Summary
A 39-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons (SOR) alleged charged-off accounts totaling approximately $13,409, six collection accounts totaling about $3,684, and other delinquent, unpaid debts. While one debt's amount was less than initially alleged ($236 vs. $1,116), the overall total of unresolved delinquent debts exceeded $17,000.
The applicant attributed her financial difficulties to a prior divorce but failed to provide documentary evidence supporting her disputes or substantiating the basis for them. She also did not present evidence of payment arrangements for her SOR debts, establish payment plans, or demonstrate participation in financial counseling.
The judge concluded that the applicant did not mitigate the security concerns. The financial issues were recent and deemed likely to recur, and the applicant failed to provide evidence of payment arrangements or financial counseling. Consequently, the security clearance application was denied.
Why the Applicant Was Denied
- Applicant has unresolved delinquent debts totaling over $17,000.
- She did not provide evidence of payment arrangements or financial counseling.
- The applicant's financial issues were recent and not unlikely to recur.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's divorce was considered a condition beyond her control, but she failed to take responsible actions to address her debts.
- F.2.crejectedThe Individual Has Received or Is Receiving Financial Counseling
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 26, 2017
- Answer filedNov 20, 2017
- Hearing held—Decided on the written record.
- Decision dateJun 11, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Issues