Summary
A 56-year-old senior technical research analyst was denied a security clearance under Guideline F (Financial Considerations) due to eight delinquent accounts totaling $33,338. The Statement of Reasons detailed several specific financial issues. These included a $2,400 credit card debt charged off in February 2000, a Discover card account with a $7,494.74 balance charged off in January 2000, and an individual revolving charge account with an $11,000 balance charged off in September 1998.
Further allegations involved a $5,400 unsecured credit union loan from March 1997, which defaulted and was charged off with a $4,276 past due balance by June 1998. An unpaid consumer credit balance of $3,794 was in collection, and a department store revolving charge account, opened in February 1997, was closed in October 1999 with a $397.89 outstanding balance by May 2000. Additionally, a joint credit card account was closed in September 1998 with a $4,792 delinquent balance, and a student loan account was over $1,000 past due by August 2000, totaling more than $10,000 with interest.
Despite the applicant having sufficient income to meet expenses as of July 2004, the clearance was denied. The judge found that the applicant did not provide sufficient documentation of progress in repaying acknowledged debts and failed to prove that disputed accounts opened in her name were not her legal responsibility. The applicant's financial difficulties were deemed ongoing, even with an increase in salary.
Why the Applicant Was Denied
- The applicant did not provide sufficient documentation of progress in repaying acknowledged debts.
- The applicant failed to prove that disputed accounts opened in her name were not her legal responsibility.
- The applicant's financial difficulties were deemed ongoing despite an increase in salary.
Conditions Referenced
- E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedDebt Incurred Largely Beyond the Person's ControlThe applicant did not provide specifics on how her circumstances impacted her ability to pay debts.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant provided insufficient documentation of payments made toward her debts.
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedFeb 19, 2004
- Answer filedApr 16, 2004Initial response on March 8, 2004 was considered incomplete.
- Hearing heldJul 8, 2004
- Decision dateMar 15, 2005
Cite For
- Failure to Document Financial Progress Under Guideline F
- Disputed Debts and Their Impact on Security Clearance Eligibility
- Ongoing Financial Difficulties Despite Increased Income