Summary
A 41-year-old logistics specialist was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues totaling approximately $11,000. The Statement of Reasons (SOR) detailed fourteen allegations of delinquent debts. These included a $5,432 debt from a 2002 automobile repossession, a gym membership debt exceeding $2,000, and various unpaid utility, phone, and medical bills. Other debts included a $256 satellite dish debt settled for $200, and a $137 medical debt that was paid in full. The applicant admitted to eleven of the fourteen allegations.
Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised. While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's admission to most of the allegations and the fact that only two debts, totaling $357, were resolved. The judge found the applicant's efforts to address his financial obligations insufficient, noting that communication with creditors was tardy and inadequate. This raised concerns about the applicant's reliability and judgment in financial matters, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to eleven of fourteen allegations related to delinquent debts totaling approximately $11,000.
- Only two of the debts were resolved, totaling $357, indicating insufficient efforts to address financial obligations.
- The applicant's communication with creditors was deemed tardy and inadequate, failing to demonstrate responsible action.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurMost financial problems arose in the past ten years, but the applicant has not made significant progress in resolving debts.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some debts arose from circumstances beyond the applicant's control, his actions since becoming aware of the debts were not responsible.
- AG ¶ 20(c)rejectedReceived Counseling and the Problem Is Under ControlThe applicant received some counseling but dropped it before resolving the debt.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a significant effort to resolve a majority of his 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 issuedJan 10, 2008
- Answer filedJan 31, 2008
- Hearing heldMar 14, 2008
- Decision dateMay 19, 2008
Cite For
- Insufficient Efforts to Mitigate Financial Concerns Under Guideline F
- Importance of Timely Communication with Creditors
- Impact of Unresolved Debts on Security Clearance Eligibility