Summary
A 33-year-old defense contractor sought a security clearance, which was initially challenged under Guideline F (Financial Considerations) due to multiple delinquent debts. The Statement of Reasons detailed fifteen specific financial allegations. These included four department store debts, two credit card debts, two bank debts, two medical debts, and individual debts for a vacuum cleaner, utility company, satellite television, and telephone services. The total alleged amount across these items was not specified.
The applicant demonstrated significant efforts to resolve these issues. She settled or paid eleven of the fifteen alleged debts, with settlement dates ranging from February to September 2010. For two medical debts, she was actively working with her insurance company. One debt for a vacuum cleaner was disputed as paid, with the applicant indicating she would pay if legitimate. Another bank debt was identified with a plan to pay.
Ultimately, the security clearance was GRANTED. The judge found that the applicant's financial difficulties were largely beyond her control, citing her husband's unemployment and her own temporary unemployment as contributing factors. The applicant's good-faith efforts to resolve her debts, including settling numerous accounts and actively addressing others, were key factors in the decision.
Why the Applicant Prevailed
- The applicant settled or paid eleven of the fifteen debts alleged in the SOR.
- She demonstrated a credible plan to address her remaining debts and was actively working with her insurance company on medical debts.
- The applicant's financial issues were largely due to circumstances beyond her control, including her husband's unemployment and her own temporary 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(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 13, 2010
- Answer filedJul 27, 2010
- Hearing heldSep 15, 2010
- Decision dateOct 14, 2010
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Obligations