Summary
A 48-year-old integration technician was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial issues. The Statement of Reasons detailed 18 allegations, including nine medical collection debts, two general collection accounts (one from June 2010 and one for a school debt), and a wireless company collection from September 2007.
Further allegations included a credit card charged off in December 2010, a loan charged off in June 2013, an automobile repossession, a lending company charged-off account, and two additional accounts charged off in December 2008. These issues collectively represented 17 charged-off or collection accounts totaling approximately $14,500.
The denial was based on the applicant's long-standing financial problems, dating back to at least 2007. Although some payments were made, they were deemed insufficient in number and magnitude to mitigate the financial concerns. The applicant also failed to present a credible plan to address the delinquent debts, with minimal payments observed on most accounts. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered but ultimately did not lead to a favorable outcome.
Why the Applicant Was Denied
- The applicant has a history of financial problems dating back to at least 2007, with 17 charged-off or collection accounts totaling approximately $14,500.
- Payments made by the applicant were deemed insufficient in number and magnitude to resolve the financial concerns.
- The applicant failed to demonstrate a credible plan to address her delinquent debts, with minimal payments made on most accounts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe financial problems started in 2007 and remain unpaid.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's mother's illness and custody of children were factors, they did not sufficiently mitigate the ongoing financial issues.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemNo evidence of financial counseling was presented.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's efforts to address debts were minimal and not timely.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate any disputes.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances to meet her financial obligations.”
Procedural Posture
- SOR issuedJul 23, 2013
- Answer filedAug 19, 2013
- Hearing held—Decided without a hearing
- Decision dateFeb 7, 2014
Cite For
- Insufficient Payments on Debts Under Guideline F
- Financial Irresponsibility as a Disqualifying Condition
- Failure to Demonstrate a Credible Plan for Debt Resolution