Summary
A 65-year-old customer representative for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved debts exceeding $40,000. The Statement of Reasons (SOR) specifically cited three overdue debts: a collection account for $432, a mortgage account over 120 days past due for $7,520, and another collection account for $2,501. These issues raised disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c).
While mitigating conditions AG ¶ 20(b) and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns. The denial was based on the applicant's inability to meet financial obligations, as evidenced by the unresolved debts totaling over $40,000.
The judge determined that the applicant failed to provide evidence of a good-faith effort to repay overdue creditors or resolve her debts. Furthermore, the financial difficulties were deemed to be within the applicant's control, and she did not act responsibly under the circumstances. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling over $40,000, indicating an inability to meet financial obligations.
- The applicant did not provide evidence of a good-faith effort to repay overdue creditors or resolve her debts.
- The financial difficulties were within the applicant's control, and she failed to act responsibly under the circumstances.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial difficulties were due to her own employment changes.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not initiated a good-faith effort to repay her overdue debts.
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 issuedMar 7, 2014
- Answer filedUndatedApplicant's reply to SOR.
- Hearing heldSep 14, 2014Applicant requested decision on written record.
- Decision dateMar 9, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Application of the Whole-person Concept in Financial Consideration Cases