Summary
A 42-year-old graphic artist with military service was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts totaling approximately $160,612. The Statement of Reasons detailed multiple outstanding obligations, including about $102,073 in student loans, $50,079 in child support arrears, and a $2,441 deficiency from a vehicle repossession. Additional debts included educational loans, a credit-union overdraft, a department-store charge account, telecommunications and cable service debts, and an auto insurance premium.
Disqualifying conditions under Guideline F were raised, citing a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While the applicant presented some mitigating circumstances, such as personal hardships, these were not sufficient to overcome the security concerns.
The denial was based on the numerous and recent delinquent debts, the applicant's failure to provide sufficient evidence of efforts to resolve these debts or contact creditors, and the resulting concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has numerous and recent delinquent debts totaling approximately $160,612.
- The applicant failed to provide sufficient evidence of efforts to resolve his debts or contact creditors.
- The applicant's financial irresponsibility raises concerns about his reliability and trustworthiness.
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(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's inability to pay debts was partly due to past legal expenses, which are unlikely to recur.
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe applicant's financial issues were exacerbated by personal circumstances, including two divorces and custody litigation.
- AG ¶ 20(d)notedGood-faith Effort to Repay Debts
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of DebtThe applicant has a legitimate dispute regarding the child-support arrearage.
Key Rule Quoted
“Once a concern arises regarding an applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedSep 5, 2017
- Answer filedOct 28, 2017
- Hearing held—Decision made on the record without a hearing.
- Decision dateMay 3, 2018
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Importance of Demonstrating Responsible Actions to Resolve Debts
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility.