Summary
A 37-year-old federal government contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to extensive delinquent debt exceeding $48,000. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, while mitigating conditions FC MC 20(b), FC MC 20(c), FC MC 20(d), and FC MC 20(e) were applied.
The Statement of Reasons detailed several specific debts, including $231 for satellite television, $206 for a dishonored check, approximately $190 across three medical debts, $615 for cable television, and $563 for telephone services. Beyond these, the applicant had defaulted on student loans and failed to file state tax returns for multiple years.
The denial was based on the applicant's substantial delinquent debt and a lack of demonstrated good-faith effort to resolve these financial obligations. The judge concluded that the applicant failed to mitigate the security concerns arising from her financial issues.
Why the Applicant Was Denied
- Applicant has extensive delinquent debt totaling more than $48,000.
- Applicant defaulted on student loans and failed to file state tax returns for multiple years.
- The applicant did not demonstrate a good-faith effort to resolve her financial obligations.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant's extensive medical problems contributed to her financial issues.
- FC MC 20(c)appliedThe Person Received or Is Receiving Counseling for the ProblemApplicant received online credit counseling.
- FC MC 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant established good-faith efforts for some debts.
- FC MC 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtSome debts do not appear on the most recent credit report.
Key Rule Quoted
“The standard that must be met for … assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that …assigning the person to sensitive duties is clearly consistent with the interests of national security.”
Procedural Posture
- SOR issuedFeb 15, 2007
- Answer filedMar 8, 2007
- Hearing heldApr 24, 2007
- Decision dateMay 30, 2007
Cite For
- Denial of Eligibility Due to Extensive Delinquent Debt Under Guideline F
- Impact of Medical Issues on Financial Obligations
- Consideration of Good-faith Efforts in Financial Mitigation