Summary
This case concerns a 41-year-old field terminal operator and Army veteran whose security clearance was initially questioned under Guideline F (Financial Considerations). The Statement of Reasons cited seven delinquent accounts totaling $90,167. These included a telecommunications debt for $385, two collection accounts for $668 and $1,994, and a $10,261 debt to the Defense Finance and Accounting Office. Additionally, there was a $14,480 collection account from a repossessed vehicle, a $17,279 deficiency balance after a foreclosure, and a $45,100 second mortgage collection account.
Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised. However, the judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). The applicant demonstrated financial responsibility by paying off two debts, establishing payment plans for others, and disputing additional accounts.
The financial difficulties were largely attributed to circumstances beyond the applicant's control, specifically unemployment, divorce, and declining real estate values. The judge found that the applicant exhibited self-discipline and good judgment in managing his debts. Consequently, the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant demonstrated financial responsibility by paying off two debts and establishing payment plans for others.
- Circumstances beyond the applicant's control contributed to his financial difficulties, including unemployment and divorce.
- The applicant showed self-discipline and good judgment in managing his debts.
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
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMay 11, 2011
- Answer filedJul 28, 2011
- Hearing heldMar 1, 2012Applicant received 15 days notice of the hearing.
- Decision dateApr 20, 2012
Cite For
- Application of Mitigating Conditions Under Guideline F
- Consideration of Circumstances Beyond an Applicant's Control in Financial Cases
- Demonstrating Financial Responsibility Through Debt Repayment and Management Plans