Summary
A 40-year-old former U.S. Army service member was denied a security clearance under Guideline F, Financial Considerations, due to 12 unresolved delinquent debts totaling approximately $46,529. These debts included multiple credit card accounts that became delinquent between 2017 and 2018, with several subsequently charged off or placed for collection. Specific examples include an $8,814 credit card account charged off in February 2018, a $7,033 account placed for collection in June 2018, and a $6,208 account charged off in July 2017.
The administrative judge found that the applicant's financial issues were not mitigated. Although the applicant initiated debt-resolution efforts in May 2023, these actions occurred only after he was notified of security concerns. The applicant failed to provide a monthly budget or sufficient evidence to demonstrate his financial capability to address the debts.
Ultimately, the timing of the applicant's debt-resolution efforts raised concerns about his judgment and self-discipline, leading to the conclusion that the financial concerns were not adequately mitigated. The security clearance was therefore denied.
Why the Applicant Was Denied
- The applicant admitted to 12 delinquent debts totaling approximately $46,529, which he did not address until after being notified of security concerns.
- The applicant did not provide a monthly budget or sufficient evidence to demonstrate financial capability to address his debts.
- The timing of the applicant's debt-resolution efforts raised concerns about his judgment and self-discipline.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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 ControlAlthough the applicant faced significant financial obligations, he did not demonstrate responsible actions to address his debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's debt-resolution efforts were deemed insufficient and poorly timed.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedMay 10, 2023
- Answer filedMay 16, 2023
- Hearing heldAug 10, 2023via video teleconferencing
- Decision dateSep 28, 2023
Cite For
- Financial Responsibility Under Guideline F
- Timing of Debt-resolution Efforts as a Factor in Security Clearance Decisions
- Burden of Proof on the Applicant to Mitigate Financial Concerns