Summary
A 60-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved debts totaling $30,059. The Statement of Reasons detailed four specific financial allegations. These included a 2011 court judgment for $2,912 related to scale-weighing equipment, a credit card account opened in 2001 with a $18,700 limit that was charged off for $20,301, a medical debt of $315 placed in collection, and a business credit card account opened in 1995 with a $6,000 limit that was charged off for $6,531.
The denial was based on the applicant's unresolved debts, which demonstrated an inability or unwillingness to satisfy financial obligations, and a history of not meeting these obligations. Despite a long employment history, the applicant's financial irresponsibility was a key factor.
Although several mitigating conditions were considered, the applicant failed to demonstrate responsible action regarding his financial issues. Specifically, he did not seek financial counseling or provide evidence that any of the debts had been resolved. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling $30,059, indicating an inability or unwillingness to satisfy debts (AG ¶ 19(a)).
- The applicant has a history of not meeting financial obligations (AG ¶ 19(c)).
- The applicant failed to demonstrate responsible action regarding his financial issues, including not seeking financial counseling or providing evidence of debt resolution.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness 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 numerous delinquent debts remain unresolved and have persisted since he regained employment.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile unemployment was beyond his control, the applicant did not act responsibly in addressing his debts.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant has not received any financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's claims of payment were unsubstantiated by evidence.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtThe applicant initially disputed a debt but later admitted to owing it.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJun 27, 2016
- Answer filedJul 13, 2016
- Hearing held—Applicant requested a decision on the record without a hearing.
- Decision dateMay 18, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Responsible Financial Behavior Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility