Summary
A 37-year-old applicant was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. These issues arose from a costly divorce and subsequent financial mismanagement, resulting in numerous unpaid debts.
The Statement of Reasons detailed several specific debts, including an outstanding leased car payment, a $4,720 cell phone bill, and a $1,368 credit card debt. Other debts included a $416 obligation whose basis the applicant did not know, a $3,818 debt for a computer purchased in May 2005, a $150 medical debt, and a $4,489 loan from June 2004 for attorney's fees. Disqualifying conditions F.19(a) and F.19(c) were raised.
Despite being employed, the applicant had numerous delinquent and unresolved debts. The denial was based on her failure to provide a current, credible plan to resolve these debts and her lack of follow-through in disputing them with creditors. Mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e) were considered but did not overcome the concerns.
Why the Applicant Was Denied
- Applicant has numerous delinquent debts that are unpaid or unresolved.
- Applicant failed to provide a current credible plan for how she intends to resolve her debts.
- Applicant did not follow through on disputing debts with creditors.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant provided documents to support her attempt to dispute the debt in SOR ¶ 1.g.
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's debts are numerous and ongoing.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant has not acted responsibly in maintaining her finances since her divorce.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThere is no evidence Applicant has recently received financial counseling.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not provided evidence of a good-faith effort to resolve her debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedSep 14, 2010
- Answer filedOct 12, 2010
- Hearing heldFeb 7, 2011
- Decision date—
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Providing a Credible Plan for Debt Resolution
- Impact of Unresolved Debts on Security Clearance Eligibility