 2015Originally scheduled for July 30, 2015, but rescheduled.
Decision dateAug 31, 2015

Cite For

Denial of Security Clearance Due to Financial Considerations Under Guideline F
Insufficient Evidence of Responsible Financial Management
Impact of Unresolved Debts 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	Applicant provided documentation that he had an agreement with the child’s mother to forgive the amount of the arrearage, if he paid her $4,000. He also presented documentation that shows he is current with his child support.	For Applicant	Child Support Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	This collection account is for an auto loan. He states that this was a voluntary repossession and that the vehicle was sold and the account is closed. $4,570	Against Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	For a student loan in collection, Applicant presented a letter from the school that noted the debt would be forgiven if he registers, completes the program and graduates. $4,516	Against Applicant	Student Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	For an account that is 120 days or more past due in an amount of approximately $2,211, Applicant purchased furniture, which he claimed was defective. $2,211	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant presented documentation that he settled the debt for a phone account in the amount of $306. $306	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	For a 2008 judgment, Applicant started a payment plan in February 2015. He agreed to pay $2,800. $4,333	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	Applicant claimed that the debt was a medical account that went to judgment in 2007 for $917. $917	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h–1.l	5 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.m	Applicant testified that the debt is the same as the debt in 1.f. (low confidence)	For Applicant	Unspecified Financial	Admitted	—	—	—
1.n	Applicant stated that this is a duplicate account. (low confidence)	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant provided documentation that he had an agreement with the child’s mother to forgive the amount of the arrearage, if he paid her $4,000. He also presented documentation that shows he is current with his child support.

For Applicant

Child Support Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.b

This collection account is for an auto loan. He states that this was a voluntary repossession and that the vehicle was sold and the account is closed.

$4,570

Against Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

For a student loan in collection, Applicant presented a letter from the school that noted the debt would be forgiven if he registers, completes the program and graduates.

$4,516

Against Applicant

Student Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

For an account that is 120 days or more past due in an amount of approximately $2,211, Applicant purchased furniture, which he claimed was defective.

$2,211

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant presented documentation that he settled the debt for a phone account in the amount of $306.

$306

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.f

For a 2008 judgment, Applicant started a payment plan in February 2015. He agreed to pay $2,800.

$4,333

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.g

Applicant claimed that the debt was a medical account that went to judgment in 2007 for $917.

$917

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h–1.l

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

Against Applicant

—

1.m

Applicant testified that the debt is the same as the debt in 1.f. (low confidence)

For Applicant

Unspecified Financial

Admitted

—

1.n

Applicant stated that this is a duplicate account. (low confidence)

For Applicant

Unspecified Financial

Admitted

—

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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