Summary
A 61-year-old electrical plater was denied a security clearance under Guideline F (Financial Considerations) due to over $66,000 in delinquent debt, primarily student loans, accumulated over nine years. The Statement of Reasons detailed several unresolved debts, including a $277 collection account from 2011 for unpaid insurance, a $6,034 charged-off credit card from October 2015, and a $1,574 collection account from 2008 that the applicant contested without documentation.
Additional unresolved debts included an $8,462 collection account from 2015 that the applicant did not recognize, a $6,600 collection account delinquent since 2009 for which no resolution actions were documented, and a $4,704 collection account delinquent since 2015 that the applicant intended to resolve but lacked funds.
Despite some payments made through wage garnishment, the applicant failed to demonstrate a good-faith effort to resolve the outstanding debts or provide evidence of financial counseling. The persistent nature of these financial issues, dating back over nine years, led to the conclusion that security concerns were not mitigated, resulting in the denial of the security clearance.
Why the Applicant Was Denied
- Applicant incurred over $66,000 in delinquent debt, most of which remains unpaid.
- Applicant failed to demonstrate a good-faith effort to resolve debts or provide evidence of financial counseling.
- The applicant's financial issues date back over nine years and continue to persist.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurApplicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions Beyond ControlApplicant did not demonstrate responsible handling of debts.
- AG ¶ 20(c)rejectedFinancial Counseling ReceivedNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsApplicant failed to show a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtsNo evidence was provided to dispute the legitimacy of 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 1, 2016
- Answer filedOct 14, 2016
- Hearing heldJul 27, 2017Record left open until August 10, 2017.
- Decision dateNov 1, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Good-faith Efforts in Debt Resolution
- Impact of Financial Distress on National Security Eligibility