Summary
The applicant, a 36-year-old employee of a defense contractor, faced security concerns under Guideline F due to financial difficulties stemming from economic downturns and personal health issues. Despite a history of delinquent debts, the applicant demonstrated significant improvement in her financial situation, including repayment arrangements and increased income, leading to the granting of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This is a state tax lien in the amount of $1,094, which arose from Applicant’s inability to fully pay her 2009 income tax. When she learned of the lien, she set up a repayment arrangement, and the lien was paid off and released in November 2015, months before the SOR was issued. Department Counsel conceded that the lien has been released. The account has been resolved (1.a). This is a state tax lien in the amount of $4,492, which arose when the state erroneously presumed that Applicant was still a resident of the state in 2012. When she learned of the lien, she challenged it, and after furnishing information to the satisfaction of the state, the tax lien was released as having been recorded in error. Department Counsel conceded that the lien has been released. The account has been resolved (1.b). This is a bank credit card account with a $2,500 credit limit and a high credit of $3,216 that was placed for collection and sold to a debt purchaser. The new creditor increased the unpaid balance to $3,391. In June 2014, the new creditor offered to settle the account for $2,712.78. While no payments have been made at this time, Applicant expected to move the account higher on her priority list, and she intends to try to settle the account in mid-2016. The account has not been resolved (1.c). This is an automobile loan account opened in 2008 with a high credit of $17,000 and past due and remaining balance of $9,446 that was placed for collection in 2010. Applicant contacted the lender several times to explain her financial difficulties, but no arrangements could be worked out, so she voluntarily relinquished the vehicle. The lender never furnished Applicant any documentation regarding the result of the voluntary repossession, and she has no knowledge if the vehicle was sold at auction or if there is actually a pending balance. Applicant has not followed up on the status of the account since she relinquished the vehicle. However, if there is a remaining balance, she intends to pay it off as the account is number three on her priority list. The account has not been resolved (1.d). This is a bank credit card account, primarily used for business, with a credit limit of $11,000 and an unpaid balance of $12,980 that was charged off. Applicant attempted to modify her payment arrangements but was unable to do so, and her efforts and payments ceased in about July 2010. She intends to pay the account off as it is number four on her priority list. The account has not been resolved (1.e). This is a bank credit card account with a credit limit of $15,000 and an unpaid balance of $14,761 that was charged off. Applicant attempted to modify her payment arrangements but was unable to do so, and her efforts and payments ceased in about July 2010. She intends to pay the account off as it is number five on her priority list. The account has not been resolved (1.f). This is an unspecified type of account with a remaining and past-due balance of $8,982 that was sold to a debt purchaser. The original creditor has not been identified. Although Applicant has made no effort to contact the original creditor of the debt purchaser, she intends to pay the account off as it is number two on her priority list. The account has not been resolved (1.g).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant took proactive steps to address her financial issues, including establishing repayment arrangements with creditors; She demonstrated a significant increase in her income and improved financial management skills; The applicant resolved several delinquent accounts and showed a commitment to addressing remaining debts.
Why the Applicant Prevailed
- The applicant took proactive steps to address her financial issues, including establishing repayment arrangements with creditors.
- She demonstrated a significant increase in her income and improved financial management skills.
- The applicant resolved several delinquent accounts and showed a commitment to addressing remaining debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Was Not Recent
- AG ¶ 20(b)appliedThe Individual Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(c)appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(d)appliedThe Individual Has a Reasonable Basis to Expect to Be Able to Satisfy Debts
Key Rule Quoted
“Eligibility for a security clearance and access to classified information is granted.”
Procedural Posture
- SOR issuedDec 4, 2015
- Answer filedDec 18, 2015
- Hearing heldMay 17, 2016
- Decision dateNov 9, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F
- Demonstrating Good Faith Efforts to Resolve Debts
- Improvement in Financial Stability as a Basis for Granting Security Clearance