Summary
The applicant, a 44-year-old single female and senior administrative assistant for a defense contractor, faced security clearance denial due to financial difficulties stemming from medical issues and workplace incidents. Despite some payments made towards her delinquent debts totaling approximately $34,000, the judge found insufficient mitigation of security concerns related to financial irresponsibility, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has paid the following SOR accounts: 1.j, an account in the amount of $581; 1.e, an account in the amount of $1,126; 1.f, a medical account in the amount of $245; 1.g, a medical account in the amount of $103; 1.h, a collection account in the amount of $89; 1.i, a medical account in the amount of $181; and 1.n, a phone account in the amount of $202 (1.a). Applicant acknowledged her financial hardship, and explained that she believed her finances were under control when she submitted her SCA, but explained that six knee surgeries, other medical issues in 2016 through 2018, including a back surgery, 2016 sexual assaults in the workplace, and lost days of paid employment for months resulted in her current delinquent debt (1.b). Applicant has the following SOR accounts in a payment plan: 1.a, a charged-off account in the amount of $11,215 that has a term of 45 monthly payments of $250 (1.c). Applicant admitted that she was indebted to a state university for a registered class that she did not take and did not timely withdraw. (SOR 1.m) The amount owed is $1,797 (1.d). Applicant has spoken to a bankruptcy attorney, but she does want to pay her debts (1.e). Applicant is working with her father to develop a budget and a strategy to handle her finances (1.f). Applicant has no new delinquent debt and no car loan (1.g). Applicant has not produced sufficient information to show that she has been proactive in her actions (1.h). Applicant did not produce evidence of any financial counseling nor are there clear indications that her financial situation is under control (1.i). Applicant has made strides, but her financial problems are not under control (1.j). Applicant has not been able to consolidate her student loans and owes money to a state university (1.k). Applicant has only recently established two payment plans and made only one or two payments (1.l). Applicant has not attempted to resolve this account (1.m). Applicant has a monthly net remainder of about $365 after expenses (1.n).
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). The decision turned on the following: The applicant admitted to 14 delinquent debts totaling about $34,000, including student loans and medical accounts; The applicant's financial difficulties were exacerbated by medical issues and workplace incidents, but she did not provide sufficient evidence of financial counseling or that her financial situation was under control; The applicant's payment plans were not adequately documented, and she had not made consistent payments on her larger debts.
Why the applicant was denied
- The applicant admitted to 14 delinquent debts totaling about $34,000, including student loans and medical accounts.
- The applicant's financial difficulties were exacerbated by medical issues and workplace incidents, but she did not provide sufficient evidence of financial counseling or that her financial situation was under control.
- The applicant's payment plans were not adequately documented, and she had not made consistent payments on her larger debts.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's circumstances were beyond her control, she did not demonstrate sufficient proactive measures to address her debts.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not provide evidence of receiving financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant's efforts to repay debts were not sufficiently documented or consistent.
Key rule quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural posture
- SOR issuedMar 2, 2018
- Answer filedMay 9, 2018
- Hearing heldJan 11, 2019
- Decision dateFeb 22, 2019
Cite for
- Financial Irresponsibility Under Guideline F
- Impact of Medical Issues on Financial Stability
- Insufficient Evidence of Financial Counseling and Debt Management Efforts