Summary
The applicant, a 43-year-old federal contractor and veteran, faced security clearance denial under Guideline F due to unresolved financial issues totaling approximately $29,912. Despite acknowledging several debts and attributing her financial difficulties to her husband's unemployment, she failed to demonstrate sufficient efforts to mitigate these concerns, leading the judge to conclude that she did not establish a track record of financial stability.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $16,475 charge off. This is an auto account opened in September 2011 and was charged off in December 2013. In her SOR answer, Applicant admitted this account and claimed she would clear up this debt in the future with a payment arrangement. More recently, she admitted that she has yet to contact the creditor. This debt is unresolved (1.a). $316 charge off. This is a utility account opened in April 2013, which went delinquent in June 2015. Applicant admitted this account and claimed she has made several attempts to contact the creditor without success. She will continue to make efforts to resolve this debt. This debt is unresolved (1.b). $310 collection. This is a utility account opened in October 2018. Applicant admitted this account and documented payment in May 2021. This debt is resolved (1.c). $7,785 charge off. This is a vehicle account opened in June 2011, which was charged off in August 2013. In her SOR answer, Applicant admitted this account and claimed she would clear up this debt in the future with a payment arrangement. More recently, she stated she had a number for the creditor and would make payment arrangements beginning in August 2021. She failed to provide any documentation corroborating her claims. This debt is unresolved (1.d). $2,111 collection. This is an account with a financial institution that had its last activity in November 2011 and was assigned to a collection service in September 2013. Applicant admitted this debt, and in her SOR answer stated that she would make payment arrangements beginning in September 2020. There is no supporting documentation that she made such payment arrangements at that time. More recently, she stated she would pay this debt when she completes the settlement for SOR ¶ 1.g. This debt is unresolved (1.f). $1,348 collection. This is an account with a loan company that had its last activity in November 2012 and was assigned to a collection service in September 2013. Applicant denied this debt, claiming she was the victim of identity theft. She provided no documentation supporting this claim. Now she states that she will pay this debt when she completes the settlement for SOR ¶ 1.f. This debt is unresolved (1.g). $939; $628 collections. These two consumer accounts are for the same creditor. Applicant presented documentation that both accounts were closed in May 2021. These accounts are resolved (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has approximately $29,000 of delinquent debt, with most remaining unresolved; She did not provide sufficient evidence of efforts to resolve her debts or demonstrate financial stability; The judge found that her financial problems were unlikely to recur based on her lack of responsible actions to address her debts.
Why the Applicant Was Denied
- The applicant has approximately $29,000 of delinquent debt, with most remaining unresolved.
- She did not provide sufficient evidence of efforts to resolve her debts or demonstrate financial stability.
- The judge found that her financial problems were unlikely to recur based on her lack of responsible actions to address her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or InfrequentlyThe applicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were beyond her control, she did not act responsibly to resolve her debts.
- AG ¶ 20(c)rejectedReceived Financial CounselingThere is no evidence that the applicant sought financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's efforts were insufficient to demonstrate a good-faith effort.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtsThe applicant failed to provide documentation to support her dispute of one debt.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 4, 2020
- Answer filedAug 6, 2020Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateJul 27, 2021
Cite For
- Insufficient Efforts to Mitigate Financial Issues Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Financial Stability for Clearance Approval