Summary
The applicant, a 43-year-old federal contractor, faced security clearance denial under Guideline F due to approximately $11,700 in unresolved delinquent debts and an unpaid judgment. The judge found that the applicant failed to demonstrate control over his financial difficulties, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant denied owing $8,024 for an unpaid judgment to a credit union (CU). In his e-QIP Applicant admitted the existence of a debt to this creditor for an automobile that was repossessed in 2011, and that he still owed approximately $14,000. Applicant stated that the reason he was unable to pay this debt was because, “I lost my job.” The most recent credit report in the record, and court records, indicate that this judgment was satisfied in April 2015 (1.a). Applicant admitted owing $2,031 to a creditor for a past-due debt. No other information was provided. This debt is not resolved (1.b). Applicant admitted owing $1,468 to a creditor for a past-due debt. No other information was provided. This debt is not resolved (1.c). Applicant admitted owing $482 to a creditor for a past-due medical debt. No other information was provided. This debt is not resolved (1.d). Applicant admitted owing $347 to a creditor for a past-due debt. No other information was provided. This debt is not resolved (1.e). Applicant denied owing $300 to CU for a past-due debt. The most current credit report in the record shows that all accounts with CU are either current, satisfied judgments, or paid charge-offs. I find that this debt has been resolved (1.f). Applicant admitted owing $158 to a creditor for a past-due debt. No other information was provided. This debt is not resolved (1.g). Applicant denied owing a judgment to a financial company in the amount of $6,279. The most recent credit report in the record, and court records, show that this judgment has not been paid. The debt is not resolved (1.h). Applicant denied owing $3,064 to CU for a past-due debt. The most recent credit report in the record shows that all accounts with CU are either current, satisfied judgments, or paid charge-offs. I find that this debt has been resolved (1.i). Applicant admitted owing $171 to a cable company for a past-due debt. No further information was provided. This debt is not resolved (1.j). Applicant admitted owing $812 to a cable company for a past-due debt. No further information was provided. This debt is not resolved (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: Applicant owes approximately $11,700 in delinquent debts and an unpaid judgment, which he has not repaid or resolved; Applicant did not provide evidence of financial counseling or a plan to address his debts; The applicant's financial problems were not shown to be under control, raising concerns about his reliability.
Why the Applicant Was Denied
- Applicant owes approximately $11,700 in delinquent debts and an unpaid judgment, which he has not repaid or resolved.
- Applicant did not provide evidence of financial counseling or a plan to address his debts.
- The applicant's financial problems were not shown to be under control, raising concerns about his reliability.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedSep 21, 2015
- Answer filedFeb 1, 2016Applicant requested a decision on the written record without a hearing.
- Hearing held—No hearing was held.
- Decision dateOct 12, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Financial Responsibility as a Basis for Security Clearance Denial
- Importance of Providing Evidence of Financial Stability in Security Clearance Cases