Summary
The applicant, a 63-year-old retired Army Colonel, faced security concerns under Guideline F due to past-due debts resulting from a significant income drop. He demonstrated a good-faith effort to address these debts, leading to a favorable decision for security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admits that he had a past-due debt to Creditor A in the amount of about $19,541. Applicant has begun to make $50 payments towards this debt, which is listed as past-due in the amount of $10,701 on his May 2017 credit report (1.a). Applicant admits that he had a past-due debt to Creditor B in the amount of about $19,666. Applicant has begun to make $25 payments towards this debt, to the satisfaction of the successor creditor to this debt (1.b). Applicant admits that he had a second past-due debt to Creditor B in the amount of about $25,096. Applicant has also begun to make $25 payments towards this debt, to the satisfaction of the successor creditor to this debt (1.c). Applicant admits that he had a third past-due debt to Creditor B in the amount of about $7,422. Applicant has also begun to make $25 payments towards this debt, to the satisfaction of the successor creditor to this debt (1.d). Applicant admits that he had a past-due debt to Creditor E in the amount of about $2,376. Through counsel, Applicant is making a good-faith effort to ascertain the successor creditor to this debt, which is listed as past-due in the amount of $677 on his May 2017 credit report (1.e). Applicant admits that he had a past-due debt to Creditor F in the amount of about $3,139. Through counsel, Applicant has settled this debt, which is not listed as past-due on his May 2017 credit report (1.f). Applicant denies that he had a past-due debt to Creditor G in the amount of about $1,225. He avers that he settled this debt; and furthermore, it does not appear on his May 2017 credit report (1.g).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant made a good-faith effort to address all admitted past-due debts; The financial issues were largely due to circumstances beyond the applicant's control, specifically a significant reduction in income; The applicant settled the disputed debt and provided evidence of payments towards other debts.
Why the Applicant Prevailed
- The applicant made a good-faith effort to address all admitted past-due debts.
- The financial issues were largely due to circumstances beyond the applicant's control, specifically a significant reduction in income.
- The applicant settled the disputed debt and provided evidence of payments towards other debts.
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)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 24, 2017
- Answer filedMar 13, 2017
- Hearing held—Decided on the written record without a hearing.
- Decision dateMar 30, 2018
Cite For
- Good-faith Efforts to Resolve Financial Issues Under Guideline F
- Impact of Unforeseen Circumstances on Financial Stability
- Settlement of Disputed Debts as a Mitigating Factor