Summary
A 30-year-old former U.S. Navy service member was granted a security clearance under Guideline F (Financial Considerations) despite initial concerns regarding accumulated debts. The Statement of Reasons detailed six specific debts, including amounts owed to Cavalry/Sprint, CitiBank/Dell, Military Star, NationalCredt/Chase, Midland Credit/Citibank, and Defense/DFSA-CL. These debts ranged from $143 to $6,500.
The applicant admitted all allegations and demonstrated a proactive approach to resolving her financial issues, which had largely stemmed from deployments and a period of unemployment. She provided evidence that several debts were paid, one was resolved, and the $6,500 Military Star debt was included in a repayment plan.
The judge found that the applicant had taken significant steps to resolve her debts, including entering a repayment plan with a financial counselor and demonstrating financial responsibility and stable budgeting. Based on these mitigating factors, the security clearance was granted.
Why the Applicant Prevailed
- The applicant admitted all allegations and demonstrated a proactive approach to resolving her financial issues.
- She entered into a repayment plan with a financial counselor to address her debts.
- The applicant provided evidence of her financial stability and responsible budgeting.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.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
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
Key Rule Quoted
“In evaluating Guideline F cases, the Board has previously noted that the concept of ‘meaningful track record’ necessarily includes evidence of actual debt reduction through payment of debts.”
Procedural Posture
- SOR issuedJun 28, 2010
- Answer filedJul 27, 2010
- Hearing heldSep 21, 2010
- Decision dateNov 22, 2010
Cite For
- Demonstrating Financial Responsibility Under Guideline F
- The Importance of a Repayment Plan in Mitigating Financial Concerns
- The Application of the Whole-person Concept in Security Clearance Evaluations