Summary
A 48-year-old network system administrator, employed by a defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to significant financial delinquencies. The Statement of Reasons detailed eight collection accounts totaling over $61,000. These included three credit card accounts with balances of $1,772, $1,653, and $7,526, respectively, and another credit card collection account for $33,374.
Additional debts comprised a personal loan account for $16,496, a telephone service collection account for $268, and a cable bill in collection for $242. The disqualifying conditions cited were AG ¶ 19(a) and AG ¶ 19(c).
Despite the applicant acknowledging his debts and stating an intent to resolve them, no evidence of payments or financial counseling was provided. Consequently, the mitigating conditions (AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e)) were not found to apply, as the applicant failed to demonstrate a good-faith effort to resolve his financial obligations. The security clearance was therefore denied.
Why the Applicant Was Denied
- Applicant is delinquent on eight collection accounts totaling over $61,000.
- No payments have been made on the debts, and no evidence of financial counseling was provided.
- Applicant failed to demonstrate a good-faith effort to resolve his financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness 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 RecurDelinquent debts remain unpaid and are considered recent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant failed to document how past events affect his current finances.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsApplicant has not documented any payments on delinquent accounts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant admitted the obligations and is not disputing them.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedFeb 27, 2015
- Answer filedApr 2, 2015Applicant elected to have the matter decided without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateJan 12, 2016
Cite For
- Financial Considerations Security Concerns Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility