ISCR Case 14-06667.h1

Case Headnote

ISCR Case No. 14-06667.h1

deniedOct 30, 2015· Hon. James F. Duffy· hearing

Summary

A 44-year-old administrative assistant, seeking her initial security clearance, was denied due to financial considerations under Guideline F. The applicant had 12 delinquent debts totaling $8,068, which she attributed to periods of unemployment.

Specific concerns included an unresolved credit card debt from February 2011, a department store charge card debt from June 2014 for which no proof of payment was provided, and several unresolved medical debts dating from 2010 to 2012. Additionally, a judgment filed in January 2010 on a credit card account had increased to $4,273 by November 2014, leading to a wage garnishment of $200 per month starting in February 2015. Other unresolved debts included a retail store charge card and a checking account in collection.

Despite presenting some evidence of good character, the judge determined there was insufficient evidence to demonstrate that her financial problems were under control or would be resolved within a reasonable timeframe. The judge also found that the wage garnishment did not constitute a good-faith effort to resolve the debts, leading to the denial of her security clearance.

Why the Applicant Was Denied

Applicant had 12 delinquent debts totaling $8,068, which she failed to resolve.
Insufficient evidence was presented to show that her financial problems were under control or would be resolved within a reasonable period.
The judge found that the garnishment of wages did not constitute a good-faith effort to resolve debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”

Procedural Posture

SOR issuedFeb 26, 2015
Answer filedApr 10, 2015
Hearing heldJul 21, 2015
Decision dateOct 30, 2015

Cite For

Insufficient Evidence to Demonstrate Financial Stability Under Guideline F
Impact of Unresolved Debts on Security Clearance Eligibility
Consideration of the Whole-person Concept in Clearance Decisions

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	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.b	This was a credit card debt that had a date of last activity of February 2011. It was assigned for collection in May 2011. Applicant testified that she has been in contact with the creditor to establish a repayment plan, but that plan had not yet been finalized. This debt is unresolved. $681	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	This was a department store charge card that had a date of last activity of June 2014. Applicant testified that this debt was paid in March 2015. However, she failed to provide proof that it was paid. Insufficient evidence was presented to show this debt was resolved. $269	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	This was a medical debt that had a date of last activity of March 2012. Applicant testified this debt was incurred for one of her children who qualified for Medicaid. She did not know why Medicaid did not cover this debt. It remains unresolved. $616	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	This was a medical debt that had a date of last activity of March 2012. Applicant did not have health insurance when she incurred this debt. It remains unresolved. $470	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	These were medical debts that had dates of last activity of January and February 2010. No evidence was presented to establish these debts were resolved. $306	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	This was a medical co-pay that had a date of last activity of February 2010. No evidence was presented to establish this debt was resolved. $110	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	This was a credit card account that had a credit limit of $500 and a date of last activity of February 2011. Comments in a credit report entry reflect that this account was charged off, was transferred or sold, and had a zero balance. Applicant testified that she did not have any knowledge of this account. No other credit report entries reflect the transfer or sale of this debt or the actual amount owed. $500	For Applicant	Credit Card Debt	Unknown	—	—	—
1.i	This was a dental bill that had a high credit amount of $895 and a date of last activity of November 2010. Comments in a credit report entry reflect that this account was charged off, was transferred or sold, and had a zero balance. No other credit report entries address this debt. Applicant testified this account is unresolved. $895	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	This was a judgment filed in January 2010 on a credit card account. As of November 2014, the amount of this debt had increased to $4,273 because of accrued interest and court costs. In February 2015, Applicant was a defendant in a garnishment action for this debt and agreed to have $200 of her monthly wages garnished. She provided two pay stubs reflecting the garnishment was being executed. $2,621	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	This was a charge card account from a retail store that was assigned for collection in May 2011. It remains unresolved. $1,287	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.l	This was a checking account that was reported in a collection status in March 2013. The date of last activity and the date it was assigned for collection are unknown. It is unresolved. $283	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.m	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

1.b

This was a credit card debt that had a date of last activity of February 2011. It was assigned for collection in May 2011. Applicant testified that she has been in contact with the creditor to establish a repayment plan, but that plan had not yet been finalized. This debt is unresolved.

$681

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

This was a department store charge card that had a date of last activity of June 2014. Applicant testified that this debt was paid in March 2015. However, she failed to provide proof that it was paid. Insufficient evidence was presented to show this debt was resolved.

$269

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

This was a medical debt that had a date of last activity of March 2012. Applicant testified this debt was incurred for one of her children who qualified for Medicaid. She did not know why Medicaid did not cover this debt. It remains unresolved.

$616

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

This was a medical debt that had a date of last activity of March 2012. Applicant did not have health insurance when she incurred this debt. It remains unresolved.

$470

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

These were medical debts that had dates of last activity of January and February 2010. No evidence was presented to establish these debts were resolved.

$306

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

This was a medical co-pay that had a date of last activity of February 2010. No evidence was presented to establish this debt was resolved.

$110

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

This was a credit card account that had a credit limit of $500 and a date of last activity of February 2011. Comments in a credit report entry reflect that this account was charged off, was transferred or sold, and had a zero balance. Applicant testified that she did not have any knowledge of this account. No other credit report entries reflect the transfer or sale of this debt or the actual amount owed.

$500

For Applicant

Credit Card Debt

Unknown

—

1.i

This was a dental bill that had a high credit amount of $895 and a date of last activity of November 2010. Comments in a credit report entry reflect that this account was charged off, was transferred or sold, and had a zero balance. No other credit report entries address this debt. Applicant testified this account is unresolved.

$895

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

This was a judgment filed in January 2010 on a credit card account. As of November 2014, the amount of this debt had increased to $4,273 because of accrued interest and court costs. In February 2015, Applicant was a defendant in a garnishment action for this debt and agreed to have $200 of her monthly wages garnished. She provided two pay stubs reflecting the garnishment was being executed.

$2,621

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

This was a charge card account from a retail store that was assigned for collection in May 2011. It remains unresolved.

$1,287

Against Applicant

Unspecified Financial

Unknown

—

1.l

This was a checking account that was reported in a collection status in March 2013. The date of last activity and the date it was assigned for collection are unknown. It is unresolved.

$283

Against Applicant

Unspecified Financial

Unknown

—

1.m

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

—

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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

DECISION

FOOTNOTES