Summary
A 34-year-old defense contractor and Navy veteran was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved delinquent debts totaling $51,495. The Statement of Reasons detailed several financial issues, including two unresolved automobile repossessions from 2014, totaling $34,762 and $12,640 respectively. An internet bill for $326 was reported delinquent in 2014, and a medical account for $2,375 was reported unpaid, though the applicant stated it was covered by the VA.
Other debts were resolved: a $141 state tax lien from January 2014 was paid that same month, and a $976 state tax lien from April 2011 was paid in January 2014. A $275 judgment was paid in October 2016. Disqualifying conditions under AG ¶ 19(a), (b), and (c) were raised, while mitigating conditions under AG ¶ 20(b) and (d) were considered.
Despite some mitigation efforts on smaller debts, the applicant failed to demonstrate responsible financial management, particularly during periods of unemployment. The denial was based on the applicant's history of unresolved delinquent debts and insufficient evidence of participation in credit or financial counseling.
Why the Applicant Was Denied
- Applicant has a history of unresolved delinquent debts totaling $51,495.
- Applicant did not provide sufficient evidence of responsible financial management during periods of unemployment.
- Applicant failed to demonstrate participation in credit or financial counseling.
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 Largely Beyond the Person's ControlApplicant's financial difficulties were exacerbated by significant periods of unemployment.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant resolved some smaller debts but did not provide evidence of efforts for larger 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 issuedMay 23, 2017
- Answer filedJun 17, 2017
- Hearing heldJan 10, 2018DOHA received the hearing transcript on January 19, 2018.
- Decision dateApr 16, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Responsible Financial Management in Security Clearance Cases