Summary
A 38-year-old defense contractor employee's security clearance was granted despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 20 delinquent debts totaling $26,848. Specific debts included two apartment leases, one for $1,222 and another for $4,315, with the latter having a settlement offer of $3,600. Other debts included a $45 charge for pizza due to an insufficient funds check, a $356 telecommunications account, a $1,330 judgment from 2006 emergency room treatment, and a $228 medical bill from an emergency room visit.
Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised. However, the applicant demonstrated significant mitigating factors. She established payment plans for most of her debts and made consistent payments on several accounts. She also sought financial counseling and developed a budget to manage her finances effectively.
The decision to grant the clearance was based on the finding that her financial difficulties were largely due to circumstances beyond her control, specifically periods of unemployment. The applicant's proactive steps to address her debts and improve her financial stability, combined with the external factors contributing to her issues, led to the application of mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e), resulting in the granting of her security clearance.
Why the Applicant Prevailed
- The applicant established payment plans for most of her debts and made payments on several accounts.
- She received financial counseling and created a budget to manage her finances.
- The applicant's financial issues were largely due to circumstances beyond her control, including periods of unemployment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate sufficient adherence to her obligations in the first year after receiving her current employment.
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedMay 28, 2009
- Answer filedJun 22, 2009
- Hearing heldOct 23, 2009
- Decision dateNov 2, 2009
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Unemployment
- Establishment of Payment Plans as a Factor in Granting Security Clearance
- Consideration of Financial Counseling in Security Clearance Decisions