Summary
A 40-year-old administrator with 16 years of experience at a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to approximately $9,000 in unpaid debts across seven accounts. The Statement of Reasons detailed several specific financial obligations. These included a $747 judgment from December 2002, a $645 credit card debt from February 2008, and another credit card debt of $644.
Further allegations involved a $1,759 balance remaining after a vehicle repossession in May 2005, and a $500 telephone bill from February 2008. The applicant also owed an insurance company $344 for her ex-husband's motorcycle insurance and $6,354 to a creditor after a $15,000 pickup, purchased in November 2003 for her ex-husband, was repossessed.
Despite acknowledging her financial issues and making some payments, the applicant failed to present a reasonable plan for debt resolution or demonstrate sufficient progress in managing her financial obligations. The decision concluded that her financial irresponsibility posed a security risk, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant owes approximately $9,000 on seven debts.
- Applicant failed to rebut or mitigate the government's security concerns under financial considerations.
- Applicant has not established a repayment plan or demonstrated a positive change in financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant has been gainfully employed since her divorce but has made minimal payments to creditors.
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurDebts are numerous and ongoing since 2002.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlNo evidence of financial counseling or a repayment plan.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant's efforts do not amount to a good-faith effort.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances so as to meet her financial obligations.”
Procedural Posture
- SOR issuedMar 10, 2008
- Answer filedApr 7, 2008
- Hearing heldJun 25, 2008
- Decision dateAug 5, 2008
Cite For
- Denial of Security Clearance Due to Significant Unpaid Debts Under Guideline F
- Failure to Demonstrate a Reasonable Plan for Debt Resolution
- Lack of Evidence Showing Financial Responsibility or Improvement