Summary
A 30-year-old Claims Associate II and single mother from South Carolina was granted a security clearance for a sensitive position despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited approximately $10,000 in delinquent debt incurred between 2001 and 2003 across ten accounts, including credit cards and various store and catalog accounts. Additionally, a personal conduct concern arose because the applicant answered "no" to a question about being over 180 days delinquent on any financial obligation, despite the existing delinquencies.
Disqualifying conditions related to financial considerations and personal conduct were raised. However, several mitigating conditions were applied, leading to the favorable outcome.
The decision to grant the clearance was based on the applicant's demonstrated rehabilitation. She had not incurred any new delinquent debt since August 2003 and consistently made timely payments on her current obligations, such as her mortgage and car payments. Furthermore, the South Carolina statute of limitations had eliminated her legal obligation to pay the previously delinquent debts.
Why the Applicant Prevailed
- The applicant has not incurred additional delinquent debt since August 2003.
- She has been timely paying her mortgage and car payments, demonstrating financial responsibility.
- The South Carolina statute of limitations has eliminated her legal obligation to pay the delinquent debts.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe applicant's debts are more than three years old, but she has not incurred new debts since.
- E2.A6.1.3.2rejectedThe Behavior Was IsolatedThe applicant incurred multiple delinquent debts over a period of two and a half years.
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's financial issues arose after purchasing a car for work.
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Under ControlThe applicant has not sought financial counseling.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not made any payments towards her debts.
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance.”
Procedural Posture
- SOR issuedApr 3, 2006
- Answer filedApr 27, 2006Applicant submitted a notarized response.
- Hearing held—Applicant elected to have the case decided on the written record.
- Decision dateJan 16, 2007
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Absence of New Debt
- Interpretation of Personal Conduct Regarding Omission of Financial Obligations
- Application of State Statute of Limitations Affecting Financial Obligations