Summary
The applicant, a 28-year-old research analyst and former U.S. Navy service member, faced security concerns under Guideline F (Financial Considerations) due to multiple delinquent debts. Despite resolving some debts shortly before the hearing, the judge found insufficient evidence of financial responsibility and a lack of proactive measures to address the debts, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: credit-card debt charged off for $1,367 (1.a). student loans past due for $795, with a balance of $8,234 (1.b). student loans past due for $337, with a balance of $3,747 (1.c). collection account for $1,267 (1.d). credit-card debt charged off for $4,667 (1.e). collection account for $669 (1.f). home-improvement debt charged off for $5,258 (1.g). auto loan debt past due for $190, with a balance of $2,671 (1.h). dental bill charged off for $668 (1.i). credit-card debt past due for $956 with a balance of $7,242 (1.j). federal government debts for $4,161 (1.k). federal government debts for $1,593 (1.l). federal government debts for $125 (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant had numerous delinquent debts, indicating financial irresponsibility; The applicant's efforts to resolve debts were only made after being notified of the security clearance jeopardy; The applicant did not demonstrate a consistent track record of financial responsibility.
Why the Applicant Was Denied
- The applicant had numerous delinquent debts, indicating financial irresponsibility.
- The applicant's efforts to resolve debts were only made after being notified of the security clearance jeopardy.
- The applicant did not demonstrate a consistent track record of financial responsibility.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's delinquent debts were numerous and recent.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlNo evidence that the applicant's discharge from the Navy was involuntary.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant has not received formal financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsPayments made were largely due to garnishment and not voluntary efforts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not provide evidence to substantiate his dispute of the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 12, 2018
- Answer filedNov 18, 2018
- Hearing heldJun 13, 2019Hearing rescheduled due to attorney's request.
- Decision dateSep 6, 2019
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Importance of Proactive Debt Resolution in Security Clearance Cases
- The Impact of Recent Financial Issues on Security Clearance Eligibility