Loading case…

Summary

Darlene D. Lokey Anderson, Administrative Judge, granted security clearance to a 32-year-old Aircraft Mechanic with financial issues under Guideline F. The applicant had 17 delinquent debts totaling over $27,000, primarily incurred after losing stable employment post-military service. The judge found that the applicant made a good-faith effort to resolve debts and that the financial difficulties were largely beyond his control.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent credit card debt was charged off in the amount of approximately $4,596. Applicant states that the account was settled for $2,527. Since March 2018, he has been making regular monthly payments of $210.67 that he plans to continue until the debt is paid in full (1.a). A delinquent credit card was charged off in the amount of $3,117. The debt remains outstanding. Applicant intends to pay it once he has resolved other debt. He believes this debt to be the same debt alleged in allegation 1.p (1.b). A debt owed to a creditor for an account that was placed for collection in the approximate amount of $972. The debt was paid in full through garnishment, and his most recent credit report no longer shows it as owing (1.c). A delinquent credit card debt was charged off in the amount of approximately $820. This debt remains outstanding. Applicant intends to pay it once he has resolved other debt (1.d). A debt owed to a University for an account placed for collection in the approximate amount of $677. Applicant is currently making regular monthly payments of $52.07 that he plans to continue until the debt is paid in full (1.e). A debt owed to a creditor for an account placed for collection in the approximate amount of $626. Since March 2018, Applicant has been making regular monthly payments of $52.15 that he plans to continue until the debt is paid in full (1.f). A delinquent cable service account was placed for collection in the approximate amount of $572. The debt is still outstanding. Applicant intends immediately settle the account, and start a payment plan to resolve it (1.g). A delinquent credit card account was charged off in the approximate amount of $435. Applicant tried to pay the debt but the creditor states that they are no longer accepting payments, as the account has been closed. The debt has not been paid (1.h). A delinquent credit card account was charged off in the approximate amount of $349. Applicant states that the creditor is no longer accepting payments, as the account has been closed. The debt has not been paid (1.i). A delinquent credit card account was placed for collection in the approximate amount of $317. Applicant is currently making regular monthly payments of $26.41 that he plans to continue until the debt is paid in full (1.j). A debt owed to creditor for a small loan was placed for collection in the approximate amount of $315. The debt is remains outstanding (1.k). A debt owed to a creditor for a payday loan was placed for collection in the approximate amount of $112. The debt has been paid in full (1.l). A debt owed to a jewelry store for an account placed for collection in the approximate amount of $796. Applicant contends that the creditor has no record of the debt. Applicant’s most recent credit report no longer shows the debt as owing (1.m). A debt owed to a creditor for an account placed for collection in the approximate amount of $9,195. Applicant has no knowledge of the account and is trying to find out more information about it. If it is determined to be his debt, he plans to pay it (1.n). A debt owed to a creditor for an account placed for collection in the approximate amount of $976. This debt is no longer outstanding (1.o). A debt owed to a creditor for an account placed for collection in the approximate amount of $3,342. The debt remains outstanding. Applicant believes the debt to be the same as the debt alleged in allegation 1.b (1.p). A debt owed to a creditor for an account placed for collection in the approximate amount of $137. Applicant has no knowledge of the debt, however it was removed from his credit report by the law firm (1.q).

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(d). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve his debts by contacting creditors and setting up payment plans; The financial difficulties were largely due to circumstances beyond the applicant's control, including unemployment after military service; The applicant has made regular payments on several debts and intends to pay all creditors listed in the SOR.

Why the Applicant Prevailed

• The applicant demonstrated a good-faith effort to resolve his debts by contacting creditors and setting up payment plans.
• The financial difficulties were largely due to circumstances beyond the applicant's control, including unemployment after military service.
• The applicant has made regular payments on several debts and intends to pay all creditors listed in the SOR.

Conditions Referenced

Key Rule Quoted

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

Procedural Posture

• SOR issuedJan 12, 2018
• Answer filedMar 7, 2018
• Hearing heldMay 9, 2018
• Decision dateJul 10, 2018

Cite For

• Good-faith Efforts to Resolve Financial Issues Under Guideline F
• Impact of Circumstances Beyond Control on Financial Considerations
• Application of Mitigating Conditions in Financial Distress Cases