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Summary

The applicant, a 44-year-old single mother with a high school diploma, faced security concerns under Guideline F due to approximately $27,000 in delinquent debt. The applicant mitigated these concerns by demonstrating a history of financial reform, including the satisfaction of several debts and evidence of responsible financial management following a period of depression and reduced income. 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 taken significant steps to resolve her debts.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has defaulted on two car notes and incurred several other delinquent debts. The balance owed on the first car loan was $13,202 (1.a). Applicant has approximately $27,000 of delinquent debt including three utilities totalling approximately $860 (1.b). Applicant has approximately $27,000 of delinquent debt including three medical bills, totalling approximately $650 (1.c). Applicant has approximately $27,000 of delinquent debt including two credit cards totalling approximately $2,000 (1.d). Applicant has approximately $27,000 of delinquent debt including two credit cards totalling approximately $2,000. (duplicate of 1.f) (1.e). Applicant has approximately $27,000 of delinquent debt including two credit cards totalling approximately $2,000. (duplicate of 1.e) (1.f). Applicant has approximately $27,000 of delinquent debt including a $267 bill owed to a property management company (1.g). Applicant has approximately $27,000 of delinquent debt including three medical bills, totalling approximately $650. (disputed payment) (1.h). Applicant has defaulted on two car notes and incurred several other delinquent debts. The balance owed on the second car loan was approximately $10,200 (1.i). The debt listed in subparagraph 1.j, totalling $714, stems from a contractual dispute over whether Applicant’s cell phone coverage included unlimited text messaging (1.j). Applicant does not recognize the $70 medical bill listed in subparagraph 1.k. It remains outstanding (1.k).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant satisfied approximately $2,400 of the SOR debts and $650 of unlisted debts; The applicant's financial issues were linked to past mental health struggles and a significant pay cut, which were beyond her control; The applicant demonstrated a reasonable basis for disputing some debts and provided evidence of financial reform.

Why the Applicant Prevailed

• The applicant satisfied approximately $2,400 of the SOR debts and $650 of unlisted debts.
• The applicant's financial issues were linked to past mental health struggles and a significant pay cut, which were beyond her control.
• The applicant demonstrated a reasonable basis for disputing some debts and provided evidence of financial reform.

Conditions Referenced

Key Rule Quoted

“"Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified information."”

Procedural Posture

• SOR issuedSep 17, 2013
• Answer filedOct 18, 2013Applicant requested a decision on the written record.
• Hearing held—No hearing; decision made on the written record.
• Decision dateFeb 28, 2014

Cite For

• Mitigation of Financial Considerations Under Guideline F
• Impact of Mental Health on Financial Stability
• Demonstrated Track Record of Financial Reform Leading to Favorable Security Clearance Outcomes.