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Summary

The applicant, a 50-year-old executive secretary employed by a defense contractor, faced security clearance denial under Guideline F due to significant financial issues. The judge found that the applicant's financial irresponsibility and lack of effort to resolve her debts demonstrated poor judgment and untrustworthiness, leading to the conclusion that granting a security clearance was not consistent with national interest.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant admits her indebtedness in the amount of approximately $2,864.00 for the balance owed from a vehicle repossession since December 30, 1991 (1.a). The Applicant admits her indebtedness in the amount of approximately $2,870.00 for the balance owed from a vehicle repossession since December 30,1991 (1.b). The Applicant admits her indebtedness in the amount of approximately $2,224.00 for an unpaid credit card debt since January 31, 1992 (1.c). The Applicant admits her indebtedness in the amount of approximately $7,037.00 for an unpaid credit card debt since February 4, 1992 (1.d). The Applicant admits her indebtedness in the amount of approximately $734.00 for an unpaid credit card debt since February 1992 (1.e). The Applicant admits her indebtedness in the amount of approximately $7,654.00 for an unpaid credit card debt since 1992 (1.f). The Applicant admits her indebtedness in the amount of approximately $5,334.00 for an unpaid credit card debt since 1992 (1.g).

The judge denied the clearance. The government raised disqualifying conditions F.1, F.3. The decision turned on the following: The applicant has a history of not meeting financial obligations; The applicant has expressed no intention to pay her outstanding debts; The applicant has not initiated any good faith effort to resolve her financial issues.

Why the applicant was denied

• The applicant has a history of not meeting financial obligations.
• The applicant has expressed no intention to pay her outstanding debts.
• The applicant has not initiated any good faith effort to resolve her financial issues.

Conditions referenced

Key rule quoted

“The Government is therefore appropriately concerned when available information indicates that an Applicant for clearance may be experiencing excessive indebtedness caused by financial irresponsibility, which demonstrates poor judgment or unreliability.”

Procedural posture

• SOR issuedJan 5, 1998
• Answer filedJan 15, 1998Applicant elected to proceed without a hearing.
• Hearing held—Written record only.
• Decision dateApr 3, 1998

Cite for

• Financial Irresponsibility as a Basis for Clearance Denial
• Lack of Good Faith Effort to Resolve Debts
• Poor Judgment and Untrustworthiness Related to Financial Issues