Summary
The applicant, a 36-year-old male with a history of financial difficulties, sought a security clearance under Guideline F due to delinquent debts totaling approximately $9,341. The judge found that the applicant had taken steps to address his financial issues, including negotiating payment plans with creditors and demonstrating a commitment to resolving his debts. Ultimately, the judge concluded that the applicant mitigated the security concerns and granted the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This $5,359 debt arose after Applicant started an on-line shopping site. After working in the business for one month, he decided that he did not want to continue the business and returned all supplies. He attempted to settle the matter with the creditor and does not believe that he owes said amount. The correct amount is $4,098 as alleged in ¶ 1.n, which is a duplicate debt. It is unresolved (1.a). The $85 debt is owed to a storage company since March 2007. He contacted the creditor for an invoice three weeks ago, in order to pay the debt. He has not received a response. The debt is unresolved (1.b). The $428 debt is owed to a cellular phone company. He called the company to set up an installment payment plan. The company demanded payment in full. He intends to begin sending small payments in the future. The debt is unresolved (1.c). The $539 debt is owed to a bank for a duplicate salary payment he received from a previous employer. In November 2009, he worked out a settlement for $269, consisting of six monthly payments of $44. He has not sent a payment to date. The debt is unresolved (1.d). The $316 debt is owed to a credit card company. He negotiated a settlement for $221. He agreed to make monthly payments to pay off the $114 balance, and transfer the remaining $107 balance to a new credit card that he will promptly pay. He sent the creditor $40. The debt is being resolved (1.e). The $481 debt is owed to a credit card company. He contacted the creditor about making a future payment arrangement within 30 days. The debt is unresolved (1.f). Applicant denied the $419 debt owed to a former apartment complex. He lived there but claims he paid the debt in 2001 or 2002. The new owner of the complex asserted that it did not have a record of the payment. He disputed the debt in late 2009 and it was re-affirmed on the February 2009 CBR. However, it does not appear on the August 2009 CBR. The debt appears to be resolved (1.g). The $423 debt is owed to a jewelry company. Applicant claims he never purchased jewelry from that store and disputed the debt with the credit bureau. The debt was re-affirmed on the February 2009 CBR, but does not appear on an October 2009 CBR. The debt is unresolved (1.h). The $117 debt is owed for medical services he received. He made a $10 payment on the bill. The debt is being resolved (1.i). The $1,317 debt was owed to a cellular company. He contacted the company which agreed to bi-monthly payments of $50 that he will begin within 60 days. The debt is unresolved (1.j). The $420 debt is owed to a creditor for a cash advance. He contacted the company to set up a $40 monthly repayment plan that he will begin within 60 days. The debt is unresolved (1.k). The $492 debt is owed to a bank for unpaid checks that his former wife wrote. He will pay this debt through monthly payments after paying other debts. The debt is unresolved (1.l). The $301 debt is owed to a bank for unpaid checks written by his former wife. He intends to pay them after he pays other debts. The debt is unresolved (1.m). This $4,098 debt is a duplicate of the debt alleged in ¶ 1.a (1.n).
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(c), AG ¶ 20(e). The decision turned on the following: The applicant demonstrated a commitment to resolving his financial issues by negotiating payment plans with creditors; He provided evidence of improved financial management since obtaining employment with a defense contractor; The applicant's supervisor attested to his reliability and performance at work.
Why the Applicant Prevailed
- The applicant demonstrated a commitment to resolving his financial issues by negotiating payment plans with creditors.
- He provided evidence of improved financial management since obtaining employment with a defense contractor.
- The applicant's supervisor attested to his reliability and performance at work.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Counseling or Evidence of Problem Resolution
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 22, 2009
- Answer filedNov 20, 2009
- Hearing heldFeb 24, 2010
- Decision dateMar 4, 2010
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of the Whole-person Concept in Security Clearance Decisions
- Impact of Employment on Financial Stability and Security Clearance Eligibility