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Summary

The applicant, a 36-year-old electronics technician with a history of financial difficulties, faced security clearance concerns under Guideline F due to numerous delinquent debts. The applicant demonstrated significant efforts to resolve these debts, including paying off or disputing many of them, and received financial management assistance from his wife. The judge granted the security clearance, finding that the applicant's current financial situation did not cast doubt on his reliability or trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a collection account for $3,666 (1.a). a cable company debt in collection for $255 (1.b). a debt in collection for $912 (1.c). a debt for tax service for $90 (1.d). three medical accounts in collection by the same creditor for $332 (1.e). a collection account for a loan for $801 (1.f). a collection account for $1,629 (1.g). a collection account on a loan for $1,069 (1.h). two credit card debts in collection to the same credit card company for $11,553 (1.i). two credit card debts in collection to the same credit card company for $4,564 (1.j). a collection account on a telephone debt for $378 (1.k). a cable debt in collection for $264 (1.l). three medical debts in collection to the same creditor for $394 (1.m). three medical debts in collection to the same creditor for $489 (1.n). a cable company debt in collection for $255 (1.o). three medical accounts in collection by the same creditor for $134 (1.p). three medical accounts in collection by the same creditor for $332 (1.q). an account in collection for leased furniture and appliances for $3,051 (1.r). a pay day loan in collection for $462 (1.s). a telephone company debt in collection for $1,405 (1.t). three medical debts in collection to the same creditor for $903 (1.u). three medical debts in collection to the same creditor for $373 (1.v). a military exchange credit card past due more than 120 days for $2,029 (1.w). charged with uttering a fraudulent check for an amount under $500 (1.x).

The judge granted the clearance. The government raised disqualifying conditions FC DC AG ¶ 19(a), FC DC AG ¶ 19(c), FC DC AG ¶ 19(e). The judge applied mitigating conditions FC MC AG ¶ 20(a), FC MC AG ¶ 20(b), FC MC AG ¶ 20(c), FC MC AG ¶ 20(d), FC MC AG ¶ 20(e). The decision turned on the following: The applicant has paid or resolved a majority of his delinquent debts; The applicant is receiving financial management counseling from his wife, which has led to improved financial responsibility; The applicant has made good-faith efforts to repay overdue creditors and has a plan to continue addressing remaining debts.

Why the Applicant Prevailed

• The applicant has paid or resolved a majority of his delinquent debts.
• The applicant is receiving financial management counseling from his wife, which has led to improved financial responsibility.
• The applicant has made good-faith efforts to repay overdue creditors and has a plan to continue addressing remaining debts.

Conditions Referenced

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 29, 2009
• Answer filedNov 14, 2009
• Hearing heldApr 8, 2010
• Decision dateJun 3, 2010

Cite For

• Financial Responsibility and Management Under Guideline F
• Good-faith Efforts to Resolve Debts
• Impact of Spousal Support on Financial Management