Summary
A 40-year-old defense contractor was denied a security clearance due to financial considerations under Guideline F, stemming from $61,321 in delinquent debts. These issues primarily arose during his divorce. The Statement of Reasons (SOR) detailed 11 allegations, including a $10,671 automobile loan, four credit card accounts totaling $22,507, and a $146 consumer account. Two additional credit card accounts were charged off for unspecified amounts, and one private student loan remains unresolved. The government withdrew one allegation, and the applicant admitted all but two of the allegations.
The applicant successfully rehabilitated federal student loan accounts totaling $21,696 and $4,392, which were initially alleged in the SOR. However, the judge found that the applicant still had $35,233 in unresolved and unpaid debts.
The denial was based on the finding that the applicant's decision not to pay these delinquent debts was driven by self-interest rather than a good faith effort to resolve them. Furthermore, the applicant did not sufficiently demonstrate that the circumstances leading to his financial difficulties were largely beyond his control, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling $35,233 that remain unpaid.
- The applicant's decision to not pay delinquent debts was based on self-interest rather than a good faith effort to resolve them.
- The applicant did not demonstrate that the circumstances leading to his financial issues were largely beyond his control.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)rejectedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedSep 1, 2020
- Answer filed—
- Hearing held—Decision made based on written record.
- Decision dateJan 5, 2021
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Criteria for Mitigating Financial Considerations Under Guideline F