Summary
The applicant, a 51-year-old defense contractor employee, faced security clearance denial under Guideline F due to unresolved financial issues, including nine delinquent accounts totaling approximately $24,176. Despite some admissions and minimal payments made after the Statement of Reasons was issued, the applicant failed to provide sufficient evidence of efforts to resolve these financial concerns, leading the judge to conclude that the applicant did not mitigate the associated security risks.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Jointly-held automobile loan with an unpaid balance of $19,208 that was charged off in December 2015 and sold to another company (1.a). Charge account with an unpaid balance of $699 that was charged off and sold to another company (1.b). Charge account with an unpaid balance of $883 that was charged off (1.c). Utility account with an unpaid balance of $421 that was charged off (1.d). Medical account with an unpaid balance of $390 that was placed for collection in 2014, resolved with a payment made on May 21, 2019 (1.e). Medical account with an unpaid balance of $127 that was placed for collection in 2018, resolved with a payment made on May 1, 2019 (1.f). Cellular telephone account with an unpaid balance of $1,506 that was placed for collection in 2014 (1.g). Internet account with an unpaid balance of $647 that was placed for collection in 2017 (1.h). Cellular telephone account with an unpaid balance of $369 that was placed for collection in 2014 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant had nine delinquent accounts totaling approximately $24,176, with several debts dating back to 2014 that were not addressed until after the SOR was issued; The applicant provided minimal evidence of payments and did not demonstrate a credible plan to resolve her financial issues; The applicant's actions suggested a lack of judgment and self-discipline in managing her financial obligations.
Why the Applicant Was Denied
- The applicant had nine delinquent accounts totaling approximately $24,176, with several debts dating back to 2014 that were not addressed until after the SOR was issued.
- The applicant provided minimal evidence of payments and did not demonstrate a credible plan to resolve her financial issues.
- The applicant's actions suggested a lack of judgment and self-discipline in managing her financial obligations.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant's efforts were deemed insufficient and not timely.
Key Rule Quoted
“"An applicant needs only to establish a plan to resolve financial problems and take significant actions to implement the plan."”
Procedural Posture
- SOR issuedApr 24, 2019
- Answer filedMay 15, 2019Applicant elected to have her case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateFeb 13, 2020
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating a Credible Plan for Debt Resolution
- Consideration of the Whole-person Concept in Financial Cases