Summary
The applicant, a 42-year-old employee of a federal contractor, faced financial allegations under Guideline F. He demonstrated that his financial issues were largely due to circumstances beyond his control and successfully disputed several debts. The judge found that the applicant's financial problems were resolved and under control, granting him security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: an April 2010 judgment filed against him for $419; two over-120-day delinquent debts that were in collection for $19,935 and $1,206 related to a timeshare that he purchased in 2012 and its related maintenance fees; a 2015 medical debt for $261 that he recently paid; and a 2015 collection for $1,212 that he was disputing (1.b). Applicant was unable to rescind the timeshare purchase contract within the allowed period due to high-pressure sales tactics (1.c). The account alleged in SOR 1.d appears to be a duplicate of the account alleged in SOR 1.e (1.d). Applicant disputed the legitimacy of the past-due debt and provided evidence to substantiate the dispute (1.e).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(a), AG ¶ 20(c), AG ¶ 20(e). The decision turned on the following: The applicant's financial problems were largely due to circumstances beyond his control; He successfully disputed several debts, including a judgment that was removed from his credit report; The applicant demonstrated current financial stability and responsible management of debts.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control.
- He successfully disputed several debts, including a judgment that was removed from his credit report.
- The applicant demonstrated current financial stability and responsible management of debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial Counseling
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedMay 28, 2018
- Answer filedOct 10, 2018
- Hearing heldMay 14, 2019
- Decision dateSep 4, 2019
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Successful Dispute of Debts as a Basis for Granting Clearance
- Current Financial Stability as a Factor in Security Clearance Decisions