Summary
A 37-year-old technical illustrator working for a defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from six delinquent debts totaling approximately $27,217.
The Statement of Reasons detailed these debts, which included an unpaid utility bill for $261, a medical bill for $307, a credit card account for $871, a line of credit for $7,431, and an installment contract for camera equipment for $1,347. Additionally, a $17,000 deficiency from a truck repossession contributed to the financial concerns.
Despite acknowledging the debts, the applicant failed to take meaningful action to resolve them. The decision noted that she had not sought financial counseling or initiated good-faith efforts to repay her overdue creditors, leading to concerns about her reliability and trustworthiness. Consequently, the security clearance application was denied.
Why the Applicant Was Denied
- The applicant admitted to six delinquent debts totaling about $27,217.
- She has not taken any action to resolve the debts, which raises concerns about her reliability and trustworthiness.
- The applicant has not sought or received financial counseling, nor initiated any good-faith efforts to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's debts are numerous and unresolved, raising doubts about her current reliability.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's financial issues stemmed from her husband's irresponsibility, she has not acted responsibly to address the debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant has not sought or received any financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not initiated any effort to resolve her debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant has not provided evidence to substantiate any dispute regarding the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedApr 27, 2009Applicant received SOR on May 4, 2009.
- Answer filedJul 20, 2009Applicant requested a hearing.
- Hearing heldOct 7, 2009Hearing convened as scheduled.
- Decision dateDec 29, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Lack of Financial Counseling as a Mitigating Factor in Security Clearance Decisions