Summary
The applicant, a 53-year-old separated female with a high school education and some college experience, sought a security clearance but was denied due to significant financial issues, including debts exceeding $25,000. The judge found that the applicant's financial history indicated poor self-control and lack of judgment, raising serious concerns about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a creditor in the amount of $12,209 for an account that was charged off. This was a vehicle she purchased in about 2017/2018 and made payment on until about October 2021. The car was later repossessed (1.a). Applicant is indebted to a creditor in the amount of $8,002 for an account that was charged off. This was a vehicle she purchased, could not afford, and was later repossessed (1.b). Applicant is indebted to a creditor in the amount of $2,813 for an account that was placed for collection. This was a personal loan she took out and used to help her cousin who was laid off of her job. She could not afford to make the payments (1.c). Applicant is indebted to a creditor in the amount of $874 for an account that was placed for collection. Applicant stated that she does not recognize the debt, and has not made any effort to contact the creditor to inquire about it (1.d). Applicant is indebted to a creditor in the amount of $772 for an account that was placed for collection. This is a credit card that she could not afford to pay. She has made no effort to contact the creditor to resolve the debt (1.e). Applicant was indebted to a creditor in the amount of $669 for an account that was placed for collection. This is a credit card that she charged up and could not afford to pay. She stated that on January 16, 2025, she made a payment of $245 and the balance was reduced to $345. Since then the debt has increased $524 (1.f). Applicant is indebted to a creditor in the amount of $152 for an account that was charged off. This is a secured credit card where she paid money down to start the account. She was later offered an actual credit card. She thought she had paid the balance on the account when she had not (1.g).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant admitted to all allegations of delinquent debts totaling over $25,000; The applicant failed to demonstrate sufficient mitigation of her financial issues, which included a history of living beyond her means and not prioritizing debt repayment.
Why the Applicant Was Denied
- The applicant admitted to all allegations of delinquent debts totaling over $25,000.
- The applicant failed to demonstrate sufficient mitigation of her financial issues, which included a history of living beyond her means and not prioritizing debt repayment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
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 issuedAug 15, 2024
- Answer filedAug 21, 2024
- Hearing heldAug 14, 2025
- Decision dateSep 22, 2025
Cite For
- Denial Based on Significant Financial Issues Under Guideline F
- Failure to Demonstrate Mitigation of Financial Concerns
- Impact of Financial Irresponsibility on Security Clearance Eligibility