Summary
A 41-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to approximately $75,000 in unresolved financial debts. The Statement of Reasons detailed several overdue accounts, including collection accounts of $41,703, $28,724, and $2,489. Additionally, past-due accounts were cited for $1,319 (with a remaining balance of approximately $20,046), $622 (with a remaining balance of approximately $7,616), and an education account for $343 (with a remaining balance of approximately $5,242). Two medical accounts for $85 and $79 were also listed.
The denial was based on the applicant's failure to resolve or significantly reduce these delinquent debts. Although the applicant acknowledged her financial difficulties and made some payments, she did not provide independent evidence of debt resolution or a good-faith effort to repay creditors.
Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b) and AG ¶ 20(d) were applied. Ultimately, the applicant's incorrect assumption regarding student loan deferment further complicated her financial situation, leading to the conclusion that the financial concerns were not mitigated.
Why the Applicant Was Denied
- The applicant accumulated significant delinquent debts totaling approximately $75,000, which were not resolved or reduced.
- No independent evidence was presented to demonstrate a good-faith effort to repay overdue creditors or resolve debts.
- The applicant's financial difficulties were exacerbated by her incorrect assumption regarding the deferment of her student loans.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some financial problems were beyond her control, the applicant's incorrect assumption about her student loans was not.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not initiate a good-faith effort to repay overdue creditors.
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedDec 2, 2015
- Answer filedJan 21, 2016Requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateFeb 16, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Debts Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility