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Summary

The applicant, a 32-year-old defense contractor, sought a security clearance under Guideline F due to significant financial difficulties, including over $28,000 in past due debts. The judge found that the applicant's financial issues were recent and unresolved, leading to a denial of the security clearance based on concerns about reliability and trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant admits that she is indebted to a creditor in the amount of $1,021. The Applicant has made no recent payments on this debt, and there is no evidence that she is going to make payments on this debt (1.a). The Applicant admits that she is indebted to a creditor for a delinquent student loan in the amount of $14,000. She states in her Answer to the SOR, “This should not be under collection any long, as the debt is being paid at a rate of $409.00 per month.” The most recent credit report in the record, dated June 5, 2009, indicates that the debt is, “Paid or being paid by garnishment.” (1.b). The Applicant admits that she is indebted to a creditor for a delinquent student loan in the amount of $10,000. The Applicant states that this debt is also being paid at the rate of $409 a month. The most recent credit report in the record, dated June 5, 2009, indicates that the debt is, “paid or being paid by garnishment.” (1.c). The Applicant admits that she is indebted to a credit card company in the amount of $381. The Applicant has made no recent payments on this debt, and there is no evidence that she is going to make payments on this debt (1.d). The Applicant admits that she is indebted to a second credit card company in the amount of approximately $2,000. The Applicant stated in October 2008 that she was making $100 payments on this debt. She submitted no documentary evidence supporting her statement, or showing her current balance (1.e). The Applicant admits that she is indebted to a creditor for a delinquent student loan in the amount of $362. She states in her Answer to the SOR, “All . . . obligations are currently being paid at a total rate of $130.00 per month.” The Applicant submitted copies of pages from a payment book of this creditor. The payment book indicates that the Applicant’s monthly payment for two student loans was $127.71 as of April 2009. However, the Applicant submitted no information as to how many payments have been made, or showing her current balance (1.f). The Applicant admits that she is indebted to a creditor for a delinquent student loan in the amount of $253. She states in her Answer to the SOR, “All . . . obligations are currently being paid at a total rate of $130.00 per month.” The Applicant submitted copies of pages from a payment book of this creditor. The payment book indicates that the Applicant’s monthly payment for two student loans was $127.71 as of April 2009. However, the Applicant submitted no information as to how many payments have been made, or showing her current balance (1.g). The Applicant admits that she is indebted to a creditor for a delinquent student loan in the amount of $350. She states in her Answer to the SOR, “All . . . obligations are currently being paid at a total rate of $130.00 per month.” The Applicant submitted copies of pages from a payment book of this creditor. The payment book indicates that the Applicant’s monthly payment for two student loans was $127.71 as of April 2009. However, the Applicant submitted no information as to how many payments have been made, or showing her current balance (1.h). The Applicant admits that she is indebted to a collection agency in the amount of $114. The Applicant has made no recent payments on this debt, and there is no evidence that she is going to make payments on this debt (1.i). The Applicant admits that she is indebted to a telephone company in the amount of $264. The Applicant has made no recent payments on this debt, and there is no evidence that she is going to make payments on this debt (1.j).

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), AG ¶ 20(d). The decision turned on the following: The applicant admitted to over $28,000 in past due debts, indicating an inability to satisfy financial obligations; The applicant failed to demonstrate a consistent good-faith effort to pay off debts or provide evidence of improved financial status; The applicant's financial difficulties were recent and not under control, raising concerns about potential pressure or coercion.

Why the Applicant Was Denied

• The applicant admitted to over $28,000 in past due debts, indicating an inability to satisfy financial obligations.
• The applicant failed to demonstrate a consistent good-faith effort to pay off debts or provide evidence of improved financial status.
• The applicant's financial difficulties were recent and not under control, raising concerns about potential pressure or coercion.

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 issuedJun 16, 2009
• Answer filedJul 15, 2009Applicant requested decision without a hearing.
• Hearing held—Decision made based on written record.
• Decision dateOct 28, 2009

Cite For

• Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
• Importance of Demonstrating Good-faith Efforts to Resolve Financial Obligations
• Recent Financial Difficulties Impacting Security Clearance Eligibility