Summary
A 57-year-old applicant was denied a security clearance under Guideline F (Financial Considerations) due to delinquent debts totaling $24,073. The Statement of Reasons cited one delinquent consumer account for $23,928 and two minor delinquent medical debts, each totaling $145. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
While the applicant resolved the minor medical debts, the significant credit card debt remained a primary concern. The applicant claimed unauthorized bank activity related to this debt but failed to provide corroborating evidence. Furthermore, the applicant acknowledged waiting for the debt to fall off her credit report, which was not considered a good faith effort toward resolution.
Despite the application of mitigating conditions under AG ¶ 20(a), (b), (c), (d), and (e), the clearance was denied. The decision concluded that insufficient evidence was presented to demonstrate that the applicant's financial problems were unlikely to recur, indicating a lack of responsible management for the outstanding debt.
Why the Applicant Was Denied
- The applicant did not provide evidence to corroborate claims of unauthorized bank activity related to the significant debt.
- The applicant acknowledged waiting for the debt to fall off her credit report, which was not considered a good faith effort to resolve the issue.
- Insufficient evidence was presented to demonstrate that the applicant's financial problems were unlikely to recur.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial problems were attributed to periods of unemployment.
- AG ¶ 20(a)rejectedBehavior Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(c)rejectedReceived Financial CounselingInsufficient documentation provided to support claims of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to resolve the significant debt.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtThe applicant did not provide documented proof to substantiate the basis of the dispute.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 12, 2017
- Answer filedAug 1, 2017
- Hearing heldApr 27, 2018
- Decision dateOct 19, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Significant Debt Under Guideline F
- Failure to Demonstrate Good Faith Efforts in Resolving Financial Obligations
- Impact of Financial Distress on Reliability and Trustworthiness in Security Clearance Evaluations.