Summary
A 38-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts totaling over $20,000. The Statement of Reasons detailed several outstanding financial obligations. These included a mortgage account with an approximate past-due amount of $17,982 and a total balance of $221,112, which remained outstanding.
Additionally, the applicant had two delinquent credit card accounts with CAP ONE, one past due by approximately $281 with a total balance of $1,457, and another past due by approximately $183 with a total balance of $1,089. Both of these credit card debts were subsequently settled. However, a delinquent department store account, charged off for approximately $787, and a delinquent medical account, placed for collection for approximately $222, remained owing.
The denial was based on the applicant's excessive delinquent debts, which had increased to over $40,000 for the mortgage account alone. The applicant failed to provide documentation for claimed loan modifications or debt repayment plans and did not demonstrate that his financial problems were under control or that he had acted responsibly regarding his debts. While mitigating condition AG ¶ 20(b) was considered, it was insufficient to overcome the disqualifying conditions.
Why the Applicant Was Denied
- The applicant has excessive delinquent debts totaling over $20,000, including a mortgage account that has increased to $40,000.
- The applicant failed to provide documentation to substantiate claims of a loan modification or any debt repayment plans.
- The applicant did not demonstrate that his financial problems are under control or that he acted responsibly regarding 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)rejectedConditions Beyond the Person's ControlThe applicant voluntarily entered into the mortgage agreement, and the financial issues were not shown to be beyond his control.
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 issuedMar 23, 2017
- Answer filedApr 12, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateJan 26, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Providing Documentation to Support Claims of Financial Responsibility
- Application of the Whole-person Concept in Security Clearance Decisions.