Summary
A 44-year-old data administrator and U.S. Army veteran was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant financial issues, including four unpaid judgments and numerous collection accounts, which collectively totaled approximately $40,000.
The Statement of Reasons detailed that the applicant owed over $17,000 on four unpaid judgments and more than $27,000 in delinquent consumer debt across multiple allegations. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
Despite the applicant acknowledging some debts and asserting intentions to pay, the judge found insufficient evidence to mitigate the financial concerns. The denial was based on the applicant's over $40,000 in delinquent debts, including the unpaid judgments, and a lack of documentation to support claims of debt repayment or financial counseling. The recent and multiple nature of the financial difficulties raised concerns about the applicant's reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant has over $40,000 in delinquent debts, including four unpaid judgments totaling over $17,000.
- Applicant provided no documentation to support claims of debt repayment or financial counseling.
- Applicant's financial difficulties are recent and multiple, raising concerns about reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant did not act responsibly to address her debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsSome payments were made, but insufficient to mitigate concerns.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtNo documentation was provided to support the dispute of the debt.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage their finances to meet their financial obligations.”
Procedural Posture
- SOR issuedOct 10, 2014
- Answer filedFeb 3, 2015Applicant elected to proceed without a hearing.
- Hearing held—No hearing; decision made on the written record.
- Decision dateAug 13, 2015
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Provide Evidence of Debt Repayment or Financial Counseling
- Consideration of the Whole-person Concept in Financial Security Clearance Cases