Summary
A 30-year-old high school graduate, employed as a customer service representative for a defense contractor, was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed ten separate financial allegations, including charged-off accounts for a credit card ($3,838), a department store ($166), and a car loan ($8,567). Other debts in collection included a utility bill ($167), a credit card ($2,765), medical expenses ($130), a cell phone bill ($1,077), a storage company ($359), and another credit card ($5,836), along with an additional charged-off account for $68.
The judge determined that the applicant's financial difficulties largely stemmed from her former husband's drug and alcohol abuse and associated financial misconduct. Upon discovering these issues, the applicant responsibly divorced her husband.
The decision to grant the clearance was based on several mitigating factors. The applicant demonstrated that her financial problems were beyond her control, made reasonable efforts to manage her finances, and had not incurred new debts since her divorce. Her current financial situation shows she is living within her means and is a high producer at work, leading to the conclusion that she is eligible for access to sensitive information.
Why the Applicant Prevailed
- The applicant demonstrated that her financial issues were primarily due to her former husband's actions, which were beyond her control.
- She has made reasonable efforts to manage her finances and has not incurred additional debts since her divorce.
- The applicant's current financial situation shows she is living within her means and is a high producer at work.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC ¶ 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
- FC MC ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control
- FC MC ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances in such a way as to meet her financial obligations.”
Procedural Posture
- SOR issuedNov 10, 2008
- Answer filedDec 4, 2008
- Hearing heldFeb 5, 2009
- Decision dateMar 4, 2009
Cite For
- Mitigating Circumstances Related to Financial Issues Under Guideline F
- Impact of a Former Spouse's Actions on an Applicant's Financial Responsibility
- Consideration of the Whole Person Concept in Security Clearance Decisions