Summary
A 59-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved student loans and delinquent debts. The Statement of Reasons detailed several specific financial obligations, including a $14,926 debt to an apartment complex, which became delinquent in 2013 and was settled for $5,224 and paid in November 2018.
Additional debts included an $854 credit card debt, a $380 credit card debt, and a $295 credit card debt, all of which became delinquent in 2013 and were paid in November 2018. A $675 debt to a credit union, owed for five or six years, was also paid in November 2018. Furthermore, a $637 debt and a $167 debt to a cable company were both paid in January 2018, and a $94 insurance debt was paid.
Despite resolving some of these debts, the applicant's financial issues were exacerbated by periods of unemployment, for which he failed to budget. The applicant did not begin to address his delinquent debts until 2018, after receiving the Statement of Reasons. Ultimately, the applicant's failure to manage financial obligations raised significant concerns about reliability and trustworthiness, leading to the conclusion that he did not mitigate the security concerns, and the clearance was denied.
Why the Applicant Was Denied
- The applicant had a history of failing to resolve student loans and delinquent debts.
- He did not begin to address his delinquent debts until 2018, after receiving the SOR.
- The applicant's financial issues were exacerbated by periods of unemployment, but he failed to budget for these foreseeable circumstances.
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)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedReceiving Financial CounselingThe applicant consulted a financial counselor and was working on a budget.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good-faith effort to resolve his student loans.
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 issuedOct 31, 2018
- Answer filedDec 28, 2018
- Hearing heldMay 28, 2019
- Decision dateJun 24, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Financial Mismanagement on Reliability and Trustworthiness
- Consideration of Periods of Unemployment in Financial Evaluations