Summary
A 33-year-old software engineer was denied a security clearance under Guideline F, Financial Considerations, due to a history of financial difficulties. The Statement of Reasons (SOR) detailed several allegations, including a $7,484 past-due tuition fee from March 2009, an $8,930 charged-off credit card account, and a $12,986 debt from a repossessed vehicle. Other debts included a $578 electric bill, a $53 returned check debt, and a $538 collection account. Additionally, two state higher education accounts totaling $689 and $459 were placed for collection. The applicant denied a $665 hobby store debt and asserted a $1,810 credit card debt was settled in 1997.
The denial was based on the applicant having six unpaid accounts totaling approximately $31,000. While some debts were addressed, the applicant did not provide sufficient documentation of efforts to resolve his financial issues.
The decision concluded that the applicant's financial problems demonstrated a lack of self-control and poor judgment, leading to concerns about his reliability and trustworthiness. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were applied.
Why the Applicant Was Denied
- Applicant has six unpaid accounts totaling about $31,000.
- Applicant failed to provide documentation showing sufficient progress on resolving his debts.
- The applicant's financial problems indicate a lack of self-control and poor judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlApplicant was unemployed for several periods, but has been employed full-time since October 2008.
- AG ¶ 20(d)appliedDebt Has Been Paid or Is Being AddressedTwo state higher education loans and a returned check collection account have been paid.
- AG ¶ 20(e)appliedDebt Disputed and Removed From Credit ReportThe $1,810 credit card debt was deleted from the applicant's credit report.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances to meet his financial obligations.”
Procedural Posture
- SOR issuedSep 24, 2009
- Answer filedNov 18, 2009
- Hearing heldJun 28, 2010DOHA issued a Notice of Hearing on June 7, 2010.
- Decision dateSep 29, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Providing Documentation to Mitigate Financial Concerns
- Impact of Financial Irresponsibility on Security Clearance Eligibility