Summary
The applicant, a 26-year-old employee of a defense contractor, sought a security clearance under Guideline F due to financial considerations. Despite a history of financial delinquencies, the applicant demonstrated significant efforts to address her debts and improve her financial situation, leading to a decision to grant her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Telephone service $690 Collection. No action taken. Unpaid, but intends to pay (1.a). Store credit card $1,838 Collection. Negotiated. PAID OFF (1.b). Credit card $4,086 Charged off. Attempted negotiations. Unpaid, but intends to pay (1.c). Automobile loan $2,317 Repossession. Collection. Charged off. Negotiated. PAID $1,100 & payment plan accepted (1.d). Medical $103 Collection. MEDICAID bill. Unpaid, but intends to pay (1.e). Credit card $1,564 Collection. Negotiated. First of 3 payments made under PAYMENT PLAN (1.f). Store credit card $1,307 Collection. Negotiated. PAID OFF (1.g). Credit card $1,298 Collection. Disputed as part of father’s bankruptcy (1.h). Store charge account $3,790 Delinquent over 180 days. Disputed. Unpaid, but intends to pay (1.i). Payday loan $253 Collection. Charged off. PAID OFF (1.j). Medical $495 Collection. MEDICAID bill. Unpaid, but intends to pay (1.k). Credit card $1,306 Collection. Negotiated PAYMENT PLAN. Unpaid (1.l). Credit card $1,689 Collection. Disputed as duplicate of SOR ¶ 1.l (1.m). Medical $37 Collection. MEDICAID bill. Unpaid, but intends to pay (1.n). Mobile telephone service $335 Collection. Unpaid, but intends to pay (1.o). Store credit card $1,133 Collection. Disputed. Unpaid, but intends to pay (1.p).
The judge granted the clearance. The government raised disqualifying conditions F.3. The judge applied mitigating conditions F.2, F.3. The decision turned on the following: The applicant took proactive steps to address her financial delinquencies by negotiating payment plans with creditors; She sought financial counseling and began making payments on her debts, demonstrating a commitment to financial responsibility; The applicant's performance at work was rated as 'exceptional,' indicating reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant took proactive steps to address her financial delinquencies by negotiating payment plans with creditors.
- She sought financial counseling and began making payments on her debts, demonstrating a commitment to financial responsibility.
- The applicant's performance at work was rated as 'exceptional,' indicating reliability and trustworthiness.
Conditions Referenced
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.2appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person's Control
- F.3appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“"A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence."”
Procedural Posture
- SOR issuedAug 20, 2008
- Answer filedSep 20, 2008Applicant responded to SOR allegations.
- Hearing heldJan 27, 2009Hearing conducted with evidence presented.
- Decision dateMar 31, 2009
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Repay Debts
- Impact of Personal Responsibility on Security Clearance Decisions