Summary
A 47-year-old accounting technician employed by a federal contractor was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns regarding 20 delinquent consumer debts, primarily credit cards, totaling approximately $26,500.
The applicant attributed these debts to a past relationship, stating that from 2004 to 2019, she acquired 20 credit cards in her name to support a lifestyle demanded by her then-girlfriend and to finance her girlfriend's expensive car restoration hobby. The applicant claimed to be the primary wage earner and paid all bills during this period, and stated she has not applied for or used any credit cards since 2017. While she admitted to the debts, her explanations for their resolution were general, such as "This has been taken care of" or "Working on this now."
Documentation showed one payment of approximately $57 toward a single debt in March 2023, with two payments remaining on that account. Although some debts were no longer on her March 2023 credit report, there was no evidence of payment, suggesting they may have aged off. The applicant provided documentation of current, regular payments on a non-SOR credit card, but no evidence of financial counseling or overall financial stability, such as a budget or bank statements. The denial was based on the applicant's failure to demonstrate sufficient financial responsibility or mitigation efforts, with no applicable mitigating conditions found.
Why the Applicant Was Denied
- The applicant admitted to 20 delinquent debts totaling approximately $26,500.
- The applicant failed to provide evidence of financial responsibility or mitigation efforts.
- No mitigating conditions were found to apply, as the applicant's financial issues were a result of conscious choices rather than circumstances beyond her control.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedNov 7, 2022
- Answer filedDec 8, 2022Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateJun 26, 2023
Cite For
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Impact of Personal Relationships on Financial Decisions
- Insufficient Evidence of Mitigation Efforts in Financial Cases