Summary
A 35-year-old electrician was denied a security clearance under Guideline F (Financial Considerations) due to approximately $45,619 in delinquent debts. The applicant admitted to all seven allegations detailed in the Statement of Reasons. These included a $21,120 charged-off debt consolidation loan, for which he had taken no action, and a $14,661 charged-off credit card account that resulted in a civil judgment against him on January 8, 2019.
Additional debts included a $4,883 electronics store account, a $1,862 clothing store account, a $1,532 auto repair account, and a $1,284 department store account, which he settled for less than the full amount. He also had a $327 telecommunications bill placed for collection after moving without resolving it.
Despite admitting to the debts and offering some context for his financial difficulties, the applicant failed to demonstrate responsible financial management or provide evidence of debt resolution. His explanations for not addressing the debts were deemed unconvincing and lacked supporting documentation, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to all allegations of delinquent debts totaling approximately $45,619.
- The applicant failed to provide evidence of responsible financial management or resolution of debts.
- The applicant's explanations for not addressing his debts were unconvincing and lacked supporting documentation.
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 Infrequent, or Unlikely to RecurThe applicant's delinquent debts are recent and numerous.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were beyond the applicant's control, he did not act responsibly to address his debts.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant submitted no evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant admitted to doing nothing to resolve several debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 13, 2020
- Answer filedJun 25, 2021
- Hearing heldMay 2, 2022Hearing rescheduled due to technical issues.
- Decision dateMay 31, 2022
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Failure to Provide Evidence of Debt Resolution
- Insufficient Demonstration of Responsible Financial Management