Summary
The applicant, a 31-year-old defense contractor, faced security concerns under Guideline F due to delinquent debts stemming from circumstances beyond his control, including a head injury and subsequent financial difficulties. He demonstrated a meaningful track record of debt repayment and a plan to resolve remaining debts, leading to the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Debt for $942 (SOR ¶ 1.a). He denied responsibility for this debt (Tr. 27); (1.a). Debt for $125 (SOR ¶ 1.b). He denied responsibility for this debt (Tr. 27); (1.b). Debt for $144 (SOR ¶ 1.c). He denied responsibility for this debt (Tr. 27); (1.c). Credit card debt for $4,058 (SOR ¶ 1.d). Applicant has not paid anything on this debt (Tr. 37-38). The creditor declined to allow a payment plan, and Applicant is saving money to pay this debt with a lump sum payment on September 1, 2009 (Tr. 28-29, 38); (1.d). Credit card debt for $1,320 (SOR ¶ 1.e). Applicant has not paid anything on this debt (Tr. 37-38). The creditor declined to allow a payment plan, and Applicant has saved enough money to pay this debt with a single payment on June 1, 2009 (Tr. 28-29, 38); (1.e). Credit card debt for $24,174 (SOR ¶ 1.f). He said he had been making payments for a longer period than he had documentary evidence showing such payments (Tr. 37). He provided proof of payments on the following dates in the listed amounts: January 31, 2009 for $125; February 28, 2009 for $125; and March 31, 2009 for $150 (Tr. 36; AE E); (1.f). Debt for $536 (SOR ¶ 1.g). He made a payment of February 28, 2009 to settle and pay this debt for $412 (Tr. 25-26, 36; AE D); (1.g). Debt for $612 (SOR ¶ 1.h). Applicant denied owing this debt (Tr. 27). He provided a cancelled check to the creditor to corroborate that he had paid the creditor (Tr. 27, 41). However, he did not retain the documentation, and so he said he would pay the debt again (Tr. 42-45); (1.h).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: The applicant's financial problems were largely due to circumstances beyond his control, including a head injury and subsequent unemployment; He demonstrated a meaningful track record of debt repayment, including payments on several debts and a plan to resolve remaining debts by September 2009; The applicant's overall conduct and intentions indicated reliability and trustworthiness despite past financial issues.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control, including a head injury and subsequent unemployment.
- He demonstrated a meaningful track record of debt repayment, including payments on several debts and a plan to resolve remaining debts by September 2009.
- The applicant's overall conduct and intentions indicated reliability and trustworthiness despite past financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant did not receive financial counseling.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the Applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedOct 16, 2008
- Answer filedNov 18, 2008
- Hearing heldApr 21, 2009
- Decision dateJun 22, 2009
Cite For
- Mitigating Financial Considerations Under Guideline F
- Impact of Circumstances Beyond Control on Financial Obligations
- Demonstrating a Meaningful Track Record of Debt Repayment