Summary
A 44-year-old government contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons (SOR) alleged 15 delinquent debts, primarily charged-off and collections accounts from credit cards and consumer debts, totaling approximately $25,000. The applicant attributed these financial problems to losing a part-time job in 2013 and the loss of her fiancé, with whom she shared expenses.
In April 2018, the applicant entered a debt relief plan (DRP) intended to cover all the SOR debts, with monthly payments of $378 for 48 months beginning in May 2018. However, the applicant failed to provide documentation confirming any payments were made to the DRP or that the DRP made payments to creditors. While two emails from the debt relief company listed payment schedules, neither documented previous payments.
Ultimately, the applicant admitted to the 15 delinquent debts but did not provide evidence of payments under the DRP or demonstrate financial stability or other mitigation efforts, such as financial counseling beyond the DRP. Consequently, the judge concluded that the applicant did not meet the necessary criteria for eligibility, and the clearance was denied.
Why the Applicant Was Denied
- The applicant admitted to 15 delinquent debts totaling approximately $25,000.
- The applicant failed to provide evidence of payments made under the debt relief plan.
- The applicant did not demonstrate financial stability or mitigation efforts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial problems were attributed to circumstances beyond her control, but she did not provide sufficient evidence of responsible action to resolve her debts.
- AG ¶ 20(c)rejectedFinancial CounselingThe applicant did not show evidence of receiving financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant failed to demonstrate a good-faith effort to repay overdue creditors.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 9, 2019
- Answer filedJun 11, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateNov 15, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Provide Evidence of Financial Stability as a Basis for Denial
- Impact of Financial Distress on Security Clearance Eligibility