Summary
The applicant, a 27-year-old defense contractor employee with a bachelor's degree in economics, faced security concerns under Guideline F due to significant delinquent debts totaling approximately $63,336. Despite acknowledging her financial issues, she failed to demonstrate responsible actions to resolve her debts or seek financial counseling, leading to the denial of her security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a delinquent telephone bill for $463 (1.a). a medical bill for $335 (1.b). a delinquent credit card account for $7,324 (1.c). $53,568 in student loans (1.d). a medical bill for $431 (1.e). a medical bill for $320 (1.f). a medical bill for $185 (1.g). an unsatisfied $710 judgment for unpaid rent (1.h).
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), AG ¶ 20(e). The decision turned on the following: The applicant admitted to significant delinquent debts totaling approximately $63,336, including student loans and other financial obligations; She failed to provide documentation to support her claims of having paid off debts, particularly a judgment for unpaid rent; The applicant did not seek financial counseling or make substantial efforts to resolve her debts, indicating a lack of responsibility.
Why the Applicant Was Denied
- The applicant admitted to significant delinquent debts totaling approximately $63,336, including student loans and other financial obligations.
- She failed to provide documentation to support her claims of having paid off debts, particularly a judgment for unpaid rent.
- The applicant did not seek financial counseling or make substantial efforts to resolve her debts, indicating a lack of responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's debts are ongoing and numerous.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some circumstances were beyond her control, she did not act responsibly to resolve her debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving CounselingThe applicant has not sought financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant made virtually no effort to resolve her delinquent debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not dispute any debts except for one without supporting documentation.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJun 17, 2010
- Answer filedJul 6, 2010
- Hearing heldSep 22, 2010
- Decision dateDec 15, 2010
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Lack of Evidence of Responsible Financial Management
- Failure to Seek Financial Counseling as a Mitigating Factor