Summary
A 54-year-old government contractor and National Guard member was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues totaling approximately $53,000. The Statement of Reasons cited a $24,804 past-due mortgage note, a $7,219 admitted credit card collection, and an admitted history of financial difficulties. Other debts, including student loans, a charged-off credit card, and a consumer telecommunications collection, were resolved.
Disqualifying conditions related to financial difficulties and an inability to meet financial obligations were raised. While mitigating conditions such as the financial problems being largely beyond the applicant's control, good-faith efforts to resolve debts, and the problems being remote in time were considered, they were ultimately insufficient.
The denial was based on the applicant's long history of financial difficulties, dating back to 1997, and a failure to provide sufficient evidence of current financial stability or a good-faith effort to resolve the outstanding debts. Consequently, eligibility for access to classified information was denied.
Why the Applicant Was Denied
- The applicant has unresolved financial issues totaling approximately $53,000.
- The applicant has a long history of financial difficulties dating back to 1997.
- The applicant failed to provide sufficient evidence of current financial stability or a good-faith effort to resolve debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant has a long history of financial difficulties.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant admitted to not being financially responsible.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant failed to provide documentation of effective financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not establish a good-faith effort to resolve remaining debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedMay 28, 2020
- Answer filedJun 15, 2020Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateApr 20, 2021
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Financial Stability for Security Clearance Eligibility
- Impact of Historical Financial Difficulties on Current Reliability and Trustworthiness