Summary
A 60-year-old female veteran was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts. The Statement of Reasons detailed six separate consumer or credit card accounts, totaling over $34,000, which were either charged off or in collection. These debts included amounts of $2,673, $5,126, $8,110, $5,059, $8,132, and $4,937.
The applicant acknowledged her financial difficulties, which began accumulating in 2008, and had considered bankruptcy. However, she failed to provide any evidence of payments made towards these debts or a concrete plan for their resolution.
The judge determined that the applicant did not mitigate the security concerns, despite the application of mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). The unresolved delinquent debts and the absence of a reasonable repayment plan led to the conclusion that her financial problems continued to raise doubts about her reliability and trustworthiness, resulting in the denial of her security clearance.
Why the Applicant Was Denied
- Applicant has unresolved delinquent debts totaling over $34,000 that began accumulating in 2008.
- Applicant failed to provide evidence of payments or a reasonable plan to resolve her debts.
- The applicant's financial problems continue to cast doubt on her reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant's financial problems began with the failure of her business.
- AG ¶ 20(c)rejectedReceived Counseling or Indications That the Problem Is Under ControlApplicant did not provide evidence of payments or arrangements with creditors.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsApplicant has not shown sufficient evidence of good-faith efforts to resolve 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 issuedFeb 28, 2016
- Answer filedApr 27, 2016Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateMar 13, 2017
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Importance of Providing Evidence of Debt Resolution Efforts
- Impact of Financial Instability on Security Clearance Eligibility