Summary
A 32-year-old Electrical Design and Analysis Engineer with a Master's degree was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts totaling over $34,000. The Statement of Reasons detailed five specific delinquent debts, including a $12,816 debt to a credit union, a $10,273 debt to a bank, and other charged-off debts of approximately $5,168 and $4,604. An additional debt of approximately $1,330 was placed for collection.
The applicant admitted to these debts, which raised disqualifying conditions under AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c). While mitigating conditions AG ¶ 20(b) and AG ¶ 20(d) were applied, they were insufficient to overcome the concerns.
The denial was based on the applicant's multiple delinquent debts and the failure to provide sufficient evidence of ongoing payments or mitigation efforts. The applicant also did not respond to the FORM or provide adequate documentation to demonstrate financial responsibility, leading the judge to conclude that financial responsibility had not been established.
Why the Applicant Was Denied
- The applicant has multiple delinquent debts totaling over $34,000.
- The applicant failed to provide evidence of ongoing payments or mitigation efforts for the debts.
- The applicant did not respond to the FORM or provide sufficient documentation to demonstrate financial responsibility.
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)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not provide an explanation for the delinquent debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to provide evidence of ongoing payments or a reasonable plan to resolve debts.
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedJul 3, 2018
- Answer filedAug 2, 2018Applicant requested a decision on the written record.
- Hearing held—Decision made based on written record.
- Decision dateMar 6, 2019
Cite For
- Financial Responsibility Under Guideline F
- Impact of Delinquent Debts on Security Clearance Eligibility
- Requirements for Mitigating Financial Issues in Security Clearance Cases