Summary
A 31-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of unpaid student loans and delinquent credit card debts. Disqualifying conditions included a pattern of financial irresponsibility and an inability or unwillingness to satisfy debts.
Specific concerns included an $8,186 judgment for an unpaid credit card from July 2013, which resulted in wage garnishment. While one $548 credit card debt was paid in 2011, the applicant's financial difficulties began in 2008 and persisted.
Despite positive factors such as employment stability and a stated willingness to settle debts, the applicant failed to demonstrate sufficient mitigation. The applicant did not provide evidence of participation in credit or financial counseling, admitted to misusing credit cards, and had not made payments on the majority of outstanding debts or established a solid plan for their resolution.
Why the Applicant Was Denied
- The applicant has a history of financial difficulties that began in 2008 and continues to date.
- The applicant did not present evidence to establish mitigation under AG ¶ 20(b) for his delinquent credit card debts, as he admitted to misusing them.
- The applicant did not provide evidence of participation in credit or financial counseling as required under AG ¶ 20(c).
- The applicant has not made payments on the majority of his debts or established a solid plan to resolve them.
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)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe circumstances underlying the student loan debts, specifically the school’s closing, were not within the applicant's control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant paid the smallest debt alleged in SOR ¶ 1.e.
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided some evidence that he has a reasonable basis for disputing the student loan 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 issuedFeb 21, 2017
- Answer filedApr 5, 2017
- Hearing heldSep 19, 2017Hearing transcript received on September 27, 2017.
- Decision dateFeb 27, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Mitigation Efforts for Financial Issues
- Consideration of the Whole-person Concept in Security Clearance Decisions