Summary
A 47-year-old female applicant with a high school education was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed seventeen delinquent debts, primarily stemming from unemployment in 2004. Specific debts included a $1,186 department store account from July 1999, a $1,750 bank account from October 1999, and a $2,677 fund account from July 2000. Other significant debts included a $1,200 department store debt from April 2002 and a $4,100 collection company account from July 2003.
While the applicant made some payments on a few debts, such as two or three payments on the bank account and fund account in August 2006, and reduced a department store debt from $1,400 to about $1,200, she did not demonstrate sufficient efforts to resolve her overall financial issues. One credit card account from February 2003, initially $1,004, was reported by the creditor to have a zero balance.
The denial was based on the applicant's failure to establish sufficient efforts to resolve her delinquent debts, including making no payments on her SOR debts in the five months prior to her hearing. Additionally, a false answer regarding delinquent debts, though not deemed deliberate, raised trustworthiness concerns. Disqualifying conditions F.19(a), F.19(c), and E.16(a) were raised, while mitigating conditions F.20(c), F.20(b), and F.20(d) were considered but ultimately insufficient.
Why the Applicant Was Denied
- The applicant did not establish sufficient efforts to resolve her delinquent debts.
- She failed to make any payments towards her SOR debts in the five months preceding her hearing.
- Her false answer regarding delinquent debts was not deemed deliberate, but it raised trustworthiness concerns.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- E.16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant received informal financial counseling from her brother.
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile unemployment contributed to her financial issues, insufficient evidence linked her current situation to a resolution of debts.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate good faith in resolving her debts.
Key Rule Quoted
“"Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information."”
Procedural Posture
- SOR issuedOct 4, 2006
- Answer filedOct 18, 2006Notarized response to SOR allegations.
- Hearing heldJan 30, 2007Applicant waived right to fifteen days written notice.
- Decision dateFeb 27, 2007
Cite For
- Insufficient Efforts to Resolve Delinquent Debts Under Guideline F
- Trustworthiness Concerns Due to Financial Issues
- Impact of Personal Conduct on Security Clearance Eligibility