Summary
A 43-year-old military medical center employee was denied a security clearance due to financial considerations under Guideline F, stemming from $64,521 in unpaid debts. The applicant admitted to 11 alleged debts, none of which had been paid. While she claimed to be negotiating settlements for some debts and stated others had been removed from her credit report, only three of the original 11 debts appeared on her most recent report.
The applicant engaged a credit repair company to address credit report inaccuracies and stated she was unaware of a delinquent home mortgage until her 2011 divorce petition, with a foreclosure finalized in 2012. Despite these issues, she answered "No" to all financial record questions on her 2018 Security Clearance Application (SCA) and did not disclose the foreclosure or any delinquent debts. Five of her six individual accounts were delinquent prior to her 2018 SCA.
The denial was based on the applicant's admission of the unpaid $64,521 debt, her failure to provide sufficient evidence of negotiations or settlements, and her non-disclosure of significant financial issues, including the foreclosure, on her security clearance application. The applicant did not establish that debts removed from her credit report were no longer her responsibility.
Why the Applicant Was Denied
- The applicant admitted to 11 debts totaling $64,521, which remain unpaid.
- The applicant failed to provide sufficient evidence of negotiations or settlements regarding her debts.
- The applicant did not disclose significant financial issues, including a foreclosure, on her security clearance application.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are current and unresolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence that her financial issues were beyond her control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate any repayment agreements or payments made.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant's disputes were not corroborated with sufficient evidence.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedAug 28, 2019
- Answer filedOct 16, 2019
- Hearing heldMar 20, 2020
- Decision dateMar 20, 2020
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence to Mitigate Financial Concerns
- Importance of Full Disclosure in Security Clearance Applications