Summary
Applicant is a 51-year-old employee of a defense contractor who incurred delinquent debts due to the closure of a military installation and the need to maintain two households. She sought assistance from a credit counseling organization and has made consistent payments on her debts. The judge found that her good-faith efforts to resolve her financial issues mitigated the security concerns, resulting in a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: delinquent debt on a credit card for $6,755.00 (1.a). another credit card debt of $2,984.00 (1.b). credit card debt of $4,830.00 (1.c).
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.A6.1.3.3, E2.A6.1.3.4, E2.A6.1.3.6. The decision turned on the following: Applicant demonstrated good-faith efforts to pay creditors through a credit counseling organization; Delinquent debts were largely a result of circumstances beyond her control, such as job loss and maintaining two households; Applicant's financial situation showed improvement with consistent payments reducing the amounts owed.
Why the Applicant Prevailed
- Applicant demonstrated good-faith efforts to pay creditors through a credit counseling organization.
- Delinquent debts were largely a result of circumstances beyond her control, such as job loss and maintaining two households.
- Applicant's financial situation showed improvement with consistent payments reducing the amounts owed.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedAn Inability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.4appliedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“"Eligibility for a security clearance is predicated upon the applicant meeting the security guidelines contained in the Directive."”
Procedural Posture
- SOR issuedJun 22, 2005
- Answer filedJul 10, 2005Applicant admitted all allegations.
- Hearing heldOct 26, 2005Hearing conducted via video teleconference.
- Decision dateNov 23, 2005
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Good-faith Efforts
- Impact of Circumstances Beyond Control on Financial Obligations
- Importance of Credit Counseling in Resolving Financial Issues