Summary
A 31-year-old administrative specialist was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited three past due credit card accounts totaling $34,000. Specifically, one account had a past due balance of $27,708, exceeding its $10,000 credit limit, while two other accounts had additional charges of $2,788 and $3,531, respectively. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
However, the applicant successfully mitigated these concerns by demonstrating a commitment to resolving her financial issues. She has been making consistent monthly payments on her past due debts and has maintained timely payments on all current financial obligations.
The judge found that the applicant's financial problems were incurred many years ago, and her subsequent responsible financial behavior, including improved financial management, satisfied mitigating conditions under AG ¶ 20(a), AG ¶ 20(c), and AG ¶ 20(d). Consequently, the security clearance was granted.
Why the Applicant Prevailed
- The applicant has been making monthly payments on her past due debts, demonstrating a commitment to resolving her financial issues.
- She has not been late on any current financial obligations, indicating improved financial management.
- The applicant's financial problems were incurred many years ago, and she has shown responsible behavior in managing her finances since then.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurWhile the debts were incurred many years ago, the applicant's past failures to pay do cast some doubt on her current reliability.
- AG ¶ 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 ControlThe applicant has shown clear indications that her financial problems are being resolved through timely payments.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant is making consistent payments on her past due debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances so as to meet her financial obligations.”
Procedural Posture
- SOR issuedOct 3, 2008
- Answer filedOct 17, 2008
- Hearing heldApr 22, 2009
- Decision dateJul 22, 2009
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Importance of Demonstrating a Plan to Resolve Financial Issues
- Consideration of the Whole Person Concept in Security Clearance Decisions