Summary
A 39-year-old defense contractor employee and Navy veteran was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from Hurricane Katrina, a divorce, and periods of unemployment.
The Statement of Reasons (SOR) detailed several debts, including a $506 cable bill, an $86 telecommunications bill (which was paid), a $4,415 credit card debt for moving expenses, and a $193 credit card debt. Other significant debts included a $37,658 disaster relief loan, a $473 insurance company debt, and a $195 city camera violation. The largest alleged debt was an $86,109 mortgage loan deficiency balance following a house foreclosure.
The judge found that the applicant mitigated the financial concerns. His difficulties were largely due to circumstances beyond his control, and he demonstrated responsible financial behavior by taking significant actions to resolve debts, including repayment plans and disputing credit report inaccuracies. He has not incurred significant delinquent debt since 2013 and is current on all ongoing financial obligations. The security clearance was granted.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including a natural disaster and divorce.
- He has taken significant actions to resolve his debts, including repayment plans and disputing inaccuracies on his credit report.
- The applicant has not incurred significant delinquent debt since 2013 and is current on all ongoing financial obligations.
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 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)appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“A security clearance adjudication is an evaluation of a person’s judgment, reliability, and trustworthiness. It is not a debt-collection procedure.”
Procedural Posture
- SOR issuedDec 11, 2015
- Answer filedFeb 29, 2016
- Hearing heldJul 27, 2016
- Decision dateFeb 22, 2017
Cite For
- Mitigation of Financial Concerns Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Debts Under Guideline F
- Evaluation of Financial Responsibility in Security Clearance Determinations