Summary
A 37-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to over $35,000 in delinquent debts. These debts included medical bills totaling $440, an outstanding loan of $8,375, and delinquent student loans amounting to $17,314. Additionally, she owed $10,130 to a collection agency for a credit card and faced a $3,604 judgment from another credit collection company. An additional medical debt of approximately $487 was also noted.
The administrative judge found that the applicant had not taken sufficient steps to mitigate these financial issues, despite her struggles stemming from unemployment. The decision highlighted that the debts remained mostly unpaid and that she had not demonstrated a good-faith effort to repay or resolve them.
The denial was based on the determination that her financial problems made her vulnerable to pressure, coercion, exploitation, or duress, thereby posing a security concern. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, while mitigating conditions FC MC 20(a), FC MC 20(b), FC MC 20(c), and FC MC 20(d) were considered but ultimately not applied to overcome the security concerns.
Why the applicant was denied
- The applicant has over $35,000 in delinquent debts, which remain mostly unpaid.
- She has not demonstrated a good-faith effort to repay overdue creditors or resolve her debts.
- The applicant's financial issues make her vulnerable to pressure, coercion, exploitation, or duress.
Conditions referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- FC MC 20(b)appliedConditions Largely Beyond the Person's Control
- FC MC 20(c)rejectedReceived or Is Receiving Counseling for the Problem
- FC MC 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
Key rule quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural posture
- SOR issuedMar 9, 2007
- Answer filedMar 29, 2007
- Hearing heldJun 4, 2007
- Decision dateJun 22, 2007
Cite for
- Financial Considerations Under Guideline F
- Impact of Delinquent Debts on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts to Resolve Financial Issues