Summary
The applicant, a 44-year-old administrative assistant and retired Army sergeant first class, faced security concerns under Guideline F due to financial difficulties, including multiple delinquent debts. The judge found that the applicant had taken significant steps to manage her debts, including working with a credit counseling agency and maintaining a steady income, ultimately concluding that the applicant mitigated the security concerns and granted her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a charged off credit card account with a bank for $13,701 (1.a). another credit card account with the same bank placed for collection for $11,803 (1.b). a collection account for furniture with a financial company for $4,995 (1.c). a credit card account charged-off for $2,049 (1.d). a judgment on a personal loan for $5,835 (1.e).
The judge granted the clearance. The government raised disqualifying conditions FC DC ¶ 19(a), FC DC ¶ 19(c). The judge applied mitigating conditions FC MC ¶ 20(a), FC MC ¶ 20(b), FC MC ¶ 20(c), FC MC ¶ 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to repay her debts through a structured payment plan with a credit counseling agency; The applicant's financial difficulties were largely due to circumstances beyond her control, including a significant reduction in income after transitioning from military to civilian employment; The applicant's character and reliability were supported by positive evaluations from her military superiors.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay her debts through a structured payment plan with a credit counseling agency.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including a significant reduction in income after transitioning from military to civilian employment.
- The applicant's character and reliability were supported by positive evaluations from her military superiors.
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 and the Individual Acted Responsibly Under the Circumstances
- FC MC ¶ 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 Under 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
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedOct 3, 2008
- Answer filedOct 28, 2008
- Hearing heldFeb 3, 2009Applicant waived the 15-day notice requirement.
- Decision dateFeb 12, 2009
Cite For
- Mitigating Financial Difficulties Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Obligations