Summary
A 31-year-old single woman, employed by a defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues totaling approximately $18,314. The Statement of Reasons detailed several allegations, including an admitted debt of $8,847 for a repossessed automobile and another admitted past-due debt of $3,669. The applicant, however, denied owing a $230 past-due debt to W College.
The denial was based on the persistence of these unresolved debts over several years. The applicant failed to provide evidence of financial counseling or a budget, which would have demonstrated responsible financial management.
Ultimately, the applicant's financial difficulties raised concerns about her reliability and trustworthiness, leading to the denial of her security clearance. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b) and AG ¶ 20(d) were applied.
Why the applicant was denied
- The applicant has unresolved debts totaling approximately $18,314, which have persisted for several years.
- The applicant did not provide evidence of financial counseling or a budget to demonstrate responsible financial management.
- The applicant's financial difficulties raise questions about her reliability and trustworthiness, as outlined in AG ¶ 18.
Conditions referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate responsible behavior regarding her debts despite claiming job loss.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant submitted no evidence of payments or efforts to resolve her debts.
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 issuedMar 16, 2015
- Answer filedApr 30, 2015Applicant requested a decision without a hearing.
- FORM submittedSep 15, 2015
- Decision dateJul 27, 2016
Cite for
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Responsible Financial Behavior in Security Clearance Cases
- Impact of Financial Irresponsibility on Reliability and Trustworthiness Assessments