Summary
A 39-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to 24 delinquent debts exceeding $200,000. The Statement of Reasons specifically cited two charged-off accounts from August 2017, each for $33,018. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns. The denial was based on the significant amount of unresolved delinquent debt and the applicant's failure to establish a consistent track record of regular and timely payments.
Ultimately, the applicant's financial issues raised concerns regarding his reliability and judgment, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a significant amount of unresolved delinquent debts totaling over $200,000.
- The applicant did not establish a meaningful track record of regular and timely payments on his debts.
- The applicant's financial issues raised concerns about his reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, he did not act responsibly under those circumstances.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not demonstrated a consistent effort to resolve his debts.
Key Rule Quoted
“An applicant does not have to be debt-free in order to qualify for a security clearance. Rather, all that is required is that an applicant act responsibly given his circumstances and develop a reasonable plan for repayment, accompanied by 'concomitant conduct' that is, actions which evidence a serious intent to effectuate the plan.”
Procedural Posture
- SOR issuedOct 12, 2017
- Answer filedNov 4, 2017Applicant requested a decision on the record without a hearing.
- Hearing held—No hearing; decision made on the record.
- Decision dateMar 27, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating Responsible Financial Management for Security Clearance Eligibility
- Evaluation of Financial Considerations Under Guideline F