Summary
A 59-year-old technician employed by a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited four charged-off or collection accounts totaling $32,105. Specifically, these included a bank credit card collection account for $12,784, which the applicant settled for $7,000 in July 2014. Another charged-off bank credit card account for $5,248 was being paid down with $467 monthly payments, reducing the balance to approximately $930 by May 2015.
Additionally, a charged-off bank credit card account for $13,564 had a settlement offer of $8,138 from January 14, 2015. The final account, a charged-off bank credit card for $509, was settled on September 23, 2014, with a payment of $333.
The decision to grant the clearance was based on several mitigating factors. The applicant demonstrated that his financial difficulties stemmed largely from circumstances beyond his control, such as significant losses from real estate investments and his spouse's inability to work. He also showed a good-faith effort to resolve his debts, having settled two accounts and established a payment plan for others. The judge concluded that the applicant's financial situation was now under control, with no current delinquent debts, leading to the granted security clearance.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control, including a significant real estate market decline.
- The applicant demonstrated a good-faith effort to resolve his debts, having paid two debts in full and established a payment plan for the remaining debts.
- The applicant's financial situation is under control, with no current delinquent debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
Key Rule Quoted
“Eligibility for access to classified information is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 6, 2014
- Answer filedSep 18, 2014
- Hearing heldMay 14, 2015
- Decision dateJun 9, 2015
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of External Circumstances on Financial Stability