Summary
A 47-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant admitted to several debts totaling $36,985, which included $1,200 in delinquent state taxes from 2013, an $8,009 charged-off automobile loan, and a $14,993 collection account that was also listed as a $12,783 charged-off personal loan. The collection account was subsequently deleted from his credit report, and he established a payment plan for the personal loan in 2018 at $100 per month.
Disqualifying conditions were raised under Adjudicative Guidelines (AG) ¶ 19(a), (c), and (f). However, the administrative judge applied mitigating conditions under AG ¶ 20(b), (d), and (g), noting the applicant's proactive efforts. He made an informal payment arrangement with his sister-in-law for the auto loan and attributed the tax error to his first attempt at self-filing.
The clearance was granted because the applicant demonstrated a commitment to financial responsibility by establishing and adhering to payment plans, retaining a credit repair company, and making timely payments. His financial difficulties were also found to be largely due to circumstances beyond his control, such as a job relocation and family medical issues.
Why the applicant prevailed
- The applicant established a plan to resolve his debts and demonstrated a commitment to financial responsibility.
- He made timely payments on his payment plans and retained a credit repair company to improve his credit.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including a job relocation and family medical issues.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal State, or Local Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedIndividual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key rule quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of the national security.”
Procedural posture
- SOR issuedSep 6, 2018
- Answer filed—
- Hearing heldAug 16, 2019Hearing convened as scheduled.
- Decision dateJun 11, 2020
Cite for
- Mitigation of Financial Issues Under Guideline F
- Demonstrating a Commitment to Financial Responsibility
- Consideration of Circumstances Beyond the Applicant's Control in Financial Matters