Summary
This case concerns a 35-year-old program manager and former Navy service member whose security clearance was initially questioned under Guideline F (Financial Considerations). The Statement of Reasons cited several financial issues: a delinquent $98 cable bill, a charged-off loan of approximately $88,780, a home mortgage in foreclosure with a $310,000 balance, and another charged-off loan of about $28,838. These allegations raised disqualifying conditions related to financial irresponsibility.
However, the judge determined that the applicant's financial difficulties were largely attributable to unique circumstances beyond her control, specifically mentioning deed restrictions on her home. Upon learning of the $98 debt through the Statement of Reasons, she promptly paid it.
Crucially, all her financial delinquencies have since been resolved, and she has achieved financial stability. Given these mitigating factors, including the resolution of debts and the external causes of her past financial issues, the applicant was GRANTED security clearance.
Why the Applicant Prevailed
- The applicant's financial issues were primarily due to unique circumstances beyond her control, including deed restrictions on her home.
- She promptly paid a previously unknown $98 debt upon receiving the SOR.
- All her financial delinquencies have been resolved, and she is currently financially stable.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant did not actively engage with lenders after learning of her financial distress.
- AG ¶ 20(c)notedReceived Counseling for the Problem And/or Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant made a good-faith effort to resolve the $98 debt and attempted to address the home equity loans through a deed in lieu of foreclosure.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJan 23, 2013
- Answer filedFeb 11, 2013
- Hearing heldJun 3, 2013Hearing conducted as scheduled.
- Decision dateJul 17, 2013
Cite For
- Mitigating Circumstances Under Guideline F Due to Unique Financial Situations
- Resolution of Financial Delinquencies as a Basis for Granting Security Clearance
- Consideration of the Whole-person Concept in Security Clearance Decisions