Summary
A 50-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to delinquent debts totaling $34,769. The Statement of Reasons detailed several outstanding financial obligations.
Specifically, the applicant established a payment plan for a $1,965 utility bill in September 2017, intending to make $100 monthly payments, though proof of the first payment was not provided. He claimed to have paid a $245 utility bill in July 2017. For a $439 cable bill, he arranged $50 payments in August 2017 but had not yet made any. A $29,594 medical debt, stemming from a heart attack, was negotiated down to $9,000, but the applicant lacked funds to pay it. Additionally, a $714 medical debt and an $1,812 dental bill remained unresolved.
The denial was based on the applicant's ongoing financial difficulties, which began in 2012. He failed to provide evidence of financial counseling or demonstrate that his delinquencies were under control. The decision highlighted his inability to establish a solid budget or a consistent record of responsible debt payment.
Why the Applicant Was Denied
- The applicant has a history of financial difficulties that began in 2012 and continue to the present.
- He did not provide evidence of financial counseling or that his financial delinquencies are under control.
- The applicant has not established a solid budget or a record of responsibly paying his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe applicant's financial delinquencies arose from periods of underemployment and a serious medical issue.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant established a payment plan for one utility bill.
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 issuedJun 28, 2017
- Answer filedJul 17, 2017
- Hearing heldSep 21, 2017via MS Teams
- Decision dateFeb 27, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Demonstrating Financial Responsibility for Security Clearance
- Impact of Unresolved Debts on National Security Eligibility