Summary
A 39-year-old former office administrator for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial difficulties. The applicant's financial history included a Chapter 7 bankruptcy discharge in 2002 and multiple delinquent accounts totaling approximately $71,028.
Specific allegations included an August 2010 bank overdraft of $616, a November 2009 telephone account of $327, a September 2010 mobile phone account of $1,392, and a November 2009 utility account of $997. Other debts included a February 2008 homeowners association payment of $480, two credit card accounts with delinquent balances of $530, and two other credit card accounts with delinquent balances of $683. A car loan with a high credit of $18,865 had a delinquent balance of $10,079 and was charged off in September 2010.
Additionally, the applicant had a home mortgage loan with an approximate balance of $155,000 that was over 120 days past due by $37,119, and another home mortgage loan with a high credit of $36,551 that was over 180 days past due by $46,515. An automobile loan opened in 2002 with a high credit of $12,689 became delinquent. Two automobile rental accounts, for $221 and $449, were placed for collection in August 2010 and September 2009, respectively, and a bank credit card account of $545 was placed for collection in August 2010. The judge found that despite efforts to manage debts and obtain financial counseling, the applicant failed to demonstrate sufficient mitigation of these financial concerns, leading to the denial.
Why the Applicant Was Denied
- The applicant had a history of financial difficulties, including a Chapter 7 bankruptcy discharge in 2002 and multiple delinquent accounts totaling approximately $71,028.
- The applicant failed to provide sufficient documentation to support claims of debt resolution and repayment plans.
- The applicant's financial issues were ongoing and not adequately addressed, raising concerns about her reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
Key Rule Quoted
“"No one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedAug 4, 2011
- Answer filedAug 11, 2011Applicant elected to proceed without a hearing.
- Hearing held—Decision made on the written record.
- Decision dateDec 6, 2011
Cite For
- Denial of Security Clearance Due to Financial Considerations Under Guideline F
- Importance of Providing Documentation to Support Claims of Debt Resolution
- Ongoing Financial Difficulties as a Basis for Disqualification