Summary
A 33-year-old analyst for a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns stemming from ten delinquent debts totaling approximately $31,899. These debts included several medical bills, a jewelry account, a credit card, a truck repossession, and a past-due home mortgage.
While the applicant resolved some medical debts and a credit card balance, and was making payments on a jewelry account, other significant issues remained. A truck repossession debt was being addressed through wage garnishment. Critically, the applicant's home mortgage, past due by $24,912, had been modified, but she failed to make the first payment under the new terms.
The denial was primarily based on the applicant's failure to present a viable plan to resolve the delinquent home mortgage. The adjudicator noted that her financial problems were recent and numerous, indicating poor judgment and a lack of self-control regarding financial obligations. Additionally, the applicant did not seek financial counseling, and her overall financial situation was not deemed to be under control.
Why the Applicant Was Denied
- The applicant failed to demonstrate a viable plan to resolve her delinquent home mortgage, which was a significant factor in the denial.
- The applicant's financial problems were recent and numerous, indicating a lack of self-control and poor judgment regarding financial obligations.
- The applicant did not seek financial counseling, and her financial situation was not under control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe applicant's spouse's loss of income was beyond her control, and she acted responsibly by settling medical debts and negotiating payment agreements.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made efforts to resolve some debts, but did not have a viable plan for her mortgage.
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's recent and numerous debts do not indicate that the behavior is unlikely to recur.
- AG ¶ 20(c)rejectedCounseling for Financial ProblemsThe applicant has not sought or received financial counseling.
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 24, 2009
- Answer filedMay 20, 2009
- Hearing heldJul 28, 2009
- Decision dateAug 24, 2009
Cite For
- Denial Based on Recent and Numerous Financial Delinquencies Under Guideline F
- Importance of Demonstrating a Viable Plan for Debt Resolution
- Consideration of Financial Counseling in Security Clearance Determinations