Summary
A 42-year-old federal contractor was granted a security clearance despite significant financial issues, which were evaluated under Guideline F (Financial Considerations). The applicant faced allegations of over $114,000 in delinquent debts, including a $103,078 line of credit for a business, a $2,775 delinquent credit account, a $1,249 charged-off credit card debt, and a $7,154 past-due mortgage with a total balance of $307,923. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (b), and (c).
However, the applicant successfully demonstrated that her financial problems stemmed primarily from a divorce, a failed business, and periods of unemployment—circumstances largely beyond her control. She showed a strong commitment to resolving these issues, evidenced by her improving financial situation and proactive steps taken to address the delinquent accounts.
The decision to grant the clearance was supported by mitigating conditions under AG ¶ 20(b), (c), and (d). The applicant established sufficient current income to manage her debts and demonstrated a clear path toward resolving her financial obligations.
Why the Applicant Prevailed
- The applicant established that her financial problems were largely due to circumstances beyond her control.
- She demonstrated a commitment to resolving her financial issues and had sufficient current income to manage her debts.
- The applicant's financial situation was improving, and she had taken steps to address her delinquent accounts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
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 issuedJun 17, 2016
- Answer filedJul 14, 2016
- Hearing heldJan 25, 2017Applicant waived her right to 15 days advanced notice.
- Decision dateDec 22, 2017
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Financial Responsibility Demonstrated Despite Past Issues
- Importance of Current Income in Resolving Financial Problems