Summary
The applicant, a 26-year-old employee of a defense contractor, sought eligibility for a public trust position under Guideline F concerning financial considerations. The applicant admitted to multiple delinquent accounts totaling approximately $16,972 but failed to provide sufficient evidence of efforts to resolve these debts. The administrative judge denied the application, citing the applicant's inability to mitigate trustworthiness concerns related to her financial history.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This is a personal loan with a past-due balance of $4,565 that was placed for collection and charged off in July 2014. It was subsequently reported that the charged-off amount was $4,590. Applicant secured the loan to financially assist her mother, but she was unable to make the $196 monthly payments. Applicant contended she contacted the creditor in 2015 in an effort to resolve the account, but the creditor wanted a one-time payment of $1,500 to settle the account. Applicant stated she did not have that amount and negotiations ceased. She has made no further resolution efforts. The account remains unresolved (1.a). This is a personal loan with an unpaid balance of $833 and a past-due balance of $724 that was placed for collection and $833 was charged off. It was subsequently reported that the charged-off amount was $724. Applicant secured the loan to financially assist her mother with the rent and to make Applicant’s car payment, but she was unable to make the $102 monthly payments. Applicant contended she contacted the creditor in an effort to resolve the account, and she advised the creditor that she would start making payments 'soon.' She has made no further resolution efforts. The account remains unresolved (1.b). This is a personal loan with an unpaid balance of $647 and a past-due balance of $682 that was placed for collection and $647 was charged off. Applicant secured the loan to make car payments, but she was unable to make the $96 monthly payments. Applicant claimed she had made a monthly cash payment into a lock box, but the creditor refused to acknowledge that payment. She never reported the incident to the authorities, nor has she made any further resolution efforts. The account remains unresolved (1.c). This is a cable account with an unpaid and past-due balance of $299 that was placed for collection and charged off. Applicant’s mother failed to make the payment, and Applicant was unable to make the $75 monthly payments. Applicant contended she contacted the creditor in February 2016 in an effort to resolve the account. In her Answer to the SOR, Applicant claimed the settlement was for $175, but during her hearing, she said it was for $150. Because she did not have the funds at the time, Applicant indicated she was saving up the funds to make her payment. She offered no evidence of any payments. The account remains unresolved (1.d). This is a medical account with an unpaid and past-due balance of $16 that was placed for collection. Applicant stated she was unaware of the account, but indicated that she would make a $16 payment on April 29, 2016. Applicant contended she made the payment by money-order, but she failed to submit any documentation to support her contention. In the absence of such documentation, the account remains unresolved (1.e). This is a bank credit card account with a past-due balance of $1,058 that was placed for collection and sold to a debt purchaser. Applicant contended that her father had access to her social security number, and that he opened the account in her name without her knowledge or authorization. Because of their relationship, she did not report the activity to the authorities. In her e-QIP, Applicant indicated an intent to pay off the account. Applicant changed her plans, and she subsequently claimed that she disputed the account with the creditor and a credit reporting agency as unauthorized. She claimed her disputes were successful and the account was removed from her credit report, but she failed to submit any documentation to support her contention. In the absence of such documentation, the account remains unresolved (1.f). There are two student loans with unpaid balances of $6,089 and $2,990 that were past due and placed for collection when they fell into a default status. Applicant contended that she was in the hardship program and consolidated the two loans, and that she has been making $10 monthly payments to remove the loans from the default status. Applicant claims that the consolidated loans are now rehabilitated, but she failed to submit any documentation to support her contentions or claims. In the absence of such documentation, the accounts remain unresolved (1.g). This is an automobile insurance account with an unpaid balance of $475 that was placed for collection. Applicant claimed that the insurance company raised her rates because of a purported accident, but she denied ever having the accident. Nevertheless, she continued to pay her normal premium rather than the increased premium and she eventually fell behind in her payments. Applicant contended that she disputed the debt with a credit reporting agency and that the debt was removed from her credit report. Applicant failed to submit any documentation to support her contention. In the absence of such documentation, the account remains unresolved (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant failed to provide documentary evidence of good-faith efforts to resolve her delinquent accounts; The applicant's financial difficulties were ongoing and not sufficiently explained as being beyond her control; The applicant did not demonstrate responsible financial behavior or seek financial counseling.
Why the Applicant Was Denied
- The applicant failed to provide documentary evidence of good-faith efforts to resolve her delinquent accounts.
- The applicant's financial difficulties were ongoing and not sufficiently explained as being beyond her control.
- The applicant did not demonstrate responsible financial behavior or seek financial counseling.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
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 [sensitive] information.”
Procedural Posture
- SOR issuedFeb 28, 2016
- Answer filedApr 1, 2016
- Hearing heldDec 7, 2016
- Decision dateFeb 13, 2017
Cite For
- Failure to Mitigate Financial Trustworthiness Concerns Under Guideline F
- Importance of Providing Documentary Evidence in Financial Cases
- Ongoing Financial Difficulties as a Basis for Denial of Public Trust Eligibility