Summary
A 32-year-old mechanical engineer was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant financial problems. The Statement of Reasons detailed 17 delinquent accounts totaling approximately $95,000. These included about $70,000 in student loans and approximately $10,325 from apartment leases, both of which were in collection. Additionally, the applicant had medical collection accounts incurred for necessary medical care.
The decision cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c), which address a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While Mitigating Conditions AG ¶ 20(c) and AG ¶ 20(d) were applied, acknowledging that some debts were due to circumstances beyond the applicant's control, such as necessary medical care, these were insufficient to overcome the concerns.
Ultimately, the clearance was denied because the applicant failed to demonstrate a good-faith effort to resolve her debts, particularly the substantial student loan and lease termination obligations. The judge concluded that despite acknowledging her debts and attributing them to inconsistent employment, the overall financial history raised concerns about her reliability and judgment, leading to the denial of her eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including 17 delinquent accounts totaling approximately $95,000.
- She did not make a good-faith effort to resolve her debts, particularly the significant student loan and lease termination debts.
- The judge found that while some medical debts were justified, the overall financial history raised concerns about her reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedConditions Largely Beyond the Person's ControlThe applicant's inconsistent employment history contributed to her financial problems.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not made a good-faith effort to resolve her debts.
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 or sensitive information.”
Procedural Posture
- SOR issuedApr 12, 2018
- Answer filedMay 18, 2018
- Hearing heldDec 6, 2018
- Decision dateAug 8, 2019
Cite For
- Denial Based on Significant Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Effort to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility