Summary
A 31-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several delinquent debts totaling over $21,000. These included a credit card debt of $8,464, which was later settled for $2,539, and another delinquent debt of $4,810 that was placed into a debt management program. Additionally, the applicant had a resolved medical debt of $288, another resolved delinquent debt of $145, and a duplicate defaulted student loan of $570. Two other sets of defaulted student loans, totaling $3,555 and $1,397 respectively, were also resolved.
Disqualifying conditions under Adjudicative Guideline Paragraphs 19(a) and 19(c) were raised due to these financial issues. However, the applicant successfully demonstrated mitigating conditions under Adjudicative Guideline Paragraphs 20(a), 20(b), and 20(d).
The decision to grant the clearance was based on the applicant's good faith efforts to resolve his debts through a debt management program and significant payments made towards his obligations. The judge also noted that the financial issues were largely attributable to circumstances beyond the applicant's control, such as periods of unemployment. Ultimately, the applicant was found to have mitigated the financial concerns, and eligibility for a security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a good faith effort to resolve his debts through a debt management program.
- He made significant payments towards his delinquent debts, including resolving a medical debt and settling a credit card debt.
- The applicant's financial issues were largely due to circumstances beyond his control, such as periods of unemployment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- 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(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance adjudication is not a debt-collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedAug 13, 2018
- Answer filedAug 24, 2018
- Hearing heldDec 19, 2018
- Decision dateFeb 28, 2019
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good Faith Efforts in Debt Management Programs
- Whole-person Concept in Security Clearance Evaluations