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Summary

The applicant, a 46-year-old single woman employed by a defense contractor, sought a trustworthiness determination under Guideline F due to financial difficulties. The judge found that the applicant had over $12,000 in unpaid debts, which raised concerns about her reliability and trustworthiness. Ultimately, the applicant's lack of action to resolve her debts led to a denial of her request for a trustworthiness determination.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant admits that she is indebted in the amount of $551 for a judgment entered against her in 2001 in relation to a lease. This debt has not been paid (1.a). The Applicant admits that she is indebted to a loan company in the amount of $1,368 for a judgment entered against her in 2001. This debt has not been paid (1.b). The Applicant admits that she is indebted to a credit bureau in the amount of $2,254 for a judgment entered against her in 2002. This debt has not been paid (1.c). The Applicant denies that she owes a debt to an automobile dealership in the amount of $5,020. She states in her Answer at page 1, “I am disputing the amount of the balance owed.” The automobile that she purchased stopped working after six months and she had the dealer pick it up because she could not afford to fix it. The most recent credit report in the record, dated October 20, 2008, shows that the Applicant was $2,918 past due. In a set of Interrogatories served on her, the Applicant admits to owing approximately $3,278 and states, “No action taken. Filing for bankruptcy.” Based on all of the available evidence, I find that she does owe a debt to this creditor, and the amount is approximately $3,278. This debt has not been paid (1.d). The Applicant admits that she is indebted to a collection agency in the amount of $126 for a cable television bill. This debt has not been paid (1.e). The Applicant admits that she is indebted to a second collection agency in the amount of $318 for a telephone bill. This debt has not been paid (1.f). The Applicant denies that she is indebted to a third collection agency in the amount of $3,225 for an account owed to a loan company. She states in her Answer at page 1, “The amount I borrowed was for $700.00 from [the loan company]. I will be contacting the business and negotiating a settlement on this debt within this year.” The record shows that this debt has an account number ending in 50108. The evidence of record is sufficient to show that the Applicant does indeed owe two debts to this creditor. The Applicant has had almost a year to resolve the circumstances of these two debts. She has not done so. Based on the available evidence, I find that she owes two accounts to this creditor, that the amounts are correct, and that she has paid neither one (1.g). The Applicant denies that she is indebted to the third collection agency in the amount of $716 for a second account owed to a loan company. She states in her Answer at page 2, “This should be for only one loan, yet there is two accounts that is stated that I owed.” The record shows that this account has an account number ending with 50107. As stated above, the Applicant does admit owing at least $700 to this creditor. The evidence of record is sufficient to show that the Applicant does indeed owe two debts to this creditor. The Applicant has had almost a year to resolve the circumstances of these two debts. She has not done so. Based on the available evidence, I find that she owes two accounts to this creditor, that the amounts are correct, and that she has paid neither one (1.h). The Applicant admits that she is indebted to a fourth collection agency in the amount of $932. This debt has not been paid (1.i).

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). The decision turned on the following: The applicant has over $12,000 in past due debts, all of which have been due for several years; The applicant has not taken affirmative action to resolve her financial issues despite being employed since January 2008; The applicant's financial difficulties are longstanding and have not been mitigated by any evidence of responsible behavior.

Why the Applicant Was Denied

• The applicant has over $12,000 in past due debts, all of which have been due for several years.
• The applicant has not taken affirmative action to resolve her financial issues despite being employed since January 2008.
• The applicant's financial difficulties are longstanding and have not been mitigated by any evidence of responsible behavior.

Conditions Referenced

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 issuedMar 2, 2009
• Answer filedApr 16, 2009
• Hearing held—Decision made without a hearing.
• Decision dateSep 29, 2009

Cite For

• Financial Overextension as a Disqualifying Condition Under Guideline F
• Lack of Affirmative Action to Resolve Debts as a Basis for Denial
• The Importance of Demonstrating Responsible Financial Behavior for Trustworthiness Determinations