Loading case…

Summary

The applicant, a 46-year-old male with a history of financial difficulties, faced security concerns under Guideline F due to unresolved delinquent debts primarily stemming from unemployment and a divorce. Despite being employed since January 2015 and initiating a payment plan with a credit counseling service, the applicant failed to demonstrate sufficient progress in resolving his debts, leading to a denial of his security clearance application.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has unresolved delinquent debts that began accumulating in approximately 2012 that he was unable or unwilling to resolve. The debt in SOR ¶ 1.a ($2,430) is for a lease that was signed by his son (1.a). Applicant acknowledged during the interview that he was responsible for the medical debts alleged in SOR ¶ 1.b ($215) through 1.g, and 1.i through 1.l (1.b). Applicant disputed the debts in SOR ¶¶ 1.c, 1.f, and 1.i, and they were removed from his credit reports (1.c). Applicant acknowledged he owed the debt in SOR ¶ 1.d ($154), and it is not resolved (1.d). Applicant testified that he is waiting to see what his insurance will pay, but also indicated that he believed he would owe at least $2,000 for copayments on the debt in SOR ¶ 1.k ($18,433) (1.e). Applicant has made only one payment of $101 toward repayment of his delinquent debts, which did not occur until June 2017 (1.f). Applicant has unresolved delinquent debts that began accumulating in approximately 2012 that he was unable or unwilling to resolve. The debt in SOR ¶ 1.g ($714) is also unresolved (1.g). Applicant paid the debt in SOR ¶ 1.h ($141) and provided a supporting document (1.h). Applicant disputed the debts in SOR ¶¶ 1.c, 1.f, and 1.i, and they were removed from his credit reports (1.i). Applicant testified that the debts in SOR ¶ 1.j ($8,259), 1.k ($18,433), and 1.l ($1,641) are legitimate debts (1.j). Applicant is waiting to see what his insurance will pay, but also indicated that he believed he would owe at least $2,000 for copayments on the debt in SOR ¶ 1.k ($18,433) (1.k). Applicant testified that the debts in SOR ¶ 1.j ($8,259), 1.k ($18,433), and 1.l ($1,641) are legitimate debts (1.l). Applicant disputed the utility bill in SOR ¶ 1.m ($78) and intended to resolve it in the next week (1.m).

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(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has unresolved delinquent debts that began accumulating in approximately 2012; Most of the debts are over four years old and many remain unresolved; Applicant did not provide evidence of action he took to resolve any of his delinquent debts before he received the SOR.

Why the Applicant Was Denied

• Applicant has unresolved delinquent debts that began accumulating in approximately 2012.
• Most of the debts are over four years old and many remain unresolved.
• Applicant did not provide evidence of action he took to resolve any of his delinquent debts before he received the SOR.

Conditions Referenced

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

• SOR issuedDec 22, 2016
• Answer filedJan 30, 2017
• Hearing heldJun 7, 2017
• Decision dateJul 26, 2017

Cite For

• Failure to Mitigate Financial Considerations Under Guideline F
• Impact of Unresolved Debts on Security Clearance Eligibility
• Importance of Demonstrating Good-faith Efforts to Resolve Financial Issues