Summary
A 38-year-old married mother of three was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed several significant debts. These included a $23,787 personal loan from January 2008, which resulted in a judgment against her in July 2011. She also had a $2,012 charged-off credit card debt and a $41,677 delinquent credit card debt from an account opened in the 1990s, which became delinquent in 2012. Additionally, she owed a $2,151 charged-off credit card debt from an account opened in 2009 that became delinquent in 2012. Finally, she became past due on her home mortgage in January 2010 and sold the property in a short sale in the summer of 2012.
The denial was based on several factors. The applicant had unresolved debts totaling over $69,000, including the judgment for the personal loan. She failed to provide a personal financial statement to demonstrate her ability to manage these debts. Furthermore, she did not inform her creditors of her financial difficulties for three years, which was seen as a lack of responsibility.
While several mitigating conditions were considered, the applicant did not provide sufficient evidence of a consistent repayment plan or overall financial stability. Consequently, her application for a security clearance was denied.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling over $69,000, including a judgment against her for a personal loan.
- She did not provide a personal financial statement to demonstrate her ability to manage her debts.
- Applicant failed to inform her creditors of her financial difficulties for three years, indicating a lack of responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant provided documentation of recent payment plans for some debts.
- AG ¶ 20(a)rejectedThe Financial Problem Occurred so Long Ago or Was Infrequent
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJan 9, 2013
- Answer filedFeb 1, 2013
- Hearing held—Applicant requested decision on the record.
- Decision dateApr 29, 2013
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Providing a Personal Financial Statement in Financial Consideration Cases
- Failure to Communicate with Creditors as a Factor in Financial Responsibility Assessments