Summary
The applicant, a 39-year-old defense contractor, sought security clearance under Guideline F for financial considerations, admitting to multiple delinquent debts totaling approximately $24,000. The administrative judge found the applicant's financial issues unresolved and indicative of potential unreliability, leading to a denial of security clearance. The decision emphasized the importance of financial responsibility in maintaining national security eligibility.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Debt charged off in the approximate amount of $10,974. Applicant opened this line of credit account with Bank A in March 2013. He defaulted on repaying the line of credit in July 2016. He has made no further payments on this account. This debt is not resolved (1.a). Debt charged off in the approximate amount of $8,610. Applicant opened this installment loan account with Bank A in August 2014. He defaulted on repaying the loan in June 2016. He has made no further payments on this loan. This debt is not resolved (1.b). Debt charged off in the approximate amount of $3,151. Applicant opened this credit-card account with Bank A in June 2011. He defaulted on repaying the account in August 2016. He has made no further payments on this account. This debt is not resolved (1.c). Debt charged off in the approximate amount of $729. Applicant opened this credit-card account with Bank B in August 2018. He defaulted on repaying the account in February 2020. He has made no further payments on this account. This debt is not resolved (1.d). Debt placed for collection in the approximate amount of $310. Applicant defaulted on paying for his satellite TV service in about 2019. The creditor referred the account to a collection agency. Applicant blamed the debt on his roommates, who refused to contribute to pay this bill. He has made no payments on this account. This debt is not resolved (1.e).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant admitted to multiple delinquent debts totaling approximately $24,000, which were unresolved; The applicant made no efforts to resolve his debts since 2016 and incurred additional debts since then; The applicant did not provide evidence of financial counseling or repayment efforts.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling approximately $24,000, which were unresolved.
- The applicant made no efforts to resolve his debts since 2016 and incurred additional debts since then.
- The applicant did not provide evidence of financial counseling or repayment efforts.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
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 issuedNov 19, 2020
- Answer filedDec 2, 2021
- Hearing held—Applicant requested decision on written record.
- Decision dateNov 21, 2022
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Financial Stability for National Security Positions