Summary
A 59-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons (SOR) detailed several delinquent debts, some dating back to 2011. These included a $15,464 debt for a repossessed vehicle, a $2,140 debt believed to be past the statute of limitations, and other outstanding amounts ranging from $57 to $1,364.
The applicant provided various responses to the allegations, such as indicating a dispute with one merchant, working with a credit counselor on another debt, and attempting to contact a creditor for a third. While the applicant stated that a $160 medical debt had been paid, and claimed one debt was a duplicate of another, there was insufficient evidence of widespread debt resolution or ongoing payments for the majority of the alleged financial problems.
Ultimately, the applicant failed to demonstrate sufficient financial stability or resolution of the numerous delinquent debts. Despite some admissions and evidence of financial resources, the ongoing nature of the financial problems and the lack of adequate mitigation led to the conclusion that granting clearance was inconsistent with national security interests, resulting in a denial.
Why the Applicant Was Denied
- The applicant had numerous unresolved delinquent debts dating back to 2011.
- The applicant failed to provide evidence of making payments or resolving debts alleged in the SOR.
- The applicant's financial problems were ongoing and not adequately mitigated.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant attributed financial problems to periods of unemployment.
- AG ¶ 20(c)appliedReceived Financial CounselingThe applicant received financial counseling but did not show evidence of control over financial problems.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to provide evidence of good-faith efforts to resolve debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedApr 26, 2018
- Answer filedMay 22, 2018Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateMar 18, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Debt Resolution for Security Clearance Eligibility
- Impact of Ongoing Financial Problems on National Security Considerations.