Summary
The applicant, a 31-year-old single parent and Clinical Functions Advisor, sought a public trust position but faced significant financial issues, including over $30,000 in delinquent debts. Despite her claims of financial hardship due to high living costs and family obligations, the judge found insufficient evidence of financial responsibility and mitigation of concerns, leading to a denial of her application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a bank for a vehicle she purchased. The loan account was past due in the amount of $302, with an outstanding balance of $9,465 (1.a). Applicant is indebted to a creditor for an account that was charged off in the approximate amount of $2,436 (1.b). Applicant is indebted to a creditor for a motor cycle she purchased. The account was charged off in the approximate amount of $1,161 (1.c). Applicant is indebted to a creditor for a credit card account that was charged off in the approximate amount of $598 (1.d). Applicant is indebted to a creditor for a cell phone service account that was placed for collection in the approximate amount of $3,910 (1.e). Applicant is indebted to a bank for a personal loan she obtained to purchase tires for her car and make necessary car repairs. The account was placed for collection in the approximate amount of $2,779 (1.f). Applicant is indebted to a creditor for cell phone service she had while on active duty. The account was placed for collection in the approximate amount of $3,019 (1.g). Applicant is indebted to a creditor for a credit card account that was placed for collection in the approximate amount of $625 (1.h). Applicant is indebted to a military credit card for an account that was placed for collection in the approximate amount of $692 (1.i). Applicant is indebted to a University for an account that was placed for collection in the approximate amount of $5,484 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has over $30,000 in delinquent debts, raising serious trustworthiness concerns; The applicant failed to demonstrate a good-faith effort to resolve her financial issues or establish payment plans with creditors; The applicant's financial distress was not sufficiently mitigated by her circumstances or actions.
Why the Applicant Was Denied
- The applicant has over $30,000 in delinquent debts, raising serious trustworthiness concerns.
- The applicant failed to demonstrate a good-faith effort to resolve her financial issues or establish payment plans with creditors.
- The applicant's financial distress was not sufficiently mitigated by her circumstances or actions.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debt Regardless of the Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant faced financial strain due to high living costs and family obligations, she did not demonstrate sufficient effort to resolve her debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not show evidence of initiating or adhering to a repayment plan.
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 issuedOct 30, 2020
- Answer filed—
- Hearing heldAug 24, 2021
- Decision dateNov 3, 2021
Cite For
- Financial Responsibility Under Guideline F
- Impact of Financial Distress on Trustworthiness
- Requirements for Mitigating Financial Concerns in Security Clearance Cases