Summary
The applicant, a 37-year-old field support engineer and former Army member, faced financial issues due to educational and family expenses, leading to significant debt. After obtaining a new job in January 2004, he made substantial efforts to resolve his debts, resulting in the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $6,236 - Disputes-Debt is from corporate card. Corporation was to pay-never saw a bill or had control of the payments. He gave appropriate notice to this employer when he left and was never told of this debt. This acct was opened 6-7 months after he left the company (1.a). $6,343 - Disputes-Debt is from corporate card. Corporation was to pay-never saw a bill or had control of the payments. He gave appropriate notice to his employer when he left the company and was never told of this debt (1.b). $115 - Paid collection account (1.c). $266 - Paid (1.d). $2,025 - Still owing. Has tried to set up payment plan. They never call back (1.e). $2,744 - Paid (1.f). $1,311 - Paid (1.g). $98 - Paid (1.h). $518 - Paid (1.i). $19 - Paid (1.j). $167 - Paid (1.k). $6,293 - Judgment-Applicant denies knowledge of this, but he did live in that state when the judgment was rendered (1.l). $6,159 - Paid $3,000 (the interest and penalties were waived) (1.m). $497 - Paid (1.n). $116 - Paid-Same as 1.c (1.o). $4,475 - Has set up payment plan is paying $337 @ mo. since Oct 2004 (1.p). $10,380 - He made agreement to settle by paying 3 payments of $2,133. They took 2 payments out of his bank acct w/in 2 days (instead of 1), emptying his bank account. He telephoned creditor to complain-they have not returned his calls, but the debt no longer appears on his credit report (1.q).
The judge granted the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.6. The decision turned on the following: The applicant demonstrated a good-faith effort to repay overdue creditors and resolve delinquent debts; He made substantial progress in paying off debts since obtaining a new job; The applicant showed understanding of the government's concerns regarding his financial history.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve delinquent debts.
- He made substantial progress in paying off debts since obtaining a new job.
- The applicant showed understanding of the government's concerns regarding his financial history.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedFinancial Considerations - Unable or Unwilling to Pay Debts
- E2.A6.1.3.6appliedFinancial Considerations - Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedJun 9, 2005
- Answer filedJul 18, 2005
- Hearing heldOct 19, 2005rescheduled due to Hurricane Rita
- Decision dateNov 15, 2005
Cite For
- Good-faith Efforts to Resolve Financial Issues Under Guideline F
- Substantial Progress in Debt Repayment as a Mitigating Factor
- Understanding of Financial Obligations and Government Concerns as a Basis for Clearance Approval