Summary
A 52-year-old federal contractor, who has held a security clearance since 1997, faced a DOHA security-clearance review under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged 27 debts totaling approximately $38,000. These debts included medical expenses, credit card accounts (some charged-off), store accounts (some charged-off or placed for collection), and other collection accounts. Specific examples included a medical debt of $821, a credit card debt of $255, and several charged-off credit card debts ranging from $2,106 to $10,018.
The applicant's financial difficulties were primarily attributed to medical expenses and home repairs. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised. However, the judge applied several mitigating conditions, including AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e).
The judge found that the applicant had made significant good-faith efforts to resolve her debts, including establishing payment plans and reaching settlements with creditors. Evidence showed payments and settlements for most debts, such as a $103 medical debt paid in August 2013. The judge concluded that the applicant's financial problems were largely due to medical issues beyond her control and that her financial situation was now under control. Consequently, the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
- The applicant's financial problems were largely attributed to medical issues beyond her control.
- The applicant provided evidence of payments and settlements for most of her debts, indicating her financial situation is under control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Counseling or Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 21, 2013
- Answer filedApr 16, 2013
- Hearing heldAug 29, 2013
- Decision dateSep 20, 2013
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Medical Circumstances
- Good-faith Efforts in Debt Repayment
- Consideration of the Whole-person Concept in Security Clearance Decisions