Summary
The applicant, a 31-year-old employed planner and scheduler for a defense contractor, faced security clearance denial under Guideline F due to significant unresolved financial issues stemming from two divorces and periods of unemployment. Despite some payments on minor debts, the applicant failed to demonstrate responsible financial management or a plan to address her substantial delinquent debts, leading to concerns about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a collection account for a bank for $880 (1.a). another collection account for a different bank for $610 (1.b). two medical debts for $1,108 (1.c). a medical debt for $55 (1.d). a collection account for cable service for $99 (1.e). a charged-off account for $691 (1.f). a credit card account charged off for $394 (1.g). a telephone service debt in collection for $665 (1.h). a credit card account placed for collection for $728 (1.i). a credit card account charged off for $8,958 (1.j). a collection account for $793 (1.k). a medical account in collection for $903 (1.l). a collection account for $752 (1.m). a collection account for $640 (1.n). a cable debt in collection for $560 (1.o). For Applicant (duplicate of SOR 1.a) (1.p). Against Applicant (1.q).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has a history of serious and recurring financial difficulties, including multiple delinquent debts; The applicant failed to establish a meaningful track record of debt repayment or a credible plan to resolve her financial issues; The applicant's financial irresponsibility raises doubts about her reliability and trustworthiness in handling classified information.
Why the Applicant Was Denied
- The applicant has a history of serious and recurring financial difficulties, including multiple delinquent debts.
- The applicant failed to establish a meaningful track record of debt repayment or a credible plan to resolve her financial issues.
- The applicant's financial irresponsibility raises doubts about her reliability and trustworthiness in handling classified information.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurMost debts are still unpaid and current, indicating ongoing financial issues.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant has not established that her financial issues are beyond her control or that she has acted responsibly.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant's payments on only two small debts do not constitute a good-faith effort.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances in such a way as to meet her financial obligations.”
Procedural Posture
- SOR issuedOct 8, 2009
- Answer filedOct 31, 2009
- Hearing heldMar 5, 2010Applicant elected to proceed on the written record.
- Decision dateJun 11, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Responsible Financial Management for Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations in Security Clearance Cases