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Summary

The applicant, a 47-year-old senior business manager with a history of financial difficulties, faced security concerns under Guideline F due to ten charged-off or collection accounts totaling $39,446. The applicant demonstrated significant progress in resolving her debts, having paid four debts and planned payments for others, which led to the granting of her security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: debts for $447 and $223 originating from the same business and being collected by the same collection agent. (PAID) Applicant paid these two debts on January 16, 2014, and on February 18, 2014, as documented in her checking account statements (1.a). debts for $447 and $223 originating from the same business and being collected by the same collection agent. (PAID) Applicant paid these two debts on January 16, 2014, and on February 18, 2014, as documented in her checking account statements (1.b). a medical collection debt for $95. She did not explain how she plans to resolve this debt (1.c). a telecommunications collection debt for $592. Applicant disputed her responsibility for this debt, asserting she has never had an account with this creditor (1.d). a telecommunications collection debt for $781. She said she planned to pay this debt in April 2015 (1.e). a collection debt for $377. (PAID) On January 2, 2014, and February 3, 2014, Applicant paid the debt in full as documented in her checking account statements (1.f). a telecommunications collection debt for $1,846. She said she planned to pay the smaller debt in May 2015, and to start paying the larger debt through an installment plan in May 2015 (1.g). a telecommunications collection debt for $368. She said she planned to pay the smaller debt in May 2015, and to start paying the larger debt through an installment plan in May 2015 (1.h). a charged-off bank debt for $33,660. This debt was a home equity loan borrowed in September 2005, which became delinquent in 2012. She planned to start paying this debt through an installment plan on April 30, 2015 (1.i). a charged-off bank debt for $1,057. (PAID) On December 17, 2013, Applicant paid the debt in full as documented in her checking account statement (1.j).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant provided sufficient documentation of her progress in resolving financial problems; She paid four SOR debts and planned to pay others, demonstrating a good faith effort to address her financial obligations; The financial difficulties were largely due to circumstances beyond her control, such as a significant reduction in income.

Why the Applicant Prevailed

• The applicant provided sufficient documentation of her progress in resolving financial problems.
• She paid four SOR debts and planned to pay others, demonstrating a good faith effort to address her financial obligations.
• The financial difficulties were largely due to circumstances beyond her control, such as a significant reduction in income.

Conditions Referenced

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines.”

Procedural Posture

• SOR issuedApr 28, 2014
• Answer filedMay 29, 2014Applicant did not request a hearing.
• Hearing held—
• Decision dateJun 24, 2015

Cite For

• Mitigation of Financial Considerations Under Guideline F
• Good Faith Efforts to Resolve Debts
• Impact of Circumstances Beyond Control on Financial Obligations