Summary
The applicant, a 37-year-old federal contractor, faced security clearance concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to financial difficulties stemming from her ex-husband's failure to pay child support. Since 2004, she has improved her credit history and is actively resolving her debts. The judge found that the applicant mitigated the financial concerns and the government did not provide evidence for the personal conduct allegations, resulting in a granted clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant contacted the credit card company referenced in SOR ¶ 1.a. After a conversation, she wrote them letters explaining her financial problems. She was willing to make minimum monthly payments, but could not afford the amount the company required. Consequently, the company charged off the account as a bad debt. In September 2005, Applicant began making $150 monthly payments on the outstanding amount. As of February 2006, the amount due was $6,109 (1.a). In July 2002, Applicant contacted the furniture creditor listed in SOR ¶ 1.b. She requested the company arrange a repayment plan for her based on hardship, but later learned she was ineligible. Subsequently, the original debt was sold to another company and then resold, which made it more difficult to determine the appropriate holder of the debt (1.b).
The judge granted the clearance. The government raised disqualifying conditions E2.A6.1.2.1. 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: The applicant established a good credit history since 2004 and is actively resolving her debts; The government did not present evidence to support the allegations under Guideline E; The applicant's financial difficulties were largely due to her ex-husband's failure to pay child support, which was beyond her control.
Why the Applicant Prevailed
- The applicant established a good credit history since 2004 and is actively resolving her debts.
- The government did not present evidence to support the allegations under Guideline E.
- The applicant's financial difficulties were largely due to her ex-husband's failure to pay child support, which was beyond her control.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- 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
“The decision to deny an individual a security clearance is not necessarily a judgment about an applicant's loyalty.”
Procedural Posture
- SOR issuedJul 29, 2005
- Answer filedAug 18, 2005
- Hearing heldMar 1, 2006
- Decision dateApr 18, 2006
Cite For
- Mitigation of Financial Difficulties Due to External Factors Under Guideline F
- Lack of Evidence for Personal Conduct Allegations Under Guideline E
- Successful Resolution of Debts as a Mitigating Factor in Security Clearance Cases