Summary
A 38-year-old human resource specialist with a degree in health care administration was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several delinquent debts, including a $6,293 bank credit card, a $773 past-due bank credit card, a credit union credit card charged off for approximately $8,637, another bank credit card past due for about $350, and $24,899 in past-due mortgage payments on a $161,000 mortgage.
These financial difficulties were largely attributed to circumstances beyond the applicant's control, specifically unemployment and a job downgrade. The judge noted that the applicant demonstrated a good-faith effort to resolve these issues.
Mitigating conditions were applied, recognizing that the applicant acted responsibly by notifying creditors, negotiating payment plans, and establishing a meaningful track record of debt payment. The applicant settled some debts and established payment plans for others, leading to the determination that the security clearance should be granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay her debts and resolve financial issues.
- The financial difficulties were largely due to circumstances beyond her control, including job loss and salary reduction.
- The applicant established a meaningful track record of debt payment and acted responsibly by notifying creditors and negotiating payment plans.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- AG ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve Debts
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 18, 2010
- Answer filedOct 23, 2010
- Hearing heldMay 2, 2011Applicant waived the 15-day notice requirement.
- Decision dateAug 4, 2011
Cite For
- Mitigating Conditions for Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Financial Issues
- Impact of Circumstances Beyond Control on Financial Responsibility