Summary
This case concerns a 47-year-old defense contractor whose security clearance was initially questioned under Guideline F (Financial Considerations) due to delinquent debts totaling $24,306. The Statement of Reasons detailed numerous outstanding obligations, including a $10,000 credit card debt from 2008 being repaid through wage garnishment at over $200 weekly, and several other credit card debts ranging from $295 to $1,477 that were in collection or referred for collection. Additional debts included balances owed to a cable company, an electric utility, a retail charge account, an insurance company, and medical collections.
Despite these financial challenges, the applicant demonstrated significant efforts to resolve his debts. He made substantial progress in repayment, including satisfying a major credit card debt via wage garnishment. He also committed to improved financial responsibility by ceasing credit card use and budgeting with his fiancée's assistance.
Character references further supported his reliability and work ethic. Based on these mitigating factors and the applicant's proactive steps to address his financial issues, the security clearance was GRANTED.
Why the applicant prevailed
- The applicant has made substantial progress in repaying his debts, including a significant credit card debt satisfied through wage garnishment.
- He has shown a commitment to financial responsibility by no longer using credit cards and budgeting with the help of his fiancée.
- The applicant's character references attested to his reliability and work ethic, supporting his trustworthiness for security clearance.
Conditions referenced
- F.3raisedInability to Satisfy Debts
- F.2appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Applicant's Control
- F.3appliedThe Applicant Has Initiated a Good-faith Effort to Repay Overdue Debts
- F.4appliedThe Applicant Has a Reasonable Plan for Repaying Debts
Key rule quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural posture
- SOR issuedDec 21, 2015
- Answer filedJan 21, 2016
- Hearing heldJul 12, 2016
- Decision dateMar 21, 2017
Cite for
- Financial Responsibility and Efforts to Repay Debts Under Guideline F
- Impact of Personal Circumstances on Financial Issues
- Character References Supporting Trustworthiness for Security Clearance