Summary
A 36-year-old independent contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) related to approximately $60,000 in delinquent debts. The Statement of Reasons detailed three specific debts: a Cavalry collection account totaling $14,955, which was settled for $7,500 and satisfied by December 2012; an AAC account of $12,134, settled for $4,400 with a lump sum payment in February 2013; and a Chase collection account for $8,731, purchased by Midland, which was settled for $6,200 in June 2012.
The applicant admitted to the debts, attributing them to the economic downturn and prioritizing essential payments. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised. However, the judge applied mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(d).
The clearance was granted because the applicant had settled three of the four delinquent debts listed in the Statement of Reasons and demonstrated a consistent track record of payments over the preceding 18 months. His financial difficulties were largely attributed to circumstances beyond his control, such as the economic downturn, and he showed demonstrated responsibility and current financial stability.
Why the Applicant Prevailed
- The applicant settled three of the four delinquent debts listed in the SOR.
- He demonstrated a consistent track record of payments towards his debts over the last 18 months.
- The applicant's financial difficulties were largely attributed to circumstances beyond his control, such as the economic downturn.
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 Behavior Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- 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 31, 2012
- Answer filedTimely
- Hearing heldN/AApplicant requested an administrative determination in lieu of a hearing.
- Decision dateApr 15, 2013
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Significant Progress in Debt Resolution as a Factor in Security Clearance Decisions
- Impact of Economic Downturn on Financial Obligations and Security Clearance Eligibility