Summary
A 31-year-old defense contractor and military veteran was denied a security clearance under Guideline F, Financial Considerations, due to multiple delinquent debts exceeding $31,000. The Statement of Reasons (SOR) detailed several outstanding debts, including amounts of $4,390, $3,965, $4,777, $5,029, $7,455, and $5,926, all of which the applicant admitted owing. One alleged debt of $100 to a utility company was denied by the applicant, and another allegation was identified as a duplicate.
The applicant did make some payments, resolving a $1,126 debt and a $156 debt to collection companies. Additionally, the applicant made two payments of $467 each in June and July 2012 towards a $1,335 delinquent loan. While the applicant was enrolled in a debt management program, the judge determined there was insufficient evidence of responsible financial behavior or significant action to implement the plan.
The judge concluded that the applicant's financial problems were recent and ongoing, indicating an inability to meet financial obligations and raising concerns about reliability and trustworthiness. Consequently, the applicant was found not to have mitigated the financial considerations security concerns, and the security clearance was denied.
Why the applicant was denied
- The applicant had multiple delinquent debts totaling over $31,000, indicating an inability to meet financial obligations.
- The applicant did not demonstrate a track record of responsible financial behavior or significant actions to implement her debt management plan.
- The judge found that the applicant's financial problems were recent and ongoing, casting doubt on 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
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's unemployment was beyond her control, she did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceiving Counseling for the ProblemInsufficient evidence to determine that the financial problems are under control or will be resolved within a reasonable period.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicable to some debts that were paid.
- AG ¶ 20(e)appliedDispute Legitimacy of Past-due DebtApplicable to a duplicate debt.
Key rule quoted
“A security clearance adjudication is not a debt collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural posture
- SOR issuedOct 19, 2012
- Answer filedNov 22, 2012
- Hearing held—Decided on written record.
- Decision dateApr 29, 2013Remanded on 07/08/2013.
Cite for
- Evaluation of Financial Considerations Under Guideline F
- Impact of Ongoing Financial Issues on Security Clearance Eligibility
- Importance of Demonstrating Responsible Financial Behavior in Security Clearance Cases