Summary
A 29-year-old defense contractor employee was denied eligibility for a public trust position due to significant financial concerns under Guideline F. The applicant faced 32 delinquent debts totaling over $36,000. These included two judgments for $3,621 and $3,090, a $3,520 judgment to the state for overpaid benefits, and two car loans totaling $15,744 and $2,992.
Additional debts included $738, $133, $164, and $251 for telephone services; $1,055 for television services; $150 in medical debt, along with other unspecified and disputed medical debts; $446 for bank overdraft fees; $55 for library fees; and $82 for book club fees. The applicant also owed $1,641 and $1,146 to a real estate company, and $3,513 to a collection company on behalf of a real estate company.
Despite some evidence of past debt resolution, the applicant's ongoing financial difficulties and lack of a clear plan to address them led to the denial. The decision cited a history of financial problems without a clear resolution plan, ongoing difficulties raising trustworthiness concerns, and a failure to demonstrate a good-faith effort to resolve all delinquent debts.
Why the applicant was denied
- The applicant has a history of financial problems without a clear plan to address them.
- The applicant's ongoing financial difficulties raise questions about her reliability and trustworthiness.
- The applicant did not demonstrate a good-faith effort to resolve all her delinquent debts.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial issues were exacerbated by her separation and periods of unemployment.
- AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant received financial counseling from her church.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant paid two judgments and some small debts.
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant disputed several debts but did not provide sufficient proof.
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 issuedMar 7, 2012
- Answer filednullUndated answer submitted.
- Hearing heldSep 21, 2012Hearing conducted as scheduled.
- Decision datenullDecision issued after hearing.
Cite for
- Denial of Eligibility Due to Unresolved Financial Issues Under Guideline F
- Impact of Ongoing Financial Difficulties on Trustworthiness Determinations
- Consideration of Mitigating Conditions in Financial Cases