Summary
A 57-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to six delinquent credit card accounts totaling approximately $41,440. The Statement of Reasons detailed these debts, including three accounts from the same bank placed for collection, amounting to $14,280, $4,755, and $2,550. Additionally, one credit card account was placed for collection at $5,258, and two other accounts were charged off for $11,954 and $2,643, respectively.
The applicant admitted to the allegations concerning the delinquent accounts. However, the denial was based on his failure to provide sufficient evidence of financial responsibility or mitigation. Specifically, he did not submit documentation of payments, payment agreements, or other resolutions for any of the outstanding debts.
Furthermore, the applicant's assertions of financial hardship were not substantiated with supporting documentation. While several mitigating conditions were considered, the lack of concrete evidence regarding debt resolution or verifiable hardship ultimately led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to having six delinquent credit-card accounts totaling approximately $41,440.
- He provided no evidence of payments, payment agreements, or other resolutions for the debts.
- The applicant's claims of financial hardship were not substantiated with documentation.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's delinquent debts are recent and numerous.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient details or documentation of the financial impact of his circumstances.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant submitted no evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's promises to pay were not supported by a track record of timely payments.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtsThe applicant did not dispute any of the debts alleged in the SOR.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJul 20, 2018
- Answer filedOct 4, 2018
- Hearing held—Decision made on the written record.
- Decision dateMar 15, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Financial Mitigation Despite Personal Hardships
- Importance of Documentary Evidence in Establishing Financial Responsibility