Loading case…

Summary

The applicant, a 41-year-old former Navy service member, sought a security clearance under Guideline F due to financial considerations involving multiple overdue debts. The judge found that the applicant had made significant progress in addressing his debts and demonstrated financial stability, ultimately granting the security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR in the amount of $383. At the hearing, Applicant testified that this debt has been paid. However, in his post hearing submission, he indicated that this debt has not yet been paid, but it will be paid in the future. I do not find that this debt has yet been resolved or reduced (1.a). This overdue debt is cited in the SOR in the amount of $130. Applicant testified that this debt has been paid. Exhibit E includes a postal money order from Applicant to this creditor in the amount of $137, dated July 29, 2009. I find this debt has been paid (1.b). This overdue debt is cited in the SOR in the amount of $920. Applicant testified that this debt was not paid, but it was removed from his credit report. He averred that he had been disputing this debt with the creditor, and he did not believe it was his debt. However, since no evidence was offered to show that this debt was removed because the creditor agreed with Applicant’s dispute, I cannot find that the debt has been resolved (1.c). This overdue debt is cited in the SOR in the amount of $475. Applicant testified that this debt was not paid, but he intends to pay it in the future (1.d). This overdue debt is cited in the SOR in the amount of $600. Applicant testified that this debt has been paid. Exhibit E includes a letter from this creditor, dated September 25, 2009, showing this debt has been paid. I find this debt has been resolved (1.e). This overdue debt is cited in the SOR in the amount of $326. Applicant testified that this debt was not paid, but he intends to pay it in the future (1.f). This overdue debt is cited in the SOR in the amount of $315. Applicant testified that this debt was not paid, but he intends to pay it in the future (1.g). This overdue debt is cited in the SOR in the amount of $222. Applicant testified that this debt has been paid. Exhibit E includes a report showing that all three debts to this creditor have been paid. I find this debt has been resolved (1.h). This overdue debt is cited in the SOR in the amount of $58. Applicant testified that this debt was not paid, but it was removed from his credit report. He believed it was because this creditor was found to be charging unreasonable late fees and was ordered to cancel these charges. He had no documentation to establish this assertion, so I cannot find that this debt has been resolved (1.i). This overdue debt is cited in the SOR in the amount of $49. Applicant testified that this debt has been paid. Exhibit E includes a report showing that all three debts to this creditor have been paid. I find this debt has been resolved (1.j). This overdue debt is cited in the SOR in the amount of $337. Applicant testified that this debt has been paid. Exhibit E includes a letter from this creditor, dated November 11, 2009, showing this debt has been paid. I find this debt has been resolved (1.k). This overdue debt is cited in the SOR in the amount of $4,192. Applicant testified that this debt and 1.m., below, are for college loans, and he has paid 10 payments of $250 each towards these debts from August 2009 through April 2010. I find that Applicant has reduced 1.l. and 1.m. significantly (1.l). This overdue debt is cited in the SOR in the amount of $4,942. This is reviewed with 1.l., above (1.m). This overdue debt is cited in the SOR in the amount of $1,185. Applicant testified that he has paid $1,800 towards this debt, and it has been resolved. Exhibit E includes a report showing that five payments have been made to this creditor. I find this debt has been resolved (1.n). This overdue debt is cited in the SOR in the amount of $9,353. Applicant testified that this debt was not paid, but he intends to pay it in the future (1.o). This overdue debt is cited in the SOR in the amount of $4,872. Applicant testified that this debt was not paid, but he intends to pay it in the future (1.p). This overdue debt is cited in the SOR in the amount of $9,354. Applicant testified that this debt has been paid. Exhibit E includes a letter from this creditor, dated May 25, 2010, showing that $5,005 was paid toward this debt, with $0 balance. I find this debt has been resolved (1.q). This overdue debt is cited in the SOR in the amount of $250. Applicant testified that this debt was dropped from his credit report, although he did not know why this was done. In Exhibit E, Applicant