ISCR Case 02-33093.h1

Case Headnote

ISCR Case No. 02-33093.h1

grantedSep 14, 2004· Hon. Darlene Lokey Anderson· hearing

Summary

This case concerns a 48-year-old Quality Engineer whose security clearance was initially questioned under Guideline F (Financial Considerations) due to a history of indebtedness. Specific allegations included a $2,783 delinquent bank account, charged off around August 2002, which had been reduced to $1,929.38 by August 2003 through payments. Another delinquent bank account, approximately $3,742, was referred to collection around May 2002; this debt was subsequently settled for $1,860.46 and paid in full. Additionally, the applicant's July 1, 2003, financial statement showed a negative net remainder of approximately $60 after monthly expenses.

Disqualifying conditions F.1 and F.3 were raised, but mitigating conditions F.1, F.2, F.4, and F.6 were applied. The applicant demonstrated a good faith effort to resolve his financial issues by taking over financial responsibilities and making significant efforts to repay debts.

He successfully settled one debt and was making payments on others, indicating financial improvement. Furthermore, the applicant sought professional credit counseling to assist in managing his debts. Based on these mitigating actions and demonstrated efforts, the applicant's security clearance was GRANTED.

Why the Applicant Prevailed

The applicant took over financial responsibilities and made significant efforts to repay debts.
He successfully settled one debt and is making payments on others, demonstrating financial improvement.
The applicant sought professional credit counseling to assist in managing his debts.

Conditions Referenced

Disqualifying

F.1raisedA History of Not Meeting Financial Obligations
F.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

F.1appliedThe Behavior Was Not Recent
F.2appliedIt Was an Isolated Incident
F.4appliedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F.6appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”
— Executive Order 10865

Procedural Posture

SOR issuedSep 29, 2003
Answer filedOct 23, 2003Applicant elected to proceed without a hearing.
Hearing held—Determined on written record.
Decision dateSep 14, 2004

Cite For

Good Faith Efforts to Resolve Financial Issues Under Guideline F
Mitigating Conditions Applicable to Financial Irresponsibility
Importance of Professional Credit Counseling in Financial Cases

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	The Applicant was indebted to a bank in the amount of $2,783.00 for a delinquent account charged off in about August 2002. As of June 20, 2003, this debt had not been paid. The Applicant indicates that he has made payments as late as August 2003. The record indicates that payments have reduced the debt down to $1,929.38. $2,783	For Applicant	Unspecified Financial	Denied	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.b	The Applicant was indebted to a bank in the approximate amount of $3,742.00 for a delinquent account referred to collection in about May 2002. As of June 20, 2003, this debt had not been paid. The Applicant negotiated a settlement amount with the creditor of $1,860.46. This debt has now been paid in full. $3,742	For Applicant	Unspecified Financial	Denied	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.c	The Applicant's personal financial statement dated July 1, 2003, indicates a negative net remainder of approximately $60.00 after the Applicant has paid his monthly expenses.	For Applicant	Unspecified Financial	Unknown	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant was indebted to a bank in the amount of $2,783.00 for a delinquent account charged off in about August 2002. As of June 20, 2003, this debt had not been paid. The Applicant indicates that he has made payments as late as August 2003. The record indicates that payments have reduced the debt down to $1,929.38.

$2,783

For Applicant

Unspecified Financial

Denied

—

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

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

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

(f) the affluence resulted from a legal source

—

1.b

The Applicant was indebted to a bank in the approximate amount of $3,742.00 for a delinquent account referred to collection in about May 2002. As of June 20, 2003, this debt had not been paid. The Applicant negotiated a settlement amount with the creditor of $1,860.46. This debt has now been paid in full.

$3,742

For Applicant

Unspecified Financial

Denied

—

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

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

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

(f) the affluence resulted from a legal source

—

1.c

The Applicant's personal financial statement dated July 1, 2003, indicates a negative net remainder of approximately $60.00 after the Applicant has paid his monthly expenses.

For Applicant

Unspecified Financial

Unknown

—

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

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

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

(f) the affluence resulted from a legal source

—

Loading case…

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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES