Summary
This case concerns a 47-year-old customer service representative whose security clearance was initially questioned under Guideline F (Financial Considerations) due to several delinquent accounts. The Statement of Reasons cited a $5,000 judgment for a defaulted MasterCard from 2007, a seriously delinquent Discover Card account settled for $2,500, and two department store accounts, one currently in repayment for $135 and another paid for $274. Additionally, a creditor account was in repayment for $228, a mortgage was $986 past due but current on payments, and two accounts—a creditor account for $169 and a medical collection for $73—were in dispute.
The applicant's financial difficulties were attributed to circumstances beyond her control, specifically her ex-husband's failure to pay child support and increased mortgage payments. Despite these challenges, she demonstrated responsible financial management. She successfully negotiated settlements for her delinquent debts, including a $4,500 settlement for the credit card judgment and the $2,500 settlement for the Discover Card.
The applicant also worked with a credit counseling organization and maintained timely payments on her current obligations, demonstrating a commitment to resolving her financial issues and living within her means. Based on these mitigating factors, the applicant's security clearance was GRANTED.
Why the Applicant Prevailed
- Applicant successfully negotiated settlements for her delinquent debts, including a $4,500 settlement for a credit card judgment and a $2,500 settlement for another credit card account.
- She demonstrated responsible financial behavior by working with a credit counseling organization and maintaining timely payments on her current obligations.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including her ex-husband's failure to pay child support and emergency medical expenses.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(b)appliedConditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
- FC MC 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 Control
- FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 3, 2009
- Answer filedUndated
- Hearing heldJun 23, 2009
- Decision dateJul 31, 2009
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Successful Negotiation of Debt Settlements as a Factor in Granting Clearance
- Whole Person Concept Applied in Financial Considerations Cases