indicated that this debt has not been paid, but he intends to pay it in the future (1.r). This overdue debt is cited in the SOR in the amount of $90. Applicant testified that this debt has been paid. Exhibit E includes a report showing that three payments of $13.15, $19.46, and $28 were paid to this creditor. I find this debt has been resolved (1.s). This overdue debt is cited in the SOR in the amount of $28. Applicant testified that this debt has been paid. Exhibit E includes a report showing that $28 was paid to this creditor. I find this debt has been resolved (1.t). This overdue debt is cited in the SOR in the amount of $57. Applicant testified that this debt has been paid. Exhibit E includes a letter from this creditor, dated December 18, 2010, showing that this debt had a $0 balance. I find this debt has been resolved (1.u). This overdue debt is cited in the SOR in the amount of $2,064. Applicant testified that this debt was not paid, and despite the fact that it has dropped off his credit report because it is an old debt, he intends to pay it in the future (1.v). This overdue debt is cited in the SOR in the amount of $118. Applicant testified that this debt has been paid. Exhibit E includes a letter from this creditor, showing that $118 was paid toward this debt, with $0 balance. I find this debt has been resolved (1.w). This overdue debt is cited in the SOR in the amount of $158. Applicant testified that this debt has been paid, although he was not certain to whom the debt was owed. He offered no evidence to establish that this debt has been resolved (1.x). This overdue debt is cited in the SOR in the amount of $698. Applicant testified that this debt has been paid. Exhibit E includes a letter from this creditor, dated November 11, 2009, showing that this debt is satisfied in full. I find this debt has been resolved (1.y). This overdue debt is cited in the SOR in the amount of $303. Applicant testified that this debt was dropped from his credit report, although he did not know why this was done. In Exhibit E, Applicant indicated that this debt has not been paid, but he intends to pay it in the future (1.z). This overdue debt is cited in the SOR in the amount of $4,300. Applicant testified that this debt is for a military credit card, and it is being paid by allotment in the amount of $107 a month from his retirement pay. Exhibit E includes a document confirming that an allotment of $107.74 is being withdrawn to pay this creditor (1.aa). This overdue debt is cited in the SOR in the amount of $796. Applicant testified that this debt was dropped from his credit report, although he did not know why this was done. In Exhibit E, Applicant indicated that this debt has not been paid, but he intends to pay it in the future (1.bb). This overdue debt is cited in the SOR in the amount of $4,000. Applicant testified that this debt and 1.dd., below are the same debts as 1.l and 1.m., which have been reviewed above, and appears to be the same debts (1.cc). This overdue debt is cited in the SOR in the amount of $3,500. This is reviewed with 1.cc., above and appears to be the same debt (1.dd). This overdue debt is cited in the SOR in the amount of $768. Applicant testified that this debt was dropped from his credit report, although he did not know why this was done. In Exhibit E, Applicant indicated that this debt has not been paid, but he intends to pay it in the future (1.ee). This overdue debt is cited in the SOR in the amount of $5,000. Applicant testified that this debt has been paid in full by allotment. Exhibit E includes a document confirming that an allotment had been withdrawn to pay this creditor until the debt was $0 (1.ff).

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 significantly reduced his overdue debt from approximately $30,000 to $14,000; He provided evidence of a good-faith effort to repay overdue creditors; The applicant's financial difficulties were largely due to circumstances beyond his control, including unemployment after military service.

Why the Applicant Prevailed

• The applicant significantly reduced his overdue debt from approximately $30,000 to $14,000.
• He provided evidence of a good-faith effort to repay overdue creditors.
• The applicant's financial difficulties were largely due to circumstances beyond his control, including unemployment after military service.

Conditions Referenced

Key Rule Quoted

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

Procedural Posture

• SOR issuedOct 30, 2009
• Answer filedJan 2, 2010
• Hearing heldMay 5, 2010
• Decision dateNov 18, 2010

Cite For

• Mitigation of Financial Concerns Under Guideline F
• Good-faith Efforts to Resolve Debts
• Impact of Personal Circumstances on Financial Stability