Summary
A 44-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed twelve allegations of delinquent debts, including multiple telecommunications bills ranging from $51 to $526, medical debts of $52 and $693, a utility bill of $743, and a satellite television bill of $91. Additionally, there were two bank credit card debts of $12,191 and $1,986, and a collection company debt for a bank of $1,672.
The applicant successfully mitigated these concerns by demonstrating that he had resolved most of his debts. Specifically, he paid off six telecommunications debts, two medical debts, and the satellite television bill by August 2014. The $1,986 bank credit card was paid through six monthly payments, concluding in January 2015, and the utility company debt was resolved through payments made between August and December 2014. The collection company debt was paid through monthly installments from September 2014 to January 2015.
For the remaining $12,191 bank credit card debt, the applicant established a $200 per month payment plan in September 2014 and consistently made all payments. The financial issues were largely attributed to his wife's medical problems and family obligations, circumstances deemed beyond his control. The judge concluded that the applicant's good-faith efforts to manage and resolve his financial obligations demonstrated a stable financial situation, leading to the granting of his security clearance.
Why the Applicant Prevailed
- Applicant resolved ten delinquent debts and established a payment plan for the remaining debt.
- The financial issues were largely due to circumstances beyond his control, including his wife's medical problems.
- Applicant demonstrated a good-faith effort to manage and resolve his 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(b)appliedConditions That Resulted in the Financial Problem 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 or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance adjudication is not a debt collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedJul 23, 2014
- Answer filedSep 9, 2014
- Hearing heldFeb 10, 2015
- Decision dateMar 10, 2015
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Evaluation of Good-faith Efforts to Resolve Debts