ISCR Case 03-02403.h1

Case Headnote

ISCR Case No. 03-02403.h1

grantedMay 4, 2005· Hon. Carol G. Ricciardello· hearing

Summary

A 28-year-old divorced financial analyst was granted a security clearance despite concerns under Guideline F (Financial Considerations) related to significant delinquent debts. The Statement of Reasons detailed nine financial allegations. These included a $316 collection account from an unauthorized telephone account, a $567 collection account for which a payment plan was established, and a $133 utilities collection account that the applicant paid despite disputing responsibility.

Other allegations involved a $589 collection account that was resolved and paid, an overdue $39 bill that the applicant was unaware of but paid, and a voluntary repossession initially listed at $16,255 but clarified to be $4,587, on which the applicant made consistent monthly payments. Additionally, a $1,154 collection account, disputed due to unauthorized charges by his ex-wife, was paid in full. Two school debts were also cited: one for $1,585, which was paid, and another for $3,803.54, which the applicant disputed, claiming a lower amount was due and making consistent payments to reduce it to $1,637.

The clearance was granted because the applicant successfully mitigated the financial concerns. The judge found that the financial issues were largely beyond his control, stemming from his ex-wife's financial irresponsibility. Following his divorce, the applicant demonstrated a consistent payment history and took proactive steps to resolve most of the delinquent debts, including those primarily his ex-wife's responsibility.

Why the Applicant Prevailed

The applicant demonstrated a consistent payment history on debts after his divorce.
He took proactive steps to resolve most of the delinquent debts, including paying off debts that were his ex-wife's responsibility.
The financial issues were largely beyond the applicant's control due to his ex-wife's irrational spending and refusal to manage finances.

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.A6.1.3.1appliedThe Behavior Was Not Recent
E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The sole purpose of a security clearance determination is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”

Procedural Posture

SOR issuedNov 3, 2003
Answer filedDec 4, 2003Applicant elected to have the case decided on the written record.
Hearing held—No hearing; decided on the written record.
Decision dateMay 4, 2005

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond the Applicant's Control
Proactive Efforts to Resolve Delinquent Debts Leading to a Favorable Outcome
The Impact of a Spouse's Financial Irresponsibility on an Applicant's 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	Collection account, $316.00. Due October 2001, unpaid as of August 2003. Telephone account acquired by in-laws without authorization. Removed from credit report and credit agency opened fraud investigation. $316	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Collection account , $567.00. Due April 2001, unpaid as of August 2003. Payment plan, paid two equal installment payments to satisfy debt. Will attempt to recoup ex-wife's share. $567	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Collection $133.00, utilities account. Due March 2002, unpaid as of August 2003. Applicant had sold home, utilities did not transfer. Paid debt to resolve, even though claims he was not responsible. $133	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.d	Collection account, $589.00. Due February 2002, unpaid as of August 2003. Resolved dispute May 2004, paid. $589	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Overdue bill for $39.00, unpaid as of August 2003. Applicant was unaware of bill. Paid. $39	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Voluntary repossession, $16,255.00, unpaid as of August 2003. Incorrect amount. Actual amount owed as of November 2003 is $4,587.00. Applicant consistently pays $150.00 a month. $16,525	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.g	Collection account $1,154.00, unpaid as of August 2003. Paid in full as of April 27, 2004. Applicant disputed charges due to unauthorized charges to his account by ex-wife. $1,154	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	School debt charged off/collection for $1,585.00 as of August 2003. Paid. $1,585	For Applicant	Student Loan Debt	Admitted	—	—	—
1.i	School debt/delinquent, $3,803.54 as of October 2002. Disputes amount, claims $2,179.00 was due and Applicant has been providing monthly payments and further reduced debt to $1,637.00 as of May 2004. $3,803	For Applicant	Student Loan Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Collection account, $316.00. Due October 2001, unpaid as of August 2003. Telephone account acquired by in-laws without authorization. Removed from credit report and credit agency opened fraud investigation.

$316

For Applicant

Unspecified Financial

Admitted

—

1.b

Collection account , $567.00. Due April 2001, unpaid as of August 2003. Payment plan, paid two equal installment payments to satisfy debt. Will attempt to recoup ex-wife's share.

$567

For Applicant

Unspecified Financial

Admitted

—

1.c

Collection $133.00, utilities account. Due March 2002, unpaid as of August 2003. Applicant had sold home, utilities did not transfer. Paid debt to resolve, even though claims he was not responsible.

$133

For Applicant

Utility or Phone Debt

Admitted

—

1.d

Collection account, $589.00. Due February 2002, unpaid as of August 2003. Resolved dispute May 2004, paid.

$589

For Applicant

Unspecified Financial

Admitted

—

1.e

Overdue bill for $39.00, unpaid as of August 2003. Applicant was unaware of bill. Paid.

$39

For Applicant

Unspecified Financial

Admitted

—

1.f

Voluntary repossession, $16,255.00, unpaid as of August 2003. Incorrect amount. Actual amount owed as of November 2003 is $4,587.00. Applicant consistently pays $150.00 a month.

$16,525

For Applicant

Auto Loan Debt

Admitted

—

1.g

Collection account $1,154.00, unpaid as of August 2003. Paid in full as of April 27, 2004. Applicant disputed charges due to unauthorized charges to his account by ex-wife.

$1,154

For Applicant

Unspecified Financial

Admitted

—

1.h

School debt charged off/collection for $1,585.00 as of August 2003. Paid.

$1,585

For Applicant

Student Loan Debt

Admitted

—

1.i

School debt/delinquent, $3,803.54 as of October 2002. Disputes amount, claims $2,179.00 was due and Applicant has been providing monthly payments and further reduced debt to $1,637.00 as of May 2004.

$3,803

For Applicant

Student Loan Debt

Admitted

—

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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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES