Summary
The applicant, a 59-year-old employee of a DOD contractor, sought to maintain her security clearance under Guideline F due to financial considerations. Despite having several delinquent accounts, the applicant demonstrated that her financial difficulties were largely due to circumstances beyond her control, including her husband's health issues and the economic downturn. The judge found that the applicant acted responsibly in managing her debts and granted her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: charged-off mortgage account in the amount of $127,889 (1.a). charged-off credit card account in the amount of $1,575 (1.b). $706 charged-off credit card account (1.c). $69 account placed for collection (1.d). $2,192 judgment filed in 2011 on behalf of a bank (1.e). $2,832 judgment filed against Applicant’s husband’s company in 2013 (1.f). $195 charged-off cell phone account (1.g). $133,164 mortgage account placed for collection (1.h).
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(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant's financial issues were largely due to circumstances beyond her control, including her husband's health problems and economic downturns; The applicant demonstrated a good-faith effort to resolve her debts, including payment agreements and settlements; The applicant's recent credit report showed progress in managing her debts, indicating responsible financial behavior.
Why the Applicant Prevailed
- The applicant's financial issues were largely due to circumstances beyond her control, including her husband's health problems and economic downturns.
- The applicant demonstrated a good-faith effort to resolve her debts, including payment agreements and settlements.
- The applicant's recent credit report showed progress in managing her debts, indicating responsible financial behavior.
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(a)appliedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The administrative judge’s over-arching adjudicative goal is a fair, impartial and commonsense decision.”
Procedural Posture
- SOR issuedApr 10, 2017
- Answer filedJun 21, 2017
- Hearing heldFeb 1, 2018
- Decision dateFeb 12, 2018
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Financial Obligations
- Whole-person Concept in Evaluating Security Clearance Eligibility