Summary
The applicant, a 42-year-old veteran with a history of financial difficulties, sought a security clearance under Guideline F (Financial Considerations). Despite admitting to several debts totaling approximately $58,000, the applicant demonstrated responsible behavior by addressing her debts, maintaining employment, and receiving financial counseling. The judge granted the security clearance, finding that the applicant's financial issues were largely due to circumstances beyond her control and that she had made significant efforts to resolve her financial obligations.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: for a student loan account in the amount of $5,209 (1.a). for a student loan account in the amount of $4,595 (1.b). for a collection account in the amount of $2,201 (1.c). for a collection account in the amount of $525 (1.d). for a collection account in the amount of $231 (1.e). for a past-due mortgage account in the amount of $41,756 (1.f). for a medical collection account in the amount of $1,937 (1.g). for a phone account in the amount of $679 (1.h). for a phone account in collection for $599 (1.i). for a collection account for a mobile phone in the amount of $590 (1.j). for a medical collection account in the amount of $622 (1.k).
The judge granted the clearance. The government raised disqualifying conditions FC DC AG ¶ 19(a), FC DC AG ¶ 19(c). The judge applied mitigating conditions FC MC AG ¶ 20(a), FC MC AG ¶ 20(b), FC MC AG ¶ 20(c), FC MC AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts; The applicant's financial difficulties were largely due to circumstances beyond her control, including unemployment and caring for an ill family member; The applicant has maintained employment and is actively addressing her debts through payment plans and loan modifications.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including unemployment and caring for an ill family member.
- The applicant has maintained employment and is actively addressing her debts through payment plans and loan modifications.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- FC MC AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
- FC MC AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 5, 2014
- Answer filed—Timely answered the SOR.
- Hearing heldApr 5, 2016Record kept open until April 22, 2016.
- Decision dateMay 4, 2016
Cite For
- Mitigating Circumstances Under Guideline F Due to Financial Difficulties Caused by External Factors
- Good-faith Efforts to Resolve Financial Obligations
- Consideration of the Whole-person Concept in Security Clearance Determinations