Summary
The applicant, a 30-year-old defense contractor, sought a security clearance but was denied due to significant financial issues, including over $42,000 in delinquent debts. Despite admitting to financial irresponsibility and hiring a credit counselor, the judge found insufficient evidence of efforts to resolve the debts, leading to concerns about the applicant's reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to BMW Financial for an account that was charged off in the approximate amount of $14,874 (1.a). Applicant was indebted to Portfolio for an account that was placed in collection in the approximate amount of $7,845 (1.b). Applicant was indebted to Wells Fargo Bank for an account that was charged off in the approximate amount of $4,880 (1.c). Applicant was indebted to Portfolio for an account that was placed in collection in the approximate amount of $3,442 (1.d). Applicant was indebted to Wells Fargo Bank CD SVC for an account that was charged off in the approximate amount of $2,643 (1.e). Applicant was indebted to SYNCB/PayPal for an account that was charged off in the approximate amount of $413 (1.f). Applicant is indebted to Portfolio for an account that was placed for collection in the approximate amount of $2,373 (1.g). Applicant was indebted to Midland MCM for an account that was placed for collection in the approximate amount of $1,500 (1.h). Applicant was indebted to TBOMMILSTN for an account that was past due in the amount of $160 with a total approximate balance of $509. Applicant states that he settled the debt for about $350 (1.i). Applicant was indebted to Midland MCM for an account that was placed in collection in the approximate amount of $474 (1.j). Applicant was indebted to SD County for an account that was charged off in the approximate amount of $232 (1.k). Applicant was indebted to Midland Funding for an account that was placed for collection in the approximate amount of $3,654 (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has twelve delinquent debts totaling over $42,000, indicating poor financial management; The applicant admitted to living beyond his means and failed to demonstrate a good-faith effort to resolve his debts; The applicant's financial decisions raised significant concerns regarding reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has twelve delinquent debts totaling over $42,000, indicating poor financial management.
- The applicant admitted to living beyond his means and failed to demonstrate a good-faith effort to resolve his debts.
- The applicant's financial decisions raised significant concerns regarding reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debt Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant was consistently employed since 2017 and did not show reasonable efforts to resolve debts.
- AG ¶ 20(d)rejectedInitiated and Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of effective actions taken to resolve debts.
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedAug 20, 2018
- Answer filedSep 14, 2018
- Hearing heldDec 6, 2018
- Decision dateJan 28, 2019
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Debt Resolution Efforts Leading to Denial
- Impact of Financial Management on Reliability and Trustworthiness Assessments