Summary
A 43-year-old employee of a Federal Government contractor was denied eligibility for a public trust position due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of over $37,000 in delinquent debts, including a returned check, an overdrawn checking account, a defaulted payday loan, and various credit card and phone bills placed for collection. Additionally, three vehicles were repossessed between 2003 and 2009.
The applicant attributed her financial difficulties to low-paying jobs, periods of unemployment, and a previous separation from her children's father, who did not contribute to shared bills or child support. While she admitted to the delinquent debts and stated she was exploring bankruptcy options, she had not yet filed for protection or sought financial counseling. Her reported net monthly income of $1,820, with expenses of $1,606, left a remainder of $214, supplemented by $323 in monthly food stamps.
Despite not deliberately falsifying her application, the applicant did not disclose her debts over 180 days delinquent on her SF 85P. The decision concluded that her financial problems were significant, ongoing, and not under control, with no clear indication of when they would be resolved. This demonstrated financial irresponsibility and a lack of control over her financial situation, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant owes over $37,000 in delinquent debts, indicating financial irresponsibility.
- Applicant has not obtained financial counseling or made payments on her debts, showing a lack of control over her financial situation.
- Financial problems are ongoing and significant, raising doubts about her reliability and trustworthiness.
Conditions Referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.craisedA History of Not Meeting Financial Obligations
- F.20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant's unemployment and relationship issues contributed to her financial problems.
- F.20.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20.crejectedThe 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 Control
- F.20.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedOct 18, 2010
- Answer filedNov 12, 2010Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateApr 15, 2011
Cite For
- Denial of Eligibility Due to Significant Unresolved Financial Issues Under Guideline F
- Consideration of Personal Conduct in the Context of Financial Irresponsibility
- Impact of Ongoing Financial Problems on Trustworthiness Assessments Under Guideline F