Denial of Security Clearance

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I am currently going through a Top Secret Backgorund check,I currently have one which I got about 7 years ago. However I am very worried that they will deny my clearance due to some problems with my credit, the unfortunate thing is that it is my dad's not mine. I started to write this letter in case I have to go to an appeal for denial. I just wanted to get some comments, suggestions and maybe some direction about this. They do look heavily on how you have mitigated you current debt, so I am not to concern about the things I have done, it's how do I prove the others our not mine because they show lack of resolve. Thank You! (It is a little long)

During my testimony your honor I will present to you an underlining problem of using a Credit Report to determine my evaluation of clearance. Along with actual comments from Mr. Leonard A. Bennett I will go into details with actual documentation of the extent of the resolution I have tried to get from these unfortunate circumstances. I start off with next insertion:

Written Testimony before THE HOUSE COMMITTEE ON FINANCIAL SERVICES

Regarding "Fair Credit Reporting Act: How it Functions for Consumers and the Economy"

June 19, 2007 Submitted by: Leonard A. Bennett on behalf of National Association of Consumer Advocates.

Mixed Files: Many credit reporting inaccuracies are caused entirely by the CRAs. These are typically the “mixed file” cases and their related offshoot “identity theft.” There are multiple causes of “ownership” inaccuracies in which a credit account or other item belonging to one person appears in the credit report of another. One of the ways this can occur, as discussed below, is through inaccurate reporting by a creditor. Another common explanation – mixed or merged files – is caused by the way reporting agencies match data to files. Mixed or Mismerged files are now a frequent problem. One study found that 44% of consumer reporting complaints to the FTC involved mismerged files. Of these complaints, 64% had total strangers’ files mixed in with the consumer’s, while 36% involved information belonging to relatives or former spouses.1

I am a victim of a mixed file: My father and I have the same full name, even though I am a JR. Most credit information on my credit report does not show this change. From a period of a month in 2005 I spent time with my mother at 902 Nolan Ave. Killeen, TX 76542. This is the last known address for my father which in 1996 made Panama City, Panama his permanent address. This is when most of these allegations came to be. I have been able to delete some, which where accumulated before I was even 18 and was easily fixed by sending my driver’s license to the 3 Credit Reporting Agencies which included even a mortgage. Some of the troubles I have however do not even show on my credit report. Here are 6 different companies that have attempted to collect from me at my address for debt occurred from my dad which do not show on my credit report. I get at least one call a day from other companies asking to do the same.

So how does this happen? Will in the same testimony referenced above it goes on to state that the CRA’s have an aggressive matching procedure which the system looks for similarities and than attaches it to a credit file. I include that this has no human intervention, to prevent small mistakes like this from happening. A Prime example of this situation is Johnson v. MBNA Am. Bank, N.A., and 357 F.3d 426 (4th Cir.2004). It goes on to show how easily information can be merged and how difficult it can be to remove. It also explains the responsibility of a data furnisher and the credit reporting agencies to provide a proper investigation.

There are currently three files that have sustained my consistent letters to remove or create proper investigation, I have been denied all of the mentioned above procedures through the FRCA. Here is all my documentation related to my efforts in resolving this matter. I include as well that Experian and Equifax have decided recently to remove CitiFinancial off my credit due to lack of information provided by CitiFinancial. I also state that Bank of America in a previous conversation with one of their collection agents stated that they had no proof of this debt besides the information on their system. Both CitiFinancial and Bank of America are sold to another company which as well tried to collect with no avail due to lack of sustaining information to prove this debt was mine. You will see they do not report on my credit files upon these circumstances. Unlike the other 2 companies UAC state they continue to own ownership of this account but as well has not provided me with any documentation not even automated information of payment history as such. Under another case Sara Johnson v. MBNA the jury concluded that “that if ... MBNA no longer had the application, they could have at least informed the credit reporting agencies that MBNA could not conclusively verify that Johnson was a co-obligor”2. So I state in my defense your honor without proof of debt by either of these companies it can not be determined at this time to be mine through this hearing as well. Please understand I have exhausted all remedial efforts to resolve the issue in display. I am currently in efforts to sue these companies under FRCA 623 for many counts of violation including denial of clearance for defamation of character.

The credit reporting agencies have done much injustice to me as well, due to the lack of diligent and accurate investigations. There has been numerous testimonies and case law that present the problem at hand. This enforces my case, Cushman v. Trans Union.3 the Third Circuit stated in this 1997 decision: The "grave responsibility" imposed by [§611(a)] must consist of something more than merely parroting information received from other sources. Therefore, a "reinvestigation" that merely shifts the burden back to the consumer and the credit grantor cannot fulfill the obligations contemplated by the statute. However this has not changed were the CRA’s only use an Automated Consumer Dispute Verification (ACDV) system to shorten or lessen a consumer dispute to a 3 letter code. It is then sent to the data furnisher only to be matched and sent back. I have also sent letters to the 3 credit reporting agencies to only have these accounts referenced above verified, of course due to lack of true use of the investigational process.

I openly admit through the SF-86 as well as my testimony today I have had my own encounter with credit problems most of these could have been avoided but the confusion of how the CRA’s had much of my dad’s debt in my credit file, I did not know which accounts were truly mine or not. However I have called all creditors and corrected or created a mutual agreement to address my downfalls. I will go through and explain my resolution of each.

1. Nebraska Furniture Mart Card: Balance $241.00 Paid

2. Military Star Card: Balance $1200.00 Paid

3. Pioneer Loan: Balance $ 170 Paid (Had very good payment history for 3 years before this, this was actually my last payment before the loan was completed which I did not see)

4. Cox Communication: Balance $181.00 Paid (Account was supposed to be made by my roommate)

5. SAC Federal Credit: Balance $ 185.00 Paid (This too had good payment history for 3 years and was my last payment owed)

6. SAC Federal Credit Balance $ 7630, $185 a month Account in payment arrangements (Account is under internal investigation by SAC Federal Credit Union due to lack of proper REPO procedures under Nebraska Law, during this time I was overseas for the military and they did not return my personal items and did not give me 30 days to remedy this account, they also did not give me the information on where and when they sent my car to auction, which is a violation under Nebraska Law. I decided to pay 185.00 a month for the time being to show good effort upon my part to resolve this issue)

7. Judgment, return check: Balance $178.00 Paid

In conclusion you will see I have resolved all of my personal credit problems at this time, I have no pending issues besides the disputes referenced above. You can also see that I currently have establish credit cards and loans which are paid on a timely manner, I also have excellent payment history of 2 years with the same rental company, all utilities and other reoccurring payments are taken care of properly, showing good judgment which were very well noted before and after the time of late 2004 and early 2005. Please reference all other positive attributes in the whole person concept that I have in your decision upon this appeal.