Summary
A 25-year-old service desk technician with prior military service was denied a security clearance under Guideline F (Financial Considerations) due to approximately $39,000 in significant delinquent debts. The Statement of Reasons detailed three specific allegations: a charged-off car loan for $26,583, a charged-off credit card account for $8,633, and another credit card account referred for collection for $4,112.
The decision cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c). While Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were ultimately deemed insufficient.
The denial was based on the applicant's admission of the three substantial delinquent debts and the failure to provide evidence of financial counseling or timely payments. Furthermore, the submitted plan to resolve these debts lacked adequate supporting documentation, leading to the conclusion that it was insufficient to mitigate concerns regarding the applicant's reliability and trustworthiness.
Why the applicant was denied
- The applicant admitted to three significant delinquent debts totaling approximately $39,000.
- The applicant did not provide evidence of financial counseling or timely payments.
- The applicant's plan to resolve debts lacked supporting documentation and was deemed insufficient to mitigate concerns.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's unemployment in 2017 did not establish mitigation as he provided no evidence of actions to pay debts once employed.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant did not submit evidence of financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant's promise to resolve debts in the future was not supported by a track record of timely payments.
Key rule quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural posture
- SOR issuedFeb 5, 2021
- Answer filedFeb 18, 2021
- Hearing held—Applicant requested a decision on the written record without a hearing.
- Decision dateOct 27, 2021
Cite for
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Financial Responsibility and Counseling
- Importance of Demonstrating a Track Record of Timely Debt Payments for Clearance Eligibility