Summary
A 37-year-old database developer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant had approximately $26,000 in debt owed to nine creditors, with some debts stemming from identity theft. Specific allegations included a vehicle down payment and repossession where the applicant was a cosigner, an original telephone debt, bank and department store credit card debts, a VISA credit card, and an electronics store credit card, some of which were with collection firms.
Disqualifying conditions F.19(a) and F.19(c) were raised. However, the judge applied mitigating conditions F.20(d), F.20(a), F.20(e), F.20(b), and F.20(c). The applicant had already paid three debts, was actively negotiating settlements for two others, and disputed four of the alleged debts.
The clearance was granted because the applicant demonstrated a good-faith effort to repay and resolve his overdue creditors. It was also noted that identity theft contributed to his financial difficulties. Furthermore, the applicant possessed sufficient income and savings to manage his financial obligations, leading to the determination that the financial concerns were mitigated.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
- The applicant was a victim of identity theft, which contributed to the financial issues.
- The applicant has sufficient income and savings to manage his financial obligations.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem and Provides Documented Proof to Substantiate the Basis of the Dispute or Provides Evidence of Actions to Resolve the Issue
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- F.20(c)appliedThe 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
Key Rule Quoted
“A person’s relationship with his creditors is a private matter until evidence is uncovered demonstrating an inability or unwillingness to repay debts under agreed upon terms.”
Procedural Posture
- SOR issuedApr 10, 2007
- Answer filedJun 18, 2007
- Hearing heldAug 29, 2007
- Decision dateSep 25, 2007
Cite For
- Mitigating Factors Related to Identity Theft Under Guideline F
- Good-faith Efforts to Resolve Financial Obligations
- Impact of Financial Management on Security Clearance Eligibility