Summary
A 74-year-old CAD designer was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant admitted to four delinquent debts totaling approximately $48,000. These included an individual account opened in March 2020, charged off around 2023; another individual account opened around July 2019, listed as closed and disputed after resolution; a charged-off auto loan; and a fourth individual account opened in November 2018, charged off around 2023 and also disputed after resolution.
The Statement of Reasons cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c). While Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's admission of the four unresolved delinquent debts. The applicant failed to provide evidence of efforts to mitigate these financial issues, such as making payments or seeking financial counseling. Ultimately, these financial problems raised significant trustworthiness concerns, leading to the denial of eligibility for access to classified information.
Why the applicant was denied
- The applicant admitted to four delinquent debts totaling approximately $48,000, which remain unresolved.
- The applicant failed to provide evidence of efforts to mitigate the financial issues, such as payments or financial counseling.
- The applicant's financial problems raised significant trustworthiness concerns.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's delinquent debts are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant was employed after being laid off and did not act responsibly to resolve debts.
- AG ¶ 20(c)rejectedReceived Financial CounselingNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to repay the debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide evidence to support a reasonable basis for disputing the 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 issuedSep 24, 2024
- Answer filedSep 26, 2024Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateSep 10, 2025
Cite for
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Mitigation Efforts for Financial Concerns
- Impact of Financial Distress on Trustworthiness and Reliability