Summary
A 49-year-old corporate recruiter with a master's degree was denied a security clearance under Guideline F, Financial Considerations, due to multiple unresolved delinquent accounts totaling approximately $23,065. The applicant, employed since May 2007, faced allegations concerning nine specific accounts, including medical, retail, telephone, and credit card debts, as well as a charged-off bank account. These accounts were placed for collection or charged off between May 2007 and May 2009.
Disqualifying conditions were raised, while several mitigating conditions were considered. However, the applicant failed to demonstrate responsible management of her debts.
The denial was based on the applicant's multiple unresolved delinquent accounts, her failure to follow through on attempts to resolve these debts (including stopping payments to a debt repayment company), and her lack of participation in financial counseling or demonstration of a good-faith effort to repay overdue creditors. These factors led to concerns regarding her reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has multiple unresolved delinquent accounts totaling approximately $23,065.
- The applicant failed to follow through on attempts to resolve her debts, including stopping payments to a debt repayment company.
- The applicant did not attend financial counseling or demonstrate a good-faith effort to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to RecurWhile the applicant experienced financial difficulties due to unemployment, she has not resolved any delinquent accounts since becoming employed.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlAlthough the applicant faced unemployment, she did not act responsibly in resolving her debts after regaining employment.
- AG ¶ 20(c)rejectedReceived Counseling or Evidence of Problem ResolutionThe applicant did not attend financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant made initial attempts but did not follow through with payments towards her delinquent accounts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 23, 2009
- Answer filedDec 18, 2009
- Hearing heldApr 20, 2010
- Decision dateJun 22, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating Responsible Financial Management for Clearance Eligibility
- Impact of Financial Counseling on Security Clearance Decisions