Summary
The applicant, a 40-year-old defense contractor, faced security concerns under Guideline F due to nine delinquent debts totaling $37,758. Despite a history of financial difficulties, the applicant demonstrated significant efforts to resolve his debts, including settling or making payment arrangements for seven debts. The judge concluded that the applicant's proactive measures and the resolution of a substantial portion of his debts mitigated the security concerns, resulting in a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owes $15,204 to a loan company for the balance on a repossessed car. He contacted the lender but has not yet resolved the account (1.a). Applicant owes $7,185 to a collector for a credit card debt. He contacted the creditor and arranged a settlement amount of $2,500 payable in $100 monthly installments. He paid two installments to date. This debt is being resolved (1.b). Applicant owes another collector $3,889 for a credit card debt. This debt is not resolved. Applicant contacted the creditor (1.c). Applicant owes $2,676 to a credit card company. He has an installment payment arrangement with the creditor to pay $150 monthly and started doing so in August 2010. This debt is being resolved (1.d). Applicant owes a collector $60 for a phonograph record company membership fee. Applicant claims he paid this debt in May 2010. He has no document to show the debt was paid. Applicant’s volume of debt makes it unlikely he would falsify this miniscule debt. The debt is resolved and will show on his credit report after it is updated (1.e). Applicant owes a collector $251 for a telephone bill. This debt was resolved by payment on August 2, 2010. The creditor submitted written verification of payment (1.f). Applicant owes the military credit card $3,958. He paid this debt. The creditor submitted written verification the debt is resolved (1.g). Applicant owes another debt to the credit card issuer listed in SOR Para. 1.d. This debt is for $3,958. The debt is being resolved by an installment agreement (1.h). Applicant owes a debt collector $822 for two debts owed to a department store. These debts were paid in a settlement agreement in April 2009. The amounts paid were $640.79 and $363.99. These debts are resolved (1.i).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19 (a), AG ¶ 19 (c). The judge applied mitigating conditions AG ¶ 20 (c), AG ¶ 20 (d). The decision turned on the following: The applicant resolved approximately $20,000 of his debts within five months; He demonstrated a proactive approach by contacting creditors and arranging payment plans; Favorable character references supported the applicant's reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant resolved approximately $20,000 of his debts within five months.
- He demonstrated a proactive approach by contacting creditors and arranging payment plans.
- Favorable character references supported the applicant's reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19 (a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19 (c)raisedA History of Not Meeting Financial Obligations
- 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
- 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 issuedApr 23, 2010
- Answer filedMay 11, 2010Applicant requested a decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateSep 29, 2010
Cite For
- Mitigation of Financial Issues Under Guideline F
- Proactive Efforts to Resolve Debts as a Mitigating Factor
- Whole-person Analysis in Security Clearance Decisions