Summary
A 50-year-old Billing Manager's security clearance application was denied under Guideline F (Financial Considerations) due to over $59,000 in delinquent debts. The Statement of Reasons detailed thirteen outstanding debts and one paid debt. These included a charged-off account of approximately $18,567, which was satisfied, and child support arrears of approximately $15,549, which had been reduced to about $13,138 through consistent payroll deductions.
Other significant debts included a charged-off vehicle account of approximately $6,763, a medical collection account of about $3,689, and a past-due account of approximately $3,419, all of which remained owing. Several smaller collection accounts, ranging from approximately $1,026 to $2,169, also remained unpaid. Two medical collection debts, initially around $487 and $304, were reduced to approximately $136 and $165, respectively. Two other debts, approximately $4,406 and $260, were disputed and removed from the applicant's credit report. A $195 debt was paid in full on April 12, 2016, but still appeared on credit reports.
Despite acknowledging some debts and citing personal hardships, the administrative judge denied the application. The denial was based on the applicant's failure to demonstrate a good-faith effort to resolve her delinquent debts, the fact that most debts remained unpaid, and insufficient evidence of responsible financial management.
Why the Applicant Was Denied
- The applicant failed to demonstrate a good-faith effort to resolve her delinquent debts.
- Most of the delinquent debts listed in the Statement of Reasons remained unpaid at the time of the decision.
- The applicant did not establish sufficient responsibility toward her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debt Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant faced personal hardships, she did not demonstrate a good-faith effort to resolve her debts.
- AG ¶ 20(d)rejectedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not show evidence of payment plans or efforts to contact creditors.
Key Rule Quoted
“Failure 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 issuedJul 16, 2018
- Answer filedAug 13, 2018Applicant requested a decision on the written record.
- Hearing held—Decision made based on written record.
- Decision dateMar 6, 2019
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Personal Circumstances on Financial Management
- Criteria for Evaluating Financial Considerations in Trustworthiness Determinations