Summary
A 46-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from medical issues and her husband's job loss, leading to multiple delinquent debts. These included two voluntarily repossessed automobile loans with unpaid balances of $12,256 and $2,931, and two charged-off accounts for $661 and $623 each. Other debts included a charged-off bank credit card for $1,356, and a credit card with a $500 limit and a high credit of $1,899.
Additionally, the applicant had several accounts that went to judgment, including a loan for $388 (paid by garnishment in December 2014), a loan for $496 (paid by garnishment in November 2006), a utility account for $392 (paid in March 2015), and a residential lease for $3,125 (paid by garnishment in December 2012). Other debts included various medical accounts totaling $407, $153, $135, $35, and $33, as well as a cellular telephone account for $228 (settled for $100 and paid in May 2012), a telephone account for $322 (paid in full), and a retail charge account for $692 (paid in April 1998).
The applicant also had a charged-off automobile loan for $3,638 (paid by garnishment in November 2004), a cellular telephone account for $154, and an insurance account for $223 under a repayment plan. A bank credit card for $1,949 was sold to a debt buyer and is under a $50 monthly repayment plan. A book club account for $135 was paid off over four years prior. The clearance was granted because her financial problems were largely due to circumstances beyond her control, and she demonstrated a responsible and active approach to resolving her debts, showing improved financial management.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond her control, including medical issues and her husband's job loss.
- She actively worked to resolve her debts through repayment plans and settlements with creditors.
- The applicant's financial situation showed improvement, indicating responsible management of her 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)appliedEvidence of Receiving Counseling or Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedSep 5, 2015
- Answer filedSep 28, 2015Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateFeb 23, 2016
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts in Resolving Debts
- Improvement in Financial Status as a Basis for Granting Security Clearance