Summary
The applicant, a 39-year-old defense contractor employee, faced security concerns under Guideline F due to numerous delinquent debts totaling approximately $37,000, including unpaid medical bills and a mortgage. Despite some efforts to address her debts, the applicant's financial issues were ongoing and not sufficiently mitigated, leading to the denial of her security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a is a collection account in the amount of $6,262 (1.a). SOR ¶ 1.b is a collection account (cable) in the amount of $309 (1.b). SOR ¶ 1.c is a medical account for $27 (1.c). SOR ¶ 1.d is for a medical account in the amount of $15 (1.d). SOR ¶ 1.e is for a medical account in the amount of $12 (1.e). SOR ¶ 1.f is for a medical account in the amount of $13 (1.f). SOR ¶ 1.g is for a medical account in the amount of $12 (1.g). SOR ¶ 1.h is another medical account in the amount of $14 (1.h). SOR ¶ 1.i is a collection account for medical in the amount of $318 (1.i). SOR ¶1.j is a charged off medical account in the amount of $102 (1.j). SOR 1.k is a medical debt of $270 (1.k). SOR 1.l is for a collection account for a mortgage in the amount of $31,481 (1.l). SOR 1.m is for a medical account $672 (1.m). SOR 1.n is a charged off account in the amount of $848 which Applicant denies (1.n). SOR 1.o is a charged off account in the amount of $575 which Applicant denies (1.o). SOR 1.p is a phone account charged off in the amount of $170 (1.p). SOR 1.q is another charged off account for a phone in the amount of $706 (1.q). SOR 1.r is a charged off account in the amount of $66 which Applicant denies (1.r). SOR 1.s is for a collection account in the amount of $695 which Applicant denies (1.s).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has numerous delinquent debts and has not acted responsibly in resolving them; She has not received financial counseling and lacks a repayment plan for many debts; The applicant's financial issues are ongoing and raise questions about her reliability and judgment.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts and has not acted responsibly in resolving them.
- She has not received financial counseling and lacks a repayment plan for many debts.
- The applicant's financial issues are ongoing and raise questions about her reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial problems are ongoing and not infrequent.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some issues stemmed from an accident and divorce, the applicant did not act responsibly in addressing her debts.
- AG ¶ 20(c)rejectedReceived Counseling or Evidence of Resolving IssuesThe applicant has not received financial counseling and lacks a budget.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant waited years before attempting to resolve her financial issues.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtsThe applicant did not provide sufficient documentation to dispute the debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 19, 2008
- Answer filedJul 21, 2008
- Hearing heldOct 15, 2008
- Decision dateOct 30, 2008
Cite For
- Financial Responsibility Under Guideline F
- Impact of Ongoing Financial Issues on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts to Resolve Debts