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Summary

The applicant, a 35-year-old defense contractor with three children, faced financial difficulties under Guideline F due to approximately $31,000 in overdue debts. The judge found that the applicant had made responsible efforts to resolve her debts, including payments and good-faith attempts to contact creditors, leading to a decision to grant her security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR in the amount of $36. At the hearing, Applicant testified that this debt has been paid in full and Department Counsel also indicated that Exhibit 8, which is the most current credit report, shows that this debt has been resolved (1.a). This overdue debt is cited in the SOR in the amount of $1,227. Applicant testified that she is paying $110.85 a month on this debt, and she had thus far made two payments (1.b). This overdue debt is cited in the SOR in the amount of $1,182. Applicant testified that she is paying $114.46 a month on this debt, and she had thus far made two payments (1.c). This overdue debt is cited in the SOR in the amount of $642. Applicant testified that this debt is to the same creditor as 1.b., above, and the amount she pays that has been reviewed under 1.b. goes towards both debts (1.d). This overdue debt is cited in the SOR in the amount of $998. Applicant testified that she attempted to contact each creditor by phone, often on more than one occasion. If she did not receive a reply she sent a form letter asking the creditor to verify the debt (1.e). This overdue debt is cited in the SOR in the amount of $311. Applicant testified that this debt has been paid in full and Department Counsel also indicated that Exhibit 8 shows that this debt has been resolved (1.f). This overdue debt is cited in the SOR in the amount of $7,080. Applicant testified that after she sent out her form letter, she was informed that this debt was with a collection agency. She contacted someone from the agency and was told she would receive correspondence, but she has not received anything (1.g). This overdue debt is cited in the SOR in the amount of $493. Applicant testified that she has contacted this creditor, but they told her they do not have a record of this debt (1.h). This overdue debt is cited in the SOR in the amount of $118. Applicant testified that she did not find this debt on any of the three credit reports that she reviewed so she did not know whom to contact (1.i). This overdue debt is cited in the SOR in the amount of $147. Applicant testified that this debt has been paid in full and Department Counsel also indicated that Exhibit 8 shows that this debt has been resolved (1.j). This overdue debt is cited in the SOR in the amount of $601. Applicant testified that she could not make contact with this creditor by phone. She sent them a form letter, asking the creditor to verify the debt but she received no reply (1.k). This overdue debt is cited in the SOR in the amount of $692. Applicant testified that she could not make contact with this creditor by phone. She sent them a form letter, asking the creditor to verify the debt but she received no reply (1.l). This overdue debt is cited in the SOR in the amount of $271. Post hearing Exhibit AA shows that this debt has been resolved (1.m). This overdue debt is cited in the SOR in the amount of $446. Applicant testified that she could not make contact with this creditor by phone. She sent them a form letter, asking the creditor to verify the debt but she received no reply (1.n). This overdue debt is cited in the SOR in the amount of $2,539. Applicant testified that she could not make contact with this creditor by phone. She sent them a form letter, asking the creditor to verify the debt but she received no reply (1.o). This overdue debt is cited in the SOR in the amount of $673. Applicant testified that she could not make contact with this creditor by phone. She sent them a form letter, asking the creditor to verify the debt but she received no reply (1.p). This overdue debt is cited in the SOR in the amount of $783. Applicant testified that this debt has been settled based on a demand from the creditor of $120.35 (1.q). This overdue debt is cited in the SOR in the amount of $750. Applicant testified that she had made two monthly payments of $50 toward this debt, and then she believed she was involved in some kind of a scam (1.r). This overdue debt is cited in the SOR in the amount of $332. Applicant testified that she could not make contact with this creditor by phone. She sent them a form letter, asking the creditor to verify the debt but she received no reply (1.s). This overdue debt is cited in the SOR in the amount of $286. Applicant testified that this debt has been paid in full (1.t). This overdue debt is cited in the SOR in the amount of $353. Applicant testified that she has made one payment of $50.46 on this debt, and she plans to continue making monthly payments of that amount (1.u). This overdue debt is cited in the SOR in the amount of $322. Applicant testified that this debt has been paid in full (1.v). This overdue debt is cited in the SOR in the amount of $9,208.05. Applicant testified that she is paying $860 a month toward this debt (1.w). This overdue debt is cited in the SOR in the amount of $280. Applicant testified that she has made one payment of $10 toward this debt, but she plans to increase the monthly payments (1.x). This overdue debt is cited in the SOR in the amount of $323. Applicant testified that she when she attempted to make contact with this creditor by phone, she was informed that the phone was disconnected (1.y). This overdue debt is cited in the SOR in the amount of $406. Applicant testified that she has made one payment of $30 and one payment of $15 toward this debt (1.z). This overdue debt is cited in the SOR in the amount of $535. Applicant testified that she has made one payment of $64 and one payment of $15 toward this debt (1.aa).

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). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve her debts, including making payments and contacting creditors; The applicant's financial difficulties were largely due to circumstances beyond her control, such as unemployment and marital issues; The applicant is current on her recent financial obligations and has shown improvement in her financial situation.

Why the Applicant Prevailed

• The applicant demonstrated a good-faith effort to resolve her debts, including making payments and contacting creditors.
• The applicant's financial difficulties were largely due to circumstances beyond her control, such as unemployment and marital issues.
• The applicant is current on her recent financial obligations and has shown improvement in her financial situation.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedFeb 14, 2013
• Answer filedMar 21, 2013
• Hearing heldMay 23, 2013
• Decision dateAug 22, 2013

Cite For

• Mitigating Conditions for Financial Difficulties Under Guideline F
• Good-faith Efforts to Resolve Debts as a Mitigating Factor
• Impact of Personal Circumstances on Financial Obligations