Summary
A 57-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent debts totaling $29,891. The Statement of Reasons detailed several specific allegations, including a $2,899 state income tax balance, a $1,463 judgment owed to an automobile company, a $14,457 automobile loan, various medical debts, and a $573 telephone bill.
The applicant disputed responsibility for these debts, claiming identity theft, improper service, prior payment, or lack of recognition. For instance, she asserted payments were made on a 2013 tax lien, disputed the automobile judgment due to improper service, and claimed the $14,457 automobile loan was paid and unfamiliar. She also stated some medical debts were paid by hospitals and others were unrecognized, and that the telephone bill was paid and disputed with a consumer federal agency.
Despite these claims, the applicant failed to provide sufficient documentary evidence to substantiate her assertions regarding debt payments and disputes. She also did not demonstrate participation in financial or credit counseling. The adjudicator concluded that the ongoing unresolved delinquent debts raised doubts about her reliability and judgment, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant failed to provide documentary evidence to confirm her assertions regarding debt payments and disputes.
- She did not demonstrate participation in financial or credit counseling.
- The applicant's ongoing unresolved delinquent debts raised doubts about her reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Income Tax Returns
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of responsible management of her tax obligations.
- AG ¶ 20(c)rejectedReceived Financial CounselingNo evidence of participation in financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not submit sufficient evidence of good-faith efforts to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsInsufficient proof was provided to substantiate the basis of the disputes.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityNo proof of arrangements with the tax authority was submitted.
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 issuedOct 2, 2017
- Answer filedOct 21, 2017Requested decision on the written record without a hearing.
- Hearing held—No hearing; case decided on the written record.
- Decision dateJul 10, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Providing Documentary Evidence in Financial Disputes
- Impact of Unresolved Debts on Security Clearance Eligibility