Summary
A 60-year-old program director for a defense contractor was denied a security clearance due to financial considerations under Guideline F, stemming from a history of delinquent debts and financial irresponsibility. The Statement of Reasons detailed multiple outstanding obligations, including a second mortgage charged off for $102,635, a $25,423 deficiency after a recreational vehicle repossession, and two charged-off credit card accounts totaling $18,261 and $5,062.
Additional allegations included a $1,236 cellphone account, a $527 medical bill, a $414 telecommunications bill, a $4,726 credit card account, and a $1,004 satellite television service bill, all referred for collection. A bankruptcy was also alleged. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (b), and (c) were raised, while mitigating conditions under AG ¶ 20(a), (b), (c), (d), and (e) were considered.
Ultimately, the judge denied the clearance, finding that the applicant had numerous unresolved delinquent debts and failed to demonstrate a good-faith effort to repay or resolve them. The applicant's financial situation was deemed not under control, and she had not contacted creditors regarding her debts.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts that were not resolved or addressed.
- She failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts.
- The applicant's financial situation is not under control, and she has not contacted creditors regarding her debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Infrequent, or Unlikely to Recur
- AG ¶ 20(b)rejectedConditions Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)rejectedInitiated and Adhered to a Good-faith Effort to Repay Debts
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedNov 17, 2016
- Answer filedFeb 17, 2017
- Hearing heldSep 13, 2017
- Decision dateDec 13, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Evaluation of Mitigating Conditions Under Guideline F