Summary
A 55-year-old single woman with an electrical design background was denied a security clearance under Guideline F (Financial Considerations) due to approximately $30,000 in delinquent debts. The Statement of Reasons detailed six specific financial issues. These included two delinquent personal loans, one for an original amount of $8,000 with the full balance still outstanding, and another taken for income taxes with approximately $15,400 remaining.
Additionally, the applicant had two delinquent credit cards, each with an approximate balance of $1,930, and an $811 medical bill from 2004. While a student loan with a balance of $2,975 was no longer delinquent and was being paid, the other debts remained unresolved.
Despite the applicant citing job loss and caregiving responsibilities as causes for her financial hardship, the judge found insufficient evidence of efforts to resolve the outstanding debts since she regained full-time employment in 2007. The judge concluded that these financial delinquencies indicated an inability to manage financial obligations and posed a continuing security concern, leading to the denial of her security clearance.
Why the applicant was denied
- Applicant has six delinquent debts totaling approximately $30,000, indicating an inability to manage financial obligations.
- Applicant provided minimal evidence of efforts to resolve her outstanding debts since regaining full-time employment in 2007.
- The judge concluded that the financial delinquencies pose a continuing security concern.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial problems began due to job loss and caregiving, she failed to take significant steps to address her delinquencies.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThe applicant did not demonstrate that her financial issues were under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant provided minimal evidence of efforts to repay her debts.
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 issuedFeb 17, 2009
- Answer filedMar 18, 2009
- Hearing heldAug 17, 2009Applicant requested to leave the record open for additional exhibits.
- Decision date—
Cite for
- Failure to Mitigate Financial Considerations Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Caregiving Responsibilities on Financial Stability