Summary
The applicant, a 40-year-old heavy equipment mechanic foreman, faced security concerns under Guideline F (Financial Considerations) due to 14 delinquent debts totaling approximately $43,798. The applicant admitted the allegations and demonstrated significant efforts to resolve these debts, including financial counseling and settlements. The administrative judge concluded that the applicant's financial issues no longer cast doubt on his reliability and granted eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Phone creditor collection account for $3,566 was settled and paid in full in 2021 (1.a). Quick cash collection account for $2,732 was settled and paid in 2021 (1.b). Credit-card charged-off account for $777 was paid in August 2020 (1.c). Phone creditor collection account for $1,018 was settled and paid in full (1.d). Credit union credit-card account was charged off for $9,731, and was settled and paid in full in January 2022 (1.e). Credit union credit-card account was charged-off for $1,286, and was settled and paid in full in January 2022 (1.f). Furniture account was charged off for $4,839, and was settled and paid in September 2021 (1.g). Vehicle lease account was charged off for $16,615. Applicant contacted the creditor and negotiated a settlement of $11,000 to be paid in $250 monthly installments; however, the company refused to provide the settlement terms in writing or submit a change to his credit report (1.h). Credit-card collection account for $2,319 was settled and paid in full in March 2020 (1.i). Five medical accounts totaling $915 were settled and paid in full by August 2021 (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(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant took substantial action to resolve most of his debts; He received financial counseling and adhered to a budget with a positive net monthly remainder; The applicant's financial issues were largely due to circumstances beyond his control, including his spouse's medical condition.
Why the Applicant Prevailed
- The applicant took substantial action to resolve most of his debts.
- He received financial counseling and adhered to a budget with a positive net monthly remainder.
- The applicant's financial issues were largely due to circumstances beyond his control, including his spouse's medical condition.
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(c)appliedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)appliedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedNov 21, 2020
- Answer filedDec 10, 2020
- Hearing heldFeb 2, 2022via video teleconference
- Decision dateJul 18, 2022
Cite For
- Mitigating Conditions Under Guideline F for Financial Issues
- Consideration of Circumstances Beyond the Applicant's Control
- The Importance of Demonstrating a Good-faith Effort to Resolve Debts