Summary
A 48-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to long-standing financial indebtedness totaling approximately $16,950. The Statement of Reasons detailed numerous past-due and charged-off debts, many dating back to 1998 and 1999.
Specific allegations included a $349.46 debt charged off in February 1999, and a $1,843.00 debt charged off in June 1999 that grew to $2,240.00 with penalties; the applicant made one payment of $68.00 on this debt after transferring it to a new Visa card in March 2004. Other significant debts included $3,920.00 charged off in April 1999, and a $5,887.00 debt to First USA Bank, which was sold to Capital One in August 2001 and reduced to $4,675.90 by March 2003 through monthly payments. An additional $4,854.00 debt was charged off in October 1999.
While some smaller debts, such as $64.00, $105.00, $102.00, and $1,439.00, were satisfied in late 2003, the judge found insufficient evidence of a good-faith effort to resolve the overall financial obligations. The denial was based on the applicant's extensive history of financial difficulties, the inadequacy of her debt resolution efforts, and a lack of credible evidence indicating future financial improvement.
Why the Applicant Was Denied
- Applicant has a long history of financial difficulties and outstanding debts totaling approximately $16,950.
- The applicant's efforts to address her debts were deemed insufficient and not indicative of a good-faith effort to resolve her financial obligations.
- There was a lack of credible evidence suggesting the applicant's financial condition would improve significantly in the near future.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe judge concluded that the applicant's failure to honor her financial obligations was not largely due to factors beyond her control.
- E2.A6.1.3.6rejectedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe judge found that the applicant's actions did not constitute a good-faith effort to resolve her debts.
Key Rule Quoted
“It is not now clearly consistent with the national interest to grant her access to classified information.”
Procedural Posture
- SOR issuedSep 30, 2003
- Answer filedOct 29, 2003Applicant elected to have her case determined on a written record.
- Hearing held—No hearing; case determined on written record.
- Decision dateJul 29, 2004
Cite For
- Denial of Security Clearance Due to Long-standing Financial Issues Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Obligations on Judgment, Reliability, and Trustworthiness.