Summary
A 31-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $20,964 in delinquent debts. The Statement of Reasons detailed eight specific allegations, including an unsecured loan charged off for $9,735 in January 2017, a collection account for $4,836 opened in September 2017, and a credit card account charged off for $2,579 in May 2017. Other debts included various charged-off accounts and telecommunications debts placed for collection, with the earliest charge-off occurring in May 2016.
The applicant admitted to these debts, which he attributed to unemployment and personal circumstances. While he hired a credit counselor, the applicant did not contact creditors or make efforts to resolve the debts until after being notified of security concerns.
Ultimately, the clearance was denied because the applicant's financial problems were not under control, and he failed to provide evidence of payments or payment agreements. Disqualifying conditions under Adjudicative Guideline Paragraphs 19(a) and 19(c) were raised, while mitigating conditions under Paragraphs 20(b), 20(c), and 20(d) were applied but deemed insufficient to overcome the security concerns.
Why the Applicant Was Denied
- The applicant admitted to numerous delinquent debts totaling approximately $20,964.
- The applicant did not contact creditors or make efforts to resolve debts until after being notified of security concerns.
- The applicant's financial problems were not under control, and he failed to provide evidence of payments or payment agreements.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile unemployment was beyond the applicant's control, the debts incurred were not due to circumstances beyond his control.
- AG ¶ 20(c)rejectedReceiving Financial CounselingAlthough the applicant received counseling, he did not demonstrate that his financial problems were under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide evidence of significant actions to implement his financial plan.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMar 13, 2019
- Answer filedMay 7, 2019
- Hearing heldAug 26, 2019
- Decision dateOct 9, 2019
Cite For
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Impact of Financial Issues on Security Clearance Eligibility
- Importance of Timely Action in Addressing Financial Concerns