Summary
A 31-year-old claims associate for a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant had a history of delinquent debts, with six accounts totaling approximately $39,961. These included a $6,617 account charged off in June 2003, an $8,852 credit account in collection in September 2003, a $3,222 collection account and a $12,813 collection account both from October 2003, a $7,239 account charged off in February 2004, and a $662 account charged off in April 2004. An additional $556 account was closed in April 2004.
The denial was based on the applicant's failure to demonstrate good faith efforts to resolve these long-standing debts. Specifically, the applicant had not made any payments to creditors in three years and did not seek financial counseling or contact creditors to address the outstanding obligations.
While the applicant's husband's unstable employment was considered, it was not deemed sufficient to mitigate the financial concerns. The decision highlighted the applicant's consistent failure to meet financial responsibilities, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, with six delinquent accounts totaling approximately $39,961 since 2003.
- The applicant did not make any payments to creditors in three years and failed to seek financial counseling or contact creditors to resolve debts.
- The applicant's husband's unstable employment was not sufficient to mitigate the financial concerns.
Conditions Referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's husband's unstable employment was not sufficient to mitigate the concerns.
- E2.A6.1.3.6rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant did not provide proof of any payments or a structured plan for the future.
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedJul 17, 2006
- Answer filedAug 7, 2006Applicant elected to have her case decided on the record.
- Hearing held—No hearing was held.
- Decision dateNov 30, 2006
Cite For
- Denial of Security Clearance Due to Financial Considerations Under Guideline F
- Failure to Demonstrate Good Faith Efforts to Resolve Delinquent Debts
- Impact of Financial Irresponsibility on Trustworthiness Determinations