Summary
A 55-year-old defense contractor, with a history of security clearances, was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial debts totaling $42,862. The Statement of Reasons detailed several financial obligations, including a $15,604 credit card judgment that was paid, and a $13,629 joint credit card debt that was cancelled by the bank in November 2008, though it still appeared on his credit report due to the IRS Form 1099C listing only his late wife.
Other debts included an unresolved $4,731 credit card debt, and two smaller debts of $207 and $110, which the applicant did not recognize and had not formally disputed. An $85 department store credit card debt was paid, but the applicant lacked a receipt.
Despite some efforts to resolve specific debts, the denial was based on the applicant's failure to demonstrate a meaningful track record of financial responsibility, a lack of a comprehensive plan to resolve outstanding debts, and an unresolved financial situation where expenses continued to exceed income.
Why the Applicant Was Denied
- The applicant failed to demonstrate a meaningful track record of financial responsibility and good judgment.
- The applicant did not provide evidence of a comprehensive plan to resolve outstanding debts.
- The applicant's financial situation remains unresolved, with ongoing debts and expenses exceeding income.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem
- F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedSep 17, 2014
- Answer filedOct 22, 2014
- Hearing heldJan 20, 2015Applicant did not object to the hearing date.
- Decision dateMar 6, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating a Meaningful Track Record of Financial Responsibility
- Consideration of the Whole-person Concept in Financial Cases