Summary
The applicant, a 38-year-old financial analyst, faced security clearance denial under Guideline F due to significant financial concerns, including approximately $51,000 in charged-off and delinquent debts. Despite acknowledging her debts and providing some evidence of payments, she failed to demonstrate a consistent track record of financial responsibility, leading the judge to conclude that her financial issues raised doubts about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Judgment entered against Applicant in December 2019 for $4,444 (1.a). Credit card account charged-off for $21,894 (1.b). Unsecured debt charged-off for $7,371 (1.c). Credit card account charged-off for $6,201 (1.d). Consumer debt charged-off for $1,352 (1.e). Credit card account placed for collection for $3,012, resolved in 2019 (1.f). Credit card account placed for collection for $1,200, resolved in 2019 (1.g). Credit card account placed for collection for $4,408 (1.h). Medical debts placed for collection totaling $1,338, attributed to the birth of her son (1.i). Medical debts placed for collection totaling $1,338, attributed to the birth of her son (1.j). Medical debts placed for collection totaling $1,338, attributed to the birth of her son (1.k). Medical debts placed for collection totaling $1,338, attributed to the birth of her son (1.l). Medical debts placed for collection totaling $1,338, attributed to the birth of her son (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant admitted to all allegations in the Statement of Reasons, including significant charged-off and delinquent debts; She failed to provide sufficient documentation showing a consistent effort to resolve her debts, with only two of the thirteen debts being resolved in the last four years; The judge found that her financial issues were ongoing and not isolated, casting doubt on her reliability and trustworthiness.
Why the applicant was denied
- The applicant admitted to all allegations in the Statement of Reasons, including significant charged-off and delinquent debts.
- She failed to provide sufficient documentation showing a consistent effort to resolve her debts, with only two of the thirteen debts being resolved in the last four years.
- The judge found that her financial issues were ongoing and not isolated, casting doubt on her reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's medical debts were attributed to her son's premature birth, which occurred under circumstances unlikely to recur.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide sufficient documentation to show a good-faith effort to repay or resolve the majority of her debts.
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 issuedJul 16, 2021
- Answer filedAug 4, 2021
- Hearing heldMay 16, 2022via video teleconference
- Decision dateAug 1, 2022
Cite for
- Insufficient Mitigation of Financial Concerns Under Guideline F
- Ongoing Financial Issues Impacting Reliability and Trustworthiness
- The Importance of Demonstrating a Consistent Track Record of Financial Responsibility