Summary
The applicant, a 56-year-old claims auditor for a defense contractor, faced trustworthiness concerns under Guideline F due to financial difficulties stemming from her husband's departure in 1999, which led to reliance on credit cards and subsequent delinquencies. The applicant demonstrated a commitment to resolving her debts through repayment plans and debt consolidation efforts, ultimately leading to the granting of her eligibility for a public trust position.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This is a credit card with a $13,200 credit limit and a past-due balance of $13,904 that was placed for collection. In October 2013, $15,238 was charged off. Some payments were made through the debt consolidation, settlement, and payment organization in 2013, but they eventually stopped. Applicant subsequently contacted the collection agent to establish a repayment plan, and under that plan, with the initial payment of $100 made in March 2016, commencing in April 2016, she has made monthly payments of $200. In July 2016, the collection agent noted that the remaining balance had been reduced to $13,004.82, and it offered Applicant a settlement of $5,000 to resolve the account. It is unclear if Applicant accepted the offer or if she simply continues to make her monthly payments. The account is in the process of being resolved (1.a). This is a bank credit card with a $1,000 credit limit and unpaid and past-due balance of $1,031 that was placed for collection. Applicant contacted the collection agent to establish either a settlement agreement or a repayment plan, and both were achieved. Under the settlement agreement, the balance was reduced to $515.69, and Applicant made an initial payment of $91.67 in March 2016. Applicant was obligated to make four monthly payments of $106, for a total of $424, and the remainder would be forgiven and the account satisfied. She made those four payments. The account has been resolved (1.b). These are medical accounts for professional services received by Applicant or her daughters with unpaid balances of $438, $55.60, and $93.60 that were placed for collection. Applicant was not aware of the outstanding balances until she saw them in her credit report because she has health insurance. She contacted the collection agents to set up repayment plans. Using her debit card, Applicant paid one collection agent $55.60 and $93.60 on March 15, 2016, and the other collection agent $438 the following day. The accounts have been resolved (1.c).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions 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 plans with creditors; She resolved multiple delinquent accounts and demonstrated a commitment to financial stability; The applicant's financial problems were largely due to circumstances beyond her control, and she has shown responsible behavior in managing her debts.
Why the Applicant Prevailed
- The applicant took proactive steps to address her financial issues, including establishing repayment plans with creditors.
- She resolved multiple delinquent accounts and demonstrated a commitment to financial stability.
- The applicant's financial problems were largely due to circumstances beyond her control, and she has shown responsible behavior in managing her 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(c)appliedEvidence That the Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedEvidence Shows the Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”
Procedural Posture
- SOR issuedFeb 28, 2016
- Answer filedMar 14, 2016
- Hearing heldJul 14, 2016
- Decision dateAug 11, 2016Record closed after additional documents submitted.
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond an Applicant's Control in Financial Matters
- Good-faith Efforts to Resolve Debts as a Mitigating Factor