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Summary

The applicant, a 33-year-old logistician, faced security clearance denial under Guideline F due to significant financial issues, including 21 accounts in collection totaling over $23,000. Despite some improvement in her credit scores and current payments on recent debts, the applicant failed to demonstrate responsible financial management or mitigate the government's concerns regarding her past debts.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Electric bill. $130 Unpaid. Applicant failed to pay her electric bill when she moved to Puerto Rico (1.a). Allied/Direct TV $80 Unpaid. Denies having this cable service provider (1.b). Palisades/AT&T $247 Unpaid. Denies having this telephone provider (1.c). Palisades/Citibank furniture bill $6,446 Applicant asserts she paid the furniture debt, but provided no documentation (1.d). Midland Credit MGMT Inc Fingerhut Credit Advantage. $2,282 Unpaid. $2,324 collection account. Applicant has no idea about the nature of this debt and has not tried to contact the creditor (1.e). WAMU/PRVDN Washmutual/Prov $1,814 Unpaid. $1,974 charged off as bad debt. Credit limit was $500. Applicant has no idea about the nature of this debt (1.f). Living Fund/Sears $1,271 Unpaid. Applicant admits having the department store account and not paying it when she left the country. (Tr. 35) Deleted from November 2008 CBR (1.g). Living Fund/Sears $1,271 Unpaid. Applicant admits having the department store account and not paying it when she left the country. (Tr. 35) Deleted from November 2008 CBR (1.h). Zenith $55 Unpaid. Applicant has no idea about the nature of this debt (1.i). Unifund $5,224 This is the furniture debt listed in SOR ¶ 1.d (1.j). AFNI/Cingular $694 Unpaid. Balance $694 is 120 days past due. Denies having telephone service with this provider. She has never contacted the creditor about this debt. (Tr. 35) (1.k). First Premier $479 Unpaid. Applicant failed to pay this debt after she left the country. (Tr. 36) Deleted from November 2008 CBR (1.l). First Premier $244 Unpaid. Applicant failed to pay this debt after she left the country. (Tr. 36) Deleted from November 2008 CBR (1.m). First Premier $485 Unpaid. Applicant failed to pay this debt after she left the country. (Tr. 36) Deleted from November 2008 CBR (1.n). Bank First $673 Unpaid. Deleted from November 2008 CBR. Applicant has no idea about the nature of this debt. She has not attempted to contact this creditor. (Tr. 36) (1.o). GEMB/Walmart $235 Unpaid. Account purchased by another lender. Applicant failed to pay this debt after she left the country. (Tr. 36) (1.p). NCO Group FIN/medical $135 Unpaid. Applicant has no idea about the nature of this debt. She does not remember this debt. (Tr. 36) (1.q). Portfolio RC/Arrow Services LLC $161 Unpaid. Applicant has no idea about the nature of this debt (1.r). Applicant admits purchasing musical CDs. $134 Unpaid (1.s). Jefferson Cty Dept Social SE $210 Unpaid. This debt was verified in Applicant’s November 2008 CBR. It is a $210 collection account. (Ex. F) Applicant has no idea about the nature of this debt. (Tr. 37) (1.t). RSHK/CBSD $1,206 Unpaid. Applicant has no idea about the nature of this debt. (Tr. 37) (1.u).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: Applicant has 21 accounts in collection totaling over $23,000 and has made no payments on these debts; Applicant's financial problems were not caused by factors beyond her control and she has not acted responsibly under the circumstances; Applicant did not provide evidence of efforts to resolve her debts or attend financial counseling.

Why the Applicant Was Denied

• Applicant has 21 accounts in collection totaling over $23,000 and has made no payments on these debts.
• Applicant's financial problems were not caused by factors beyond her control and she has not acted responsibly under the circumstances.
• Applicant did not provide evidence of efforts to resolve her debts or attend financial counseling.

Conditions Referenced

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 issuedOct 23, 2008
• Answer filedNov 6, 2008
• Hearing heldApr 22, 2009
• Decision dateJul 7, 2009

Cite For

• Denial Based on Significant Financial Issues Under Guideline F
• Failure to Demonstrate Responsible Financial Management
• Lack of Mitigating Circumstances for Financial Obligations