Summary
A 35-year-old security specialist for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant delinquent debts. The Statement of Reasons detailed numerous outstanding financial obligations, including multiple credit card accounts in collection ranging from $38 to $3,183, a student loan over 180 days delinquent for $859, and a charged-off financial company loan for $1,483.
Additional debts included several cell phone accounts, utility bills, a furniture company account, a television service account, a store account, a photography studio account, and numerous medical accounts in collection, with individual amounts ranging from $17 to $1,432. Two video store accounts, each for $42, were also cited.
Despite the applicant's employment history and positive work performance, the judge found insufficient evidence of a good-faith effort to resolve her financial problems. The denial was based on the applicant's inability or unwillingness to satisfy financial obligations, a lack of a meaningful debt repayment track record, and the determination that her financial problems were not solely due to circumstances beyond her control, as many debts were incurred after her divorce.
Why the Applicant Was Denied
- The applicant has a history of significant delinquent debts, indicating an inability or unwillingness to satisfy financial obligations.
- The applicant did not demonstrate a meaningful track record of debt repayment or a systematic method for managing her finances.
- The applicant's financial problems were not shown to be solely due to circumstances beyond her control, as many debts were incurred after her divorce.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's unpaid debts are considered current debts.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problems Were Largely Beyond the Person's ControlThe applicant has been continuously employed and did not take sufficient actions to resolve her financial problems.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant has not established a systematic method for managing her debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedMay 18, 2009
- Answer filedJun 9, 2009
- Hearing heldSep 1, 2009
- Decision dateNov 17, 2009
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Financial Issues
- Impact of Financial Difficulties on Security Clearance Eligibility