Summary
The applicant, a 28-year-old receptionist with a history of financial difficulties, faced security concerns under Guideline F due to approximately $85,184 in delinquent debts. Despite her claims of recent attempts to consolidate her debts, the judge found insufficient evidence of financial stability or a reliable repayment plan, leading to the denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is responsible for a $586 judgment filed against her in May 2010 (1.a). Applicant is responsible for a $214 medical debt (1.b). Applicant is responsible for a $131 medical debt (1.c). Applicant is responsible for a $215 medical debt (1.d). Applicant is responsible for a $174 medical debt (1.e). Applicant is responsible for a $90 medical debt (1.f). Applicant is responsible for a $130 medical debt (1.g). Applicant is responsible for an unpaid collection account of $14,510 (1.h). Applicant owes a creditor $237 on a collection account (1.i). Applicant owes a creditor a debt of $4,808, which is in charged-off status (1.j). Applicant owes $61,974 on a delinquent mortgage account with a total balance of $103,000 (1.k). Applicant owes a creditor $676 on a delinquent account placed for collection (1.l). Applicant owes a creditor $1,382 on an account placed for collection (1.m). Applicant owes a creditor a $57 debt, which had been placed for collection (1.n).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(a), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant failed to provide documentation supporting her claims regarding disputed debts; The applicant's financial delinquencies were ongoing and not resolved, raising concerns about her reliability and judgment; The applicant did not demonstrate a consistent history of timely debt repayment or seek financial counseling.
Why the Applicant Was Denied
- The applicant failed to provide documentation supporting her claims regarding disputed debts.
- The applicant's financial delinquencies were ongoing and not resolved, raising concerns about her reliability and judgment.
- The applicant did not demonstrate a consistent history of timely debt repayment or seek financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial difficulties stemmed from her former partner's irresponsibility and her own health issues.
- AG ¶ 20(a)rejectedFinancial Problems Occurred so Long Ago or Infrequently That They Are Unlikely to Recur
- AG ¶ 20(c)rejectedEvidence of Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedReasonable 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 issuedApr 11, 2013
- Answer filedJun 3, 2013
- Hearing heldAug 7, 2013Record left open until 08/23/2013 for additional documentation.
- Decision dateSep 19, 2013
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Financial Instability on Security Clearance Eligibility
- Consideration of Mitigating Conditions Under Guideline F