Summary
A 50-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to persistent financial difficulties. The Statement of Reasons cited two specific delinquent accounts: a department store account with a $938 charge-off, for which she was an authorized user, and a medical account with a $308 balance. These issues, among others, raised disqualifying conditions related to financial irresponsibility and an unwillingness to meet financial obligations.
While mitigating conditions were considered, the applicant failed to demonstrate a good-faith effort to resolve her debts. She acknowledged her financial issues and proposed a repayment plan for approximately $19,623 in delinquent accounts, but provided no evidence of payments made or effective financial management.
Ultimately, the denial was based on the applicant's ongoing financial problems, the lack of evidence of financial counseling, and her failure to adequately address her financial issues.
Why the Applicant Was Denied
- The applicant failed to demonstrate a good-faith effort to resolve her debts.
- There was no evidence of financial counseling or effective management of her financial issues.
- The applicant's financial problems were ongoing and not adequately addressed.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence that her financial issues were due to circumstances beyond her control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's promises to pay were not substantiated by evidence of actual payments.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThere was no evidence that the applicant received financial counseling.
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 issuedNov 18, 2014
- Answer filedDec 12, 2014Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateJun 30, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues
- Failure to Demonstrate Good-faith Efforts in Debt Repayment
- Impact of Financial Irresponsibility on Security Clearance Eligibility