Summary
A 35-year-old electrical foreman was denied a security clearance under Guideline F (Financial Considerations) due to multiple delinquent debts totaling approximately $15,000. The Statement of Reasons detailed several collection accounts, including one for $7,836, another for $502, and a credit card account charged off for $5,864. Additionally, there were two cellphone accounts placed for collection, totaling $339 and $309 respectively, along with another collection account for $676 and a medical bill for $81.
Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied, they were ultimately insufficient to overcome the security concerns.
The denial was based on the applicant's admission of the $15,000 in delinquent debts and his failure to take meaningful action to resolve these issues until the hearing was imminent. Furthermore, the financial counseling he received did not provide clear indications that his financial situation was under control, leading to the determination that he had not demonstrated sufficient responsibility or a track record of timely debt repayment.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling approximately $15,000.
- He failed to take meaningful action to resolve his debts until the hearing was imminent.
- The applicant's financial counseling did not provide clear indications that his financial situation was under control.
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, Was Infrequent, or Unlikely to RecurThe applicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's ControlWhile some circumstances were beyond control, the applicant did not act responsibly.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceInsufficient evidence to show that the financial situation is under control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsEstablished for cellphone debts, but not for other debts.
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due DebtEstablished for the medical debt, but not for other debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 29, 2017
- Answer filedJul 18, 2017
- Hearing heldDec 7, 2017
- Decision dateMar 9, 2018
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Importance of Demonstrating a Track Record of Timely Debt Repayment
- Impact of Financial Counseling on Security Clearance Eligibility