Summary
A 38-year-old married woman with one child was denied a security clearance under Guideline F (Financial Considerations) due to approximately $40,000 in delinquent debt. The Statement of Reasons detailed multiple allegations, including delinquent medical bills totaling approximately $700 across several entries, and delinquent student loan payments totaling approximately $39,300, also listed multiple times. One medical debt was also disputed.
The decision to deny the clearance was based on the applicant's failure to adequately mitigate her financial issues. While she entered a payment plan for her student loans, she did not provide sufficient documentary evidence of ongoing payments beyond her initial contribution. Additionally, she disputed one medical debt but failed to provide documentation to support her claim or demonstrate efforts to resolve it.
The adjudicator considered Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c), and applied Mitigating Conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e). However, the lack of sustained effort and documentation to resolve the substantial delinquent debt ultimately led to the denial of her security clearance.
Why the applicant was denied
- Applicant has approximately $40,000 in delinquent debt, primarily from student loans and medical bills.
- She provided no documentary evidence of ongoing payments after her initial payment under the student loan plan.
- Applicant disputed one medical debt but did not provide documentation to support her dispute or efforts to resolve it.
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 Largely Beyond the Person's ControlApplicant did not demonstrate that her financial difficulties were beyond her control.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedApplicant did not provide evidence of ongoing payments to creditors.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant's evidence of payments was insufficient.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtApplicant's dispute of one medical debt was unsupported by documentation.
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 issuedMay 12, 2008
- Answer filedJun 18, 2008Applicant admitted all allegations except one.
- Hearing held—
- Decision dateNov 25, 2008
Cite for
- Financial Considerations Under Guideline F
- Insufficient Evidence of Debt Resolution
- Impact of Financial Delinquencies on Security Clearance Eligibility