Summary
A 32-year-old government contractor and former Marine was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial delinquencies totaling $58,259. The applicant faced allegations concerning 16 separate debts, including amounts owed to collection companies, delinquent retail and medical accounts, and multiple delinquent credit union accounts. While some debts were acknowledged, the applicant claimed two alleged debts were duplicates of others.
The denial was based on the applicant's failure to demonstrate responsible financial behavior or effective mitigation of her debts. Disqualifying conditions under Guideline F, specifically regarding a history of not meeting financial obligations and an inability or unwillingness to satisfy debts, were raised. Although mitigating conditions such as the debts not being recent, the financial problems being largely beyond the applicant's control, and a good-faith effort to resolve the debts were considered, they were not found sufficient.
Ultimately, the applicant was delinquent on 16 debts, with only three resolved, and failed to show a good-faith effort to repay her obligations. Her financial problems were recent, and she did not provide sufficient evidence of mitigation, leading to the conclusion that she lacked the judgment and reliability required for a security clearance.
Why the Applicant Was Denied
- The applicant was delinquent on 16 debts totaling $58,259, with only three resolved.
- She failed to demonstrate a good-faith effort to repay her debts or to address her financial obligations in a timely manner.
- The applicant's financial problems were recent and she did not provide sufficient evidence of mitigation.
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, Was Infrequent, or Unlikely to RecurThe applicant's financial problems are recent and unresolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not demonstrate that her debts were caused by circumstances beyond her control.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant's participation in a budgeting class did not indicate her financial problems were under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not document any payments on her legitimate delinquencies.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not provide documented proof to substantiate her disputes.
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 issuedNov 10, 2015
- Answer filedDec 8, 2015
- Hearing heldMay 9, 2016Hearing convened as scheduled.
- Decision dateJul 15, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility