Summary
A 28-year-old executive assistant was denied a security clearance under Guideline F, Financial Considerations, due to over $30,000 in delinquent debts across 43 past-due accounts. Specific allegations included a $2,238 charge for breach of lease in November 2002, an $11,000 debt resulting from the voluntary surrender of a 2001 Nissan, and a $3,823 default judgment obtained by a landlord against the applicant and her husband. The applicant also stated that two other debts had been removed from her credit report.
The denial was based on the applicant's substantial outstanding debt and her failure to demonstrate sufficient progress in addressing these financial obligations. Disqualifying conditions related to financial issues were raised, while several mitigating conditions were considered.
However, the applicant was ultimately found not to have successfully mitigated the security concerns associated with her financial history. Despite being current on her car payments, the overall pattern of delinquent debt led to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant owes more than $30,000 on 43 past due and delinquent accounts.
- Applicant has not successfully mitigated financial considerations concerns.
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 Occurred Under Circumstances Unlikely to RecurAlthough some financial problems were due to medical issues and unemployment, more than 40 debts remain unpaid.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant has not acted reasonably in addressing her debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemInsufficient evidence showing that the financial problem is being resolved or is under control.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsNo good faith effort to repay delinquent debts was demonstrated.
- AG ¶ 20(e)notedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedMay 23, 2008
- Answer filedJun 13, 2008
- Hearing heldAug 5, 2008
- Decision dateAug 26, 2008
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Requirements for Demonstrating Rehabilitation in Financial Matters