Summary
A 51-year-old high school graduate was denied a security clearance due to significant financial concerns under Guideline F. The applicant had 23 delinquent debts totaling approximately $82,700, which included a federal tax debt of $18,827 incurred as an independent contractor, a 2009 judgment for $1,374 with no evidence of payment, and a delinquent student loan of $15,217, which credit reports showed in collection despite the applicant's claim of rehabilitation and forbearance.
Other debts included medical expenses, a $26,194 car loan for a voluntarily repossessed vehicle, and a timeshare debt that the applicant denied owing after informing the creditor she could not afford the maintenance fees. The applicant attributed her financial difficulties to unemployment, underemployment, and health issues, including a 2014 diagnosis of congestive heart failure.
Despite these explanations, the applicant failed to provide sufficient evidence of actions taken to address her financial obligations or to dispute the legitimacy of certain debts. The judge concluded that the applicant did not mitigate the financial concerns, demonstrating an inability or unwillingness to satisfy debts, leading to the denial of eligibility for access to sensitive information.
Why the Applicant Was Denied
- The applicant has 23 delinquent debts totaling approximately $82,700, indicating an inability or unwillingness to satisfy debts.
- The applicant did not provide sufficient evidence of actions taken to address her financial obligations or to dispute the legitimacy of certain debts.
- The applicant's financial problems were not resolved, and there was insufficient evidence of responsible behavior regarding her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant attributed her financial problems to unemployment, underemployment, and health issues.
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedSep 22, 2015
- Answer filedOct 13, 2015Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateSep 29, 2016
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Financial Irresponsibility on Trustworthiness
- Requirements for Demonstrating Responsible Behavior in Addressing Debts