Summary
A 53-year-old woman with a bachelor's degree was denied a security clearance under Guideline F, Financial Considerations, due to approximately $10,000 in unresolved delinquent debts. The applicant admitted to owing several creditors for past-due accounts, including $1,238, $1,885, $1,082, $505, and $296, for which she claimed to have payment arrangements but provided no further information. One debt of $224 was resolved, with a credit report confirming it as "paid charge off."
The government did not sufficiently prove delinquency for three other alleged debts: a $1,812 mobile phone bill and two accounts for $1,081 and $343, as the applicant disputed these or the record was unclear. Despite the applicant attributing her financial difficulties to divorce and childcare, she did not provide evidence of financial counseling or a concrete plan to manage her debts.
Ultimately, the clearance was denied because the applicant incurred approximately $10,000 in delinquent debts, most of which remained unresolved. She failed to demonstrate that her financial difficulties were under control or that she had made a good-faith effort to repay her obligations.
Why the Applicant Was Denied
- Applicant incurred approximately $10,000 in delinquent debts, the majority of which remain unresolved.
- Applicant did not demonstrate that her financial difficulties are under control or that she has made a good-faith effort to repay her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Pay Debts Regardless of Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not provide sufficient evidence of responsible handling of her debts since 2015.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceNo evidence of financial counseling or budget information was provided.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsApplicant did not provide documentary evidence to support claims of payment arrangements.
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtDisputes were documented in credit reports, and some allegations were found in favor of the applicant.
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 issuedJun 8, 2016
- Answer filedJul 7, 2016
- Hearing held—Decided on the written record without a hearing.
- Decision dateDec 7, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Financial Responsibility and Control
- Impact of Financial Issues on Security Clearance Eligibility