Summary
A 62-year-old employee of a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The applicant faced 16 delinquent debts totaling approximately $80,839. These included a $38,738 federal tax lien from July 2010, state tax liens of $22,125 and $12,882 from 2012, and a $1,018 judgment from November 2012.
Additional debts included a $15,792 credit card account, a $4,915 department store credit card, and a $934 department store credit card, all placed for collection. Other collection accounts included a $1,028 store account, a $449 bank debt, and multiple medical accounts ranging from $50 to $630.
Despite some efforts to address debts through relief organizations, the applicant failed to present a comprehensive plan for resolving her largest obligations, specifically the state and federal tax liens. The decision noted a lack of sufficient evidence of financial counseling or a clear approach to managing her financial responsibilities, leading to concerns about her reliability and trustworthiness. The clearance was ultimately denied.
Why the Applicant Was Denied
- The applicant has 16 delinquent debts totaling approximately $80,839, including significant state and federal tax liens.
- The applicant failed to provide a clear plan for resolving her largest debts, particularly the tax debts.
- The applicant did not demonstrate sufficient evidence of financial counseling or a comprehensive approach to managing her financial obligations.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurWhile the applicant is attempting to resolve her delinquent accounts, she has no plan for her largest debts.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlAlthough the applicant cited medical issues and a spouse's job loss, she did not demonstrate responsible behavior in managing her debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThere is no evidence of financial counseling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant is making payments on some debts but has not resolved her largest debts.
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant provided evidence that some debts were duplicates.
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 issuedAug 5, 2014
- Answer filedAug 13, 2014
- Hearing held—Decided on written record.
- Decision dateAug 17, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Financial Mismanagement on Security Clearance Eligibility
- Consideration of Mitigating Conditions in Financial Cases