Summary
A 36-year-old defense contractor with a Master's Degree in Engineering was granted a security clearance despite allegations of financial irresponsibility under Guideline F (Financial Considerations). The Statement of Reasons detailed several outstanding debts, including credit card balances from June 1990 ($2,733.00), July 1990 ($1,088.00), and October 1990 ($1,414.00). Other admitted debts included an unpaid account from August 1990 ($1,370.00), two credit union accounts from April 1992 ($1,996.00 and $6,137.00), and a health club membership from June 1994 ($598.00).
The applicant denied owing two specific credit card debts, one for $1,088.00 and another for $2,156.00, based on information from his credit counseling firm. Disqualifying conditions F.1 and F.3 were raised.
However, the judge applied mitigating conditions F.3 and F.6, finding that the applicant demonstrated a good-faith effort to resolve his financial issues. This effort included hiring a credit counseling firm and making regular monthly payments towards his delinquent debts since March 1997. The judge also determined that the applicant's financial difficulties were largely due to circumstances beyond his control, such as unemployment and family obligations. Ultimately, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors by hiring a credit counseling firm.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including unemployment and family obligations.
- The applicant has been making regular monthly payments towards his delinquent debts since March 1997.
Conditions Referenced
- F.1raisedFinancial Considerations - A History of Not Meeting Financial Obligations
- F.3raisedFinancial Considerations - an Inability or Unwillingness to Satisfy Debts
- F.3appliedFinancial Considerations - the Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- F.6appliedFinancial Considerations - the Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is the careful weighing of a number of variables known as the whole person concept.”
Procedural Posture
- SOR issuedFeb 21, 1997
- Answer filedApr 7, 1997
- Hearing heldOct 9, 1997
- Decision dateDec 11, 1997
Cite For
- Good-faith Efforts to Resolve Financial Issues Under Guideline F
- Mitigating Circumstances Related to Financial Difficulties
- Whole Person Concept in Security Clearance Evaluations