ISCR Case 01-26417.h1

Case Headnote

ISCR Case No. 01-26417.h1

deniedSep 11, 2003· Hon. Joan Caton Anthony· hearing

Summary

A 38-year-old former Air Force technician was denied a security clearance under Guideline F, Financial Considerations, due to approximately $16,000 in unresolved debts. The Statement of Reasons detailed multiple outstanding debts, including amounts of approximately $737, $1,582, $2,148, $1,125, $209, $7,864, $928, and $2,000, with accounts opened between 1991 and 1999, all unpaid as of March 2001.

Disqualifying conditions related to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts were raised. While mitigating conditions concerning the debts not being recent, the circumstances being beyond the applicant's control, and the applicant having initiated a good-faith effort to resolve the issues were considered, they were ultimately not sufficient.

The denial was based on the applicant's admission of approximately $16,000 in unpaid debts, which demonstrated a history of failing to meet financial obligations. Despite acknowledging her financial issues and expressing an intention to pay, she did not provide specific repayment plans or evidence of good-faith efforts to resolve the debts. The judge concluded that her financial problems were longstanding and not isolated incidents, posing a security risk.

Why the Applicant Was Denied

Applicant admitted to approximately $16,000 in unpaid debts, demonstrating a history of not meeting financial obligations.
She failed to provide evidence of any good-faith efforts to repay her debts or resolve her financial issues.
The judge found that the applicant's financial problems were longstanding and not isolated incidents.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.1rejectedThe Behavior Was Not RecentApplicant's debts were longstanding and unpaid.
E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe applicant's financial issues were part of a pattern of instability.
E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlSome financial issues stemmed from unemployment and divorce.
E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not provide evidence of any actions taken to repay debts.

Key Rule Quoted

“"A promise to take action in the future, however sincere, is not a substitute for evidence that the Applicant is taking specific and timely steps to address her delinquent debts."”
— ISCR Case No. 01-03055 (App. Bd. Mar. 21, 2002)

Procedural Posture

SOR issuedAug 22, 2002
Answer filedOct 2, 2002Applicant requested a decision on the record.
Hearing held—
Decision dateSep 11, 2003

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
Importance of Demonstrating Good-faith Efforts to Resolve Debts
Consideration of Personal Circumstances in Financial Delinquencies but Not as a Substitute for Evidence of Repayment Efforts.

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 is indebted to a creditor in the amount of approximately $737 on an account opened in November 1991, and that, as of March 23, 2001, the account had not been paid. $737	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant is indebted to a creditor in the amount of approximately $1,582 on an account opened in September 1998 and, that, as of March 23, 2001, the account had not been paid. $1,582	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant is indebted to a creditor in the amount of approximately $2,148 on an account opened in August 1999, and, that as of March 23, 2001, the debt had not been paid. $2,148	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d–1.f	3 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.g	Applicant is indebted to a creditor in the amount of approximately $1,125 on an account opened in September 1993, and, that, as of March 23, 2001, the account had not been paid. $1,125	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.h	Applicant is indebted to a creditor in the amount of approximately $209 on an account opened in October 1999, and that, as of March 23, 2001, the account had not been paid. $209	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.i	specific text not stated in this decision	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.j	Applicant is indebted to a bank in the amount of approximately $7,864 on an account opened in 1999 and, that, as of March 23, 2001, the debt had not been paid. $7,864	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.k	Applicant is indebted to a creditor in the amount of approximately $928 on an account opened in 1997 and, that as of March 23, 2001, the account had not been paid. $928	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.l	specific text not stated in this decision	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.m	Applicant is indebted to a creditor in the amount of approximately $2,000 on an account opened in January 1995, and that, as of March 23, 2000, the account had not been paid. $2,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to a creditor in the amount of approximately $737 on an account opened in November 1991, and that, as of March 23, 2001, the account had not been paid.

$737

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

Applicant is indebted to a creditor in the amount of approximately $1,582 on an account opened in September 1998 and, that, as of March 23, 2001, the account had not been paid.

$1,582

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

Applicant is indebted to a creditor in the amount of approximately $2,148 on an account opened in August 1999, and, that as of March 23, 2001, the debt had not been paid.

$2,148

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d–1.f

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

Against Applicant

—

1.g

Applicant is indebted to a creditor in the amount of approximately $1,125 on an account opened in September 1993, and, that, as of March 23, 2001, the account had not been paid.

$1,125

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.h

Applicant is indebted to a creditor in the amount of approximately $209 on an account opened in October 1999, and that, as of March 23, 2001, the account had not been paid.

$209

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.i

specific text not stated in this decision

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.j

Applicant is indebted to a bank in the amount of approximately $7,864 on an account opened in 1999 and, that, as of March 23, 2001, the debt had not been paid.

$7,864

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.k

Applicant is indebted to a creditor in the amount of approximately $928 on an account opened in 1997 and, that as of March 23, 2001, the account had not been paid.

$928

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.l

specific text not stated in this decision

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.m

Applicant is indebted to a creditor in the amount of approximately $2,000 on an account opened in January 1995, and that, as of March 23, 2000, the account had not been paid.

$2,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES