Summary
A 45-year-old federal contractor and retired Navy veteran was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed 26 delinquent debts totaling approximately $73,065, including charged-off accounts, collection accounts, and a judgment. Specific examples included a charged-off account for $34,666, another for $6,367, and a judgment for $737, among others. These issues raised disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c).
The applicant attributed the financial difficulties primarily to his ex-wife's financial irresponsibility and a period of unemployment following his military service. However, the judge found that the applicant had taken responsible steps to address these debts.
Mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied. The judge determined that the applicant demonstrated a good-faith effort to resolve his delinquent debts, including disputing inaccuracies and entering repayment plans. His financial issues were largely due to circumstances beyond his control, and his financial situation is now stable, with current obligations being met. Consequently, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his delinquent debts.
- The financial issues were largely due to circumstances beyond his control, including divorce and unemployment.
- The applicant's financial situation is now stable, and he is meeting current financial obligations.
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)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJan 15, 2015
- Answer filedFeb 3, 2015
- Hearing heldMay 14, 2015
- Decision dateAug 25, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond the Applicant's Control
- Good-faith Efforts to Resolve Debts as a Mitigating Factor
- Stability in Financial Situation as a Basis for Granting Security Clearance