Summary
The applicant, a 33-year-old electronics technician and former U.S. Air Force Staff Sergeant, faced financial difficulties after separating from military service, resulting in approximately $16,000 in delinquent debt. Despite entering a repayment plan, she was unable to maintain payments due to personal circumstances, including a difficult pregnancy. Although the judge found that her failure to disclose her debts on her security clearance application was not deliberate, the applicant failed to mitigate the financial concerns, leading to a denial of her security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $4,122 charged-off account for a line of credit (1.a). $7,559 collection account for a credit card (1.b). $2,075 collection account for a credit card (1.c). $2,082 charged off credit card account (1.d). $339 charged off account for credit card used to buy a computer (1.e). $31 unpaid telephone bill (1.f). three medical-related collection accounts totaling $400 (1.g).
The judge denied the clearance. The government raised disqualifying conditions FC DC E2.A6.1.2.1, FC DC E2.A6.1.2.3. The judge applied mitigating conditions FC MC E2.A6.1.3.3, FC MC E2.A6.1.3.1, FC MC E2.A6.1.3.2, FC MC E2.A6.1.3.4, FC MC E2.A6.1.3.6. The decision turned on the following: The applicant incurred approximately $16,000 in delinquent debt after separating from military service; She has not contacted any creditors to resolve her debts since mid-2002; The majority of her delinquent debt remains unresolved, indicating a lack of good faith effort to address the financial issues.
Why the Applicant Was Denied
- The applicant incurred approximately $16,000 in delinquent debt after separating from military service.
- She has not contacted any creditors to resolve her debts since mid-2002.
- The majority of her delinquent debt remains unresolved, indicating a lack of good faith effort to address the financial issues.
Conditions Referenced
- FC DC E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- FC DC E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- FC MC E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant faced financial difficulties due to a difficult pregnancy and loss of income.
- FC MC E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- FC MC E2.A6.1.3.2rejectedIt Was an Isolated Incident
- FC MC E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- FC MC E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not demonstrated a good-faith effort to resolve her debts.
Key Rule Quoted
“"The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance."”
Procedural Posture
- SOR issuedAug 8, 2005
- Answer filedAug 27, 2005
- Hearing heldMar 29, 2006
- Decision dateMay 17, 2006
Cite For
- Financial Difficulties Leading to Delinquent Debt Under Guideline F
- Lack of Good Faith Effort to Resolve Debts as a Disqualifying Factor
- Non-deliberate Omission of Financial Issues on Security Clearance Application Under Guideline E.