Summary
The applicant, a 59-year-old government contractor, faced security clearance denial under Guideline E and Guideline F due to 34 delinquent debts totaling $126,882. While he provided some mitigating information regarding certain debts, he failed to demonstrate sufficient resolution of the majority of his debts, leading to a denial of eligibility for access to classified information.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose his delinquent student loan debts on his August 6, 2015 SCA. Section 26 of his SCA asks whether Applicant is currently delinquent on any Federal debt. Applicant answered, “No.” (2.a). SOR ¶ 1.a alleges a charged-off debt for $16,778 (1.a). SOR ¶ 1.c alleges a NAVIENT charged-off student loan for $9,007 (1.c). SOR ¶ 1.h alleges a student loan debt (UP) placed for collection for $6,695 (1.h). SOR ¶ 1.i alleges a student loan debt (UP) placed for collection for $6,695 (1.i). SOR ¶ 1.j alleges two student loan debts owed to NSL placed for collection for $5,326 and $2,814 (1.j). SOR ¶ 1.k alleges a telecommunications debt placed for collection for $2,108 (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant did not provide documentation showing resolution of 25 SOR debts totaling $73,523; He failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts; Insufficient evidence was presented to show that financial problems were being resolved or under control.
Why the Applicant Was Denied
- The applicant did not provide documentation showing resolution of 25 SOR debts totaling $73,523.
- He failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts.
- Insufficient evidence was presented to show that financial problems were being resolved or under control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient details about how circumstances beyond his control negatively affected his finances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to establish a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant did not provide documented proof to substantiate the existence or basis of any debt disputes.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 11, 2016
- Answer filedOct 26, 2016Requested decision without a hearing.
- Hearing held—No hearing; decision made based on written submissions.
- Decision dateMar 28, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Delinquent Debts
- Insufficient Evidence of Financial Responsibility
- Failure to Demonstrate Good-faith Efforts in Debt Resolution