Summary
The applicant, a DOD contractor employee with a history of financial difficulties, faced security clearance denial under Guideline F due to numerous delinquent debts totaling $34,636. Despite acknowledging his financial issues, he failed to provide evidence of a plan to resolve them or any financial counseling, leading to concerns about his reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $14,101 car loan that was charged off in May 2014 (1.a). a $6,809 car loan account that was charged off in February 2013 (1.b). a $6,263 debt resulting from a car repossession in April 2014 (1.c). a delinquent student loan account placed for collection in the amount of $1,069 (1.d). a delinquent student loan account placed for collection in the amount of $535 (1.e). a delinquent student loan account placed for collection in the amount of $244 (1.f). a $1,105 debt placed for collection (1.g). a $4,375 debt placed for collection in October 2012 (1.h). a $135 medical account placed for collection in May 2015 (1.i).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c. The judge applied mitigating conditions F.2.b, F.2.a, F.2.c, F.2.d. The decision turned on the following: Applicant incurred nine delinquent accounts totaling approximately $34,636; Applicant did not demonstrate a good-faith effort to resolve his delinquent debts; Applicant failed to provide evidence of financial counseling or a repayment plan.
Why the Applicant Was Denied
- Applicant incurred nine delinquent accounts totaling approximately $34,636.
- Applicant did not demonstrate a good-faith effort to resolve his delinquent debts.
- Applicant failed to provide evidence of financial counseling or a repayment plan.
Conditions Referenced
- F.1.aappliedInability to Satisfy Debts
- F.1.bappliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.cappliedHistory of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant was unemployed for a year before starting his current job.
- F.2.arejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.crejectedReceived or Is Receiving Financial Counseling
- F.2.drejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedDec 22, 2016
- Answer filedJan 13, 2017Requested decision on the record.
- Hearing held—No hearing; decision made on the record.
- Decision dateNov 28, 2017
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Importance of Demonstrating a Plan to Resolve Financial Issues for Security Clearance Eligibility
- Impact of Financial Difficulties on Reliability and Trustworthiness Assessments.