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Summary

The applicant, a 34-year-old former Air Force service member, faced security concerns under Guideline F due to 16 delinquent debts totaling $32,053, primarily stemming from medical expenses related to cancer treatment and periods of unemployment. The applicant successfully demonstrated that she has taken significant steps to resolve her debts, including bringing student loans current and settling several accounts, leading to a decision to grant her security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was alleged to be delinquent on three student loan accounts in the amounts of $9,620; $7,063; and $2,423, as stated in SOR ¶¶ 1.a, 1.b, and 1.c. They became delinquent after she stopped going to school while being treated for cancer (1.a). Applicant was alleged to be indebted for $7,366 for medical debts, as stated in SOR ¶¶ 1.d, 1.f, 1.g, 1.j, 1.k, 1.n, and 1.p. Applicant had health insurance through the U.S. Department of Veterans Affairs (VA) at the time, but the claims were denied by the insurer because they were 'filed outside of the timely filing window,' and one also had an incorrect birthdate in her paperwork. Applicant documented telephonic inquiries she made with these creditors. She credibly averred that the VA resolved the mistakes and the claims are resolved (1.d). Applicant was alleged to be indebted on a charged-off account in the amount of $1,760, as stated in SOR ¶ 1.e. Applicant settled this debt for a payment of $1,000. It is reflected on her November 13, 2017 credit report as 'paid and closed.' (1.e). Applicant was alleged to be indebted to a bank on a charged-off account in the approximate amount of $1,432, as stated in SOR ¶ 1.h. Applicant presented a copy of a cancelled check in this amount, dated December 21, 2017. It is resolved (1.h). Applicant was alleged to be indebted to a collection agency on two accounts in the approximate amount of $949, as stated in SOR ¶ 1.i; and $563, as stated SOR ¶ 1.m. She produced a copy of her bank statement that showed two payments to this creditor totaling $935.22 were made on December 14, 2016. Applicant is resolving these debts (1.i). Applicant was alleged to be indebted to a Government agency on an account in the approximate amount of $724, as stated in SOR ¶ 1.l. It was for an overpayment on Applicant’s tuition when she briefly attended school. Her November 2017 credit report reflected that this account had been delinquent since November 2012, and remained delinquent. Her December 2016 bank statement reflects that she made a $17.36 payment on this debt that month (1.l). Applicant was alleged to be indebted to a retail store on an account in the approximate amount of $153, as stated in SOR ¶ 1.o. This debt was reflected on her October 2015 credit report as having been delinquent since May 2011. Applicant contended she never had a credit account with this store. She testified that she called the store to arrange payment, but it could find no record of her account (1.o).

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). The decision turned on the following: Applicant resolved multiple debts and is actively managing remaining accounts; The circumstances leading to financial difficulties were largely beyond her control, including medical issues and unemployment; Applicant demonstrated a credible plan for debt resolution and has not accumulated new delinquent debts in recent years.

Why the Applicant Prevailed

• Applicant resolved multiple debts and is actively managing remaining accounts.
• The circumstances leading to financial difficulties were largely beyond her control, including medical issues and unemployment.
• Applicant demonstrated a credible plan for debt resolution and has not accumulated new delinquent debts in recent years.

Conditions Referenced

Key Rule Quoted

“In evaluating Guideline F cases, the Board has previously noted that the concept of ‘meaningful track record’ necessarily includes evidence of actual debt reduction through payment of debts.”

Procedural Posture

• SOR issuedNov 8, 2016
• Answer filedDec 22, 2016
• Hearing heldNov 14, 2017
• Decision dateApr 25, 2018

Cite For

• Demonstrating a Credible Plan for Debt Resolution Under Guideline F
• Mitigating Financial Concerns Due to Circumstances Beyond the Applicant's Control
• Establishing a Meaningful Track Record of Debt Management and Resolution