Summary
A 35-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved debts. The Statement of Reasons detailed numerous outstanding financial obligations. These included debts to Creditor #1 for $655, Creditor #2 for $1,260, Creditor #3 for $16,196 (alleged as $4,093), Creditor #4 for $519, Creditor #5 for $550, Creditor #6 for $797, and Creditor #7 for $529. For several of these, the applicant stated in January 2002 an intent to pay "as soon as I can," but the debts remained unsatisfied.
Further outstanding debts included two phone bills to Creditor #8 for $314 and $1,666, and another phone bill for $225 (alleged as $177.59). A debt to Creditor #9 for $447 remained unsatisfied, as did a car loan to Creditor #10 for a vehicle returned due to unaffordability. Additionally, a debt to Creditor #12, a fitness club, for $1,200 was unresolved. The applicant also admitted a $2,873 lien for federal and Maryland income taxes, for which she was making monthly payments of $150 and $100, respectively.
While the applicant did pay a $437 debt to a community college in 2003, this was the only resolved debt. The denial was based on a history of financial problems and an inability or unwillingness to satisfy the majority of her debts. The applicant did not provide documentation of efforts to manage her finances or seek financial counseling.
Why the Applicant Was Denied
- The applicant has a history of financial problems and has shown an inability or unwillingness to satisfy all of her debts.
- Only one debt was resolved, and the applicant did not document efforts to manage her finances or seek counseling for her financial issues.
Conditions Referenced
- 1raisedA History of Not Meeting Financial Obligations
- 3raisedInability or Unwillingness to Satisfy Debts
- 6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made payments on two debts but failed to resolve the majority.
Key Rule Quoted
“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”
Procedural Posture
- SOR issuedApr 30, 2003
- Answer filedJun 10, 2003Notarized response from applicant.
- Hearing held—Applicant requested a decision without a hearing.
- Decision dateApr 27, 2004
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Lack of Financial Counseling or Management Efforts as a Mitigating Factor