Summary
A 53-year-old configuration and product data manager, employed for 12 years at a defense contractor, was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant financial issues, specifically 14 accounts totaling approximately $27,000 in debt.
Among the specific allegations were a $6,513 debt from a vacation plan purchase, a $5,812 debt with $200 monthly payments related to a repossession, an outstanding balance of $10,000, and a $1,309 doctor’s account placed for collection. Disqualifying conditions under Guideline F were raised, while mitigating conditions were also considered.
Ultimately, the clearance was denied because the applicant had 14 past due, written off, or collected accounts totaling around $27,000. The applicant failed to demonstrate a meaningful track record of addressing these obligations, with only one debt repaid. Furthermore, her financial problems were not attributed to circumstances beyond her control, and she did not provide evidence of effective financial management.
Why the Applicant Was Denied
- The applicant has 14 accounts that are past due, written off, or placed for collection, totaling approximately $27,000.
- The applicant failed to demonstrate a meaningful track record of addressing her financial obligations, with only one debt being repaid.
- The applicant's financial problems were not caused by circumstances beyond her control, and she has not shown evidence of effective financial management.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant did not act aggressively to resolve her delinquent debts.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's financial issues stemmed from personal choices, not uncontrollable circumstances.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant has not shown that her financial problems are being resolved or are under control.
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant is making payments on one debt but lacks a comprehensive repayment plan.
- AG ¶ 20(e)notedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedMay 20, 2009
- Answer filedJun 10, 2009
- Hearing heldSep 30, 2009
- Decision dateMar 24, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating a Meaningful Track Record in Managing Debts
- Consideration of the Whole Person Concept in Security Clearance Evaluations