Summary
The applicant, a 36-year-old former Coast Guard rescue swimmer, faced financial difficulties due to a career-ending injury and his wife's job loss. Despite several delinquent debts, the applicant demonstrated responsible behavior in addressing his financial issues, leading to the granting of his security clearance under Guideline F.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant satisfied one of the alleged delinquent accounts several years ago (1.a). Applicant has disputed the medical debts, owed in the amounts of $107 and $161, which are listed as delinquent because they were miscoded by the providers (1.b). Applicant has disputed the medical debts, owed in the amounts of $107 and $161, which are listed as delinquent because they were miscoded by the providers (1.c). Applicant claims he satisfied the debt owed in the amount of $1,937, and he submitted verification that a lawsuit filed in an effort to collect that debt was voluntarily dismissed by the creditor (1.d). The debt alleged in SOR subparagraph 1.e, past due in the amount of $45,579, is based on Applicant’s home mortgage (1.e). The debt alleged in SOR subparagraph 1.f arose from defective work performed by a lawn care service and that he has refused to pay for the charge (1.f). The State is now attempting to recoup a portion of unemployment benefits received by Applicant after he was unemployed from January 2007 until July 2007 (1.g).
The judge granted the clearance. The government raised disqualifying conditions DC 19(a). The judge applied mitigating conditions MC 20(a), MC 20(b), MC 20(d), MC 20(e). The decision turned on the following: The applicant's financial problems were largely due to circumstances beyond his control, including a career-ending injury and his wife's job loss; The applicant and his wife acted responsibly to resolve their financial issues, including seeking loan modifications and pursuing further education; The applicant provided plausible explanations for disputed debts and demonstrated a good-faith effort to repay overdue creditors.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control, including a career-ending injury and his wife's job loss.
- The applicant and his wife acted responsibly to resolve their financial issues, including seeking loan modifications and pursuing further education.
- The applicant provided plausible explanations for disputed debts and demonstrated a good-faith effort to repay overdue creditors.
Conditions Referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- MC 20(a)appliedThe Behavior Occurred Under Such Circumstances That It Is Unlikely to Recur
- MC 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- MC 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
- MC 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedJul 26, 2011
- Answer filedAug 28, 2011Applicant requested a hearing and denied all allegations except one.
- Hearing heldDec 5, 2011
- Decision dateJan 26, 2012
Cite For
- Mitigating Circumstances Under Guideline F Due to Financial Difficulties Caused by External Factors
- Good-faith Efforts to Resolve Financial Issues
- Consideration of Military Service and Resulting Disabilities in Security Clearance Decisions