Summary
A 56-year-old defense contractor employee was denied a security clearance due to financial considerations under Guideline F. The applicant had numerous delinquent debts totaling over $16,700, which raised concerns about his reliability and trustworthiness.
Specific allegations included a $6,915 deficiency after an automobile repossession, $4,186 in early lease termination charges, and several collection accounts ranging from $70 to $403 for insurance and telecommunication services. Additionally, two judgments were filed against the applicant in April 2012 for $415 and in May 2012 for $765.
The denial was based on the applicant's failure to provide evidence of efforts to resolve or dispute these debts. The judge found no mitigating evidence of financial counseling or good-faith efforts to repay creditors, leading to the conclusion that the financial issues were not sufficiently mitigated.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling over $16,700.
- He failed to provide evidence of efforts to resolve his debts or to dispute their legitimacy.
- The applicant's financial issues were not mitigated by any evidence of financial counseling or good-faith efforts to repay creditors.
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 That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's unemployment was partly voluntary and he provided no evidence linking medical debts to his surgery.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant submitted no evidence of financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant provided no evidence of good-faith efforts to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documentation to substantiate any disputes.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 22, 2017
- Answer filedSep 14, 2017Requested decision on the record without a hearing.
- Hearing held—No hearing; decision made on the record.
- Decision dateFeb 23, 2018
Cite For
- Denial Based on Inability to Satisfy Debts Under Guideline F
- Lack of Evidence for Mitigating Financial Conditions
- Importance of Demonstrating Good-faith Efforts to Resolve Debts