Summary
A 55-year-old software manager was denied a security clearance under Guideline F, Financial Considerations, due to multiple unresolved delinquent debts. The Statement of Reasons detailed five specific financial issues. These included a state tax lien for $3,548 filed in February 2001, and a credit card debt of $2,369 charged off as bad debt, as reflected on an August 15, 2006 credit report.
The same August 2006 report also showed a delinquent credit card debt of $3,225. Additionally, a May 6, 2004 credit report indicated a delinquent telephone bill for $80 placed for collection and a credit card debt of $1,033 that was over 120 days past due. These allegations raised several disqualifying conditions under Guideline F.
While the applicant had resolved a child support arrearage and a federal tax liability, these actions were not sufficient to mitigate the overall security concerns. The denial was based on the applicant's five remaining unresolved delinquent debts, totaling approximately $10,256, and a failure to present a realistic plan to address these financial issues. The decision concluded that the applicant's financial irresponsibility and lack of action had not mitigated the security concerns.
Why the Applicant Was Denied
- Applicant has five unresolved delinquent debts totaling about $10,256.
- Applicant failed to demonstrate a realistic plan to resolve his financial issues.
- Applicant's financial irresponsibility and lack of action to address debts raised security concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)notedConsistent Spending Beyond One’s Means
- AG ¶ 19(g)notedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant's multiple debts continue to persist.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some conditions were beyond control, debts were incurred after divorce and no evidence of responsible conduct was shown.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemApplicant has not yet begun a counseling program.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant has not initiated any effort to resolve the debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant has taken no action to dispute the debts.
Key Rule Quoted
“"No one has a ‘right’ to a security clearance."”
Procedural Posture
- SOR issuedMay 23, 2007
- Answer filedJul 14, 2007
- Hearing heldSep 18, 2007
- Decision dateOct 9, 2007
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate a Realistic Plan for Debt Resolution
- Impact of Financial Irresponsibility on Security Clearance Eligibility