Summary
A 34-year-old unmarried female applicant was denied a security clearance due to significant financial considerations under Guideline F. The applicant faced allegations of multiple delinquent debts totaling over $200,000. These included a mortgage loan account with a $3,995 past-due amount and a $176,697 balance, an $8,751 charged-off auto loan that resulted in a $12,373 court judgment, and a $10,653 federal student loan.
Additionally, the applicant had five credit card accounts in charge-off or collection status totaling $10,765, two medical accounts totaling $946, and an unspecified delinquent account for $463. The applicant admitted to these debts and claimed to be on a repayment plan and receiving financial assistance.
However, the judge found insufficient corroborating evidence to support these claims. The applicant failed to demonstrate a good-faith effort to resolve her debts or to have received financial counseling, leading to the denial of her security clearance application.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts, including a mortgage, auto loan, and credit card accounts.
- The applicant failed to provide corroborating evidence of her claims regarding repayment plans and financial assistance.
- The judge found that the applicant did not demonstrate a good-faith effort to resolve her debts or receive financial counseling.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debt
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's numerous delinquent debts remain unresolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe record is insufficient to establish that her debts were largely attributable to circumstances beyond her control.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant has not received any financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide evidence of payments made in accordance with any repayment plans.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedNov 28, 2016
- Answer filedDec 15, 2016
- Hearing held—Decision made on the record without a hearing.
- Decision dateOct 26, 2017
Cite For
- Insufficient Evidence to Mitigate Financial Issues Under Guideline F
- Importance of Corroborating Evidence in Financial Cases
- Burden of Proof Lies with the Applicant to Demonstrate Financial Responsibility