Summary
A 40-year-old applicant with a history of financial delinquencies was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited several financial issues, including an orthodontic contract placed for collection in April 2002, a credit card charged off in April 2004, a satellite service account placed for collection in December 2004, and a student loan placed for collection in January 2003 that the applicant never received. Additionally, an automobile loan was 30 days past due in August 2005, and a rental home mortgage in the applicant's name was impacted by tenants. The applicant also incorrectly answered "no" to a question on his March 2004 SF 86 regarding accounts 180 days delinquent.
Disqualifying conditions were raised concerning financial difficulties and a history of not meeting financial obligations. However, mitigating conditions were applied, recognizing that the applicant's financial difficulties were largely due to circumstances beyond his control, specifically prolonged unemployment while serving as a house-husband and his wife's military reassignments.
The judge found that the applicant demonstrated a good-faith effort to resolve his debts through legal and professional assistance. Most debts were either resolved, disputed, or were being paid under a debt consolidation plan. Consequently, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his debts through legal and professional assistance.
- Most of the applicant's debts were either resolved, disputed, or are being paid under a debt consolidation plan.
- The applicant's financial difficulties were largely due to circumstances beyond his control, such as prolonged unemployment and his wife's military reassignments.
Conditions Referenced
- FC DC E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- FC DC E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- FC MC E2.A6.1.3.3appliedConditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- FC MC 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
- FC MC E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The issuance of the clearance is "clearly consistent with the interests of national security" or "clearly consistent with the national interest."”
Procedural Posture
- SOR issuedNov 17, 2005
- Answer filedDec 5, 2005
- Hearing heldMar 29, 2006
- Decision dateMay 23, 2006
Cite For
- Mitigating Circumstances Related to Financial Difficulties Under Guideline F
- Good-faith Efforts to Resolve Debts
- Careless but Not Deliberate Misrepresentation Under Guideline E