Summary
A 45-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $28,423 in unresolved delinquent debts. The Statement of Reasons detailed several specific debts, including $8,097 for a timeshare, $5,524 for a second mortgage, a largest debt of $3,766, and a smallest debt of $233.
The denial was based on the applicant's admission to most of these significant past-due debts, which raised concerns about financial irresponsibility, reliability, and trustworthiness. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were identified.
Despite the application of mitigating conditions AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(d), the clearance was denied because the applicant failed to provide any evidence of efforts to resolve or mitigate the financial issues over several years, nor did he submit documentation to support claims of improved financial status or responsible behavior.
Why the Applicant Was Denied
- The applicant admitted to significant delinquent debts totaling approximately $28,423, indicating financial irresponsibility.
- The applicant provided no evidence of efforts to resolve or mitigate his financial issues over several years.
- The applicant did not submit any documentation to support claims of improved financial status or responsible behavior.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties have persisted for several years without resolution.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of responsible actions taken to resolve debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThere is no evidence of any efforts made by the applicant to repay or negotiate debts.
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 issuedMar 29, 2015
- Answer filedMay 2, 2015Applicant requested a decision without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateApr 29, 2016
Cite For
- Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Efforts to Resolve Debts
- Impact of Unresolved Financial Issues on Security Clearance Eligibility