Summary
A 48-year-old shipper and receiver was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved debts totaling $41,490. The Statement of Reasons detailed several specific allegations, including a bank debt of $2,822, for which the last payment was in July 2008, and a payment plan was scheduled to begin in September 2011. Another bank debt of $645 was placed for collection, with the applicant attempting to locate the current holder of the debt. Additionally, a $5,710 bank debt, last paid in July 2008, was disputed by the applicant, who was an authorized user on her father's account and sought its removal from her credit report.
The denial was based on the applicant's 19 debts, totaling $41,490, and the insufficient evidence provided regarding payments or resolution efforts. The applicant submitted only two checks, totaling $45, as proof of payment, which was deemed inadequate.
Ultimately, the applicant failed to demonstrate a good-faith effort to repay her debts or maintain contact with her creditors, leading to the conclusion that her financial situation posed an unacceptable security risk.
Why the Applicant Was Denied
- The applicant had 19 debts totaling $41,490, with insufficient evidence of payments or resolution efforts.
- She provided only two checks totaling $45 as evidence of payment, which was inadequate.
- The applicant did not demonstrate a good-faith effort to repay her debts or maintain contact with creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsInsufficient evidence of good-faith efforts to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtNo documented proof of disputes or actions to resolve issues.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 5, 2011
- Answer filedNov 1, 2011Requested decision without a hearing.
- Hearing held—Decision made without a hearing.
- Decision dateJan 20, 2012
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Criteria for Evaluating Financial Considerations in Security Clearance Cases