Summary
A 41-year-old machinist and retired U.S. Navy petty officer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited two specific debts. The first was a loan obtained in June 2007, charged off in July 2010, and purchased by a collection agency in May 2012. As of August 2016, this account had an unpaid balance of $21,700, which the applicant had reduced from $24,600 through consistent $100 monthly payments since March 2014. The second debt was a credit card account referred for collection in September 2009 and purchased by a collection agency in May 2012, on which he also made $100 monthly payments since March 2014.
The judge found that the applicant had mitigated the financial concerns. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, but mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
The decision to grant the clearance was based on the applicant's consistent payments, demonstrating a good-faith effort to resolve his financial obligations. His financial difficulties were largely attributed to circumstances beyond his control, specifically unemployment and a marital breakup. The judge concluded that the applicant's financial problems were under control, and he had shown responsible behavior in managing his debts.
Why the Applicant Prevailed
- The applicant made consistent payments on his debts, demonstrating a good-faith effort to resolve financial obligations.
- The financial issues were largely due to circumstances beyond his control, including unemployment and a marital breakup.
- The applicant's financial problems are under control, and he has shown responsible behavior in managing his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, 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(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedMar 25, 2016
- Answer filedApr 20, 2016
- Hearing heldAug 17, 2016
- Decision dateOct 17, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Repay Debts as a Mitigating Factor
- Consideration of the Whole-person Concept in Security Clearance Decisions