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Summary

The applicant, a 33-year-old veteran and current National Guard member, addressed security concerns under the Financial Considerations guideline by resolving most of his debts. Despite some unresolved debts, the applicant demonstrated financial responsibility and progress in managing his finances, leading to a granted security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The $14,572 charged-off account is owed to NF credit union for a $22,000 personal loan Applicant and his wife took out in 2016 to purchase a used car. They made payments up to the time he left active duty in March 2017. He still has the car. He acknowledged that this is his debt. The debt no longer appears on his CBR, so he has been unable to locate the creditor to work out a settlement (1.a). The $13,127 charged-off account is owed to NF for a loan he took out in 2012 to purchase a 2007 truck. In late 2014, he sold it to another service member, who wrote him a check for the balance due on his loan. That checked bounced and he became responsible for the loan balance. He reported the theft to the police. He has been unable to locate the service member or the necessary documents from the (1.b). The $4,632 charged-off account was owed to CO for a car loan. After the car was voluntarily repossessed, it was immediately sold. Applicant negotiated a settlement for the balance owed and paid it in 2018. (Tr. 33-34; GE 7 at 6) This debt is resolved (1.c). The $4,080 charged-off account was owed to PI for a personal loan that Applicant took out to buy a motorcycle. The debt was paid in March 2021. (Tr. 35-36; AE A at 5) This debt is resolved (1.d). The $3,391 cell phone bill was paid on May 10, 2022. (Tr. 36-37; AE A at 6) This debt is resolved (1.e). The $652 credit card debt was paid on May 15, 2022. (Tr. 38-39; AE A 7) This debt is resolved (1.f). The $341 debt was owed to a company for automobile insurance. It was paid in February 2021. (Tr. 39; GE 7 at 2) This debt is resolved (1.g). The $232 medical bill was paid in February 2021. (Tr. 39; GE 7 at 2) This debt is resolved (1.h). This $163 debt is a duplicate of the credit card debt listed in paragraph 1.f, but references a lesser balance because Applicant had made payments on the debt. It was resolved in May 2022, as noted above (1.i). The $145 medical debt was paid in February 2021. (Tr. 41-42; GE 7 at 2) This debt is resolved (1.j).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Resolved eight out of ten alleged debts, demonstrating financial responsibility; Initiated payment plans for recent debts and showed intent to resolve outstanding obligations; Credible testimony indicated an understanding of financial responsibility and ongoing management of finances.

Why the Applicant Prevailed

• Resolved eight out of ten alleged debts, demonstrating financial responsibility.
• Initiated payment plans for recent debts and showed intent to resolve outstanding obligations.
• Credible testimony indicated an understanding of financial responsibility and ongoing management of finances.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedOct 27, 2020
• Answer filed2020-11-00Undated answer submitted.
• Hearing heldApr 27, 2022Conducted via Microsoft Teams.
• Decision dateJun 24, 2022

Cite For

• Mitigation of Financial Concerns Under Guideline F
• Importance of Demonstrating Financial Responsibility
• Consideration of Circumstances Beyond an Applicant's Control in Financial Matters