Summary
A 65-year-old applicant with a technical degree was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial delinquencies totaling approximately $60,000. These debts primarily arose during periods of unemployment. The Statement of Reasons detailed eight specific allegations, including a $31,000 second mortgage, a $2,182 department store debt for a refrigerator from March 2003, a $2,131 credit card debt for living expenses from October 2001 to January 2003, a $15,000 car lease debt, a $2,415 department store debt for a computer from September 2001, and a $6,890 credit card debt incurred while managing other bills.
While two smaller debts—a $41 medical debt and a $487 cellular telephone debt—were paid in July and August 2009, respectively, the majority of the significant debts remained unresolved. The judge applied Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c), and considered Mitigating Conditions AG ¶ 20(d), AG ¶ 20(b), and AG ¶ 20(c).
Ultimately, the clearance was denied because the applicant's history of financial delinquencies remained unresolved, raising concerns about reliability and trustworthiness. The judge found that despite some payments, the applicant had not demonstrated a sufficient track record of debt management, and her ongoing financial issues indicated a lack of control over her obligations.
Why the Applicant Was Denied
- The applicant has a history of financial delinquencies that remain unresolved, raising concerns about her reliability and trustworthiness.
- Despite some payments made, the majority of the debts are still outstanding, and the applicant has not demonstrated a sufficient track record of debt management.
- The applicant's financial issues were ongoing and not isolated, indicating a lack of control over her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant demonstrated a good-faith effort by paying two debts.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant experienced unemployment, the judge found insufficient evidence that her financial problems were beyond her control.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant sought credit counseling after the hearing, but had not established control over her debts at the time of the decision.
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 17, 2009
- Answer filedJul 15, 2009
- Hearing heldOct 15, 2009
- Decision dateJan 15, 2010
Cite For
- Denial Based on Unresolved Financial Delinquencies Under Guideline F
- Impact of Financial Management on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases