Summary
A 28-year-old married CM specialist was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial problems. The Statement of Reasons detailed multiple delinquent and charged-off debts, including amounts of $254, $781, $458, $233, $2,910, $6,486, $487, and $363 owed to various finance companies, credit card accounts, and a jewelry store. Additionally, the applicant had six delinquent student loan accounts totaling approximately $9,863 and an unpaid judgment for $3,113.64 from March 2002, related to one of the credit card debts.
The decision cited Disqualifying Conditions 1 and 3, indicating a pattern of financial irresponsibility and an inability or unwillingness to satisfy debts. While Mitigating Condition 6 was applied, acknowledging some efforts to resolve the debts, these actions were deemed insufficient.
The judge determined that the applicant had not made a good-faith effort to resolve her financial issues. Despite some progress, she still owed over $20,000, with several debts remaining unpaid. Consequently, the security concerns were not mitigated, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, including multiple delinquent debts and an unpaid judgment.
- Despite some progress in addressing her debts, the applicant still owes over $20,000, with several debts remaining unpaid.
- The applicant's positive actions were deemed insufficient to constitute a good-faith effort to resolve her financial issues.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations;
- DC 3raisedInability or Unwillingness to Satisfy Debts;
- MC 6rejectedThe Individual Initiated a Good-faith Effort to Repay or Overdue Creditors or Otherwise Resolve Debts.While the applicant made some payments and entered into repayment agreements, the overall financial situation remained concerning.
Key Rule Quoted
“"It should be obvious that no one has a 'right' to a security clearance," and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedOct 20, 2003
- Answer filedNov 11, 2003
- Hearing held—Applicant requested a decision based on a written record.
- Decision dateSep 24, 2004
Cite For
- Denial of Clearance Due to Significant Unpaid Debts Under Guideline F
- Insufficient Mitigation of Financial Irresponsibility
- Evaluation of Good-faith Efforts to Resolve Debts in Security Clearance Cases