Summary
A 59-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The applicant had 11 delinquent accounts, totaling approximately $10,408, as evidenced by credit reports from October 2015 and July 2016. These accounts included two medical collections totaling $327, with the remainder appearing to be consumer debts.
The applicant attributed her indebtedness to a job loss and two months of unemployment in 2012, followed by underemployment, which reduced her annual income from about $70,000 to approximately $40,000. She stated she was working with a financial counselor and provided a client action plan dated October 24, 2016, which reflected a gross annual income of about $39,000.
However, the judge found no documentation in the record to establish that any of the 11 delinquent accounts had been paid, settled, or were subject to a payment arrangement. Despite the connection between her financial problems and unemployment, the judge concluded that the applicant had not acted responsibly given the lack of evidence of resolution efforts. The application was denied due to insufficient evidence to mitigate the security concerns stemming from her financial irresponsibility and lack of documentation.
Why the Applicant Was Denied
- The applicant failed to present sufficient evidence to explain or mitigate her financial problems.
- The applicant has 11 delinquent accounts totaling about $10,408, with no evidence of resolution or repayment efforts.
- The applicant's financial issues raise doubts about her reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial problems were connected to unemployment, but she did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThere was no documentation to establish that the financial counseling was effective or that the problems were being resolved.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide evidence of a good-faith effort to repay her delinquent accounts.
Key Rule Quoted
“No one has a right to a security clearance.”
Procedural Posture
- SOR issuedOct 11, 2016
- Answer filedNov 7, 2016Requested decision based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateOct 1, 2017
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Importance of Documentation in Financial Counseling Cases
- Burden of Proof on Applicant to Demonstrate Eligibility for Security Clearance