Summary
The applicant, a 57-year-old defense contractor, faced security clearance denial under Guideline F due to approximately $21,464 in delinquent debts, primarily incurred with the knowledge of his ex-partner. The judge found that the applicant had not resolved any of the past-due accounts, leading to a determination that financial concerns were not fully mitigated.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $705 collection debt Individual revolving charge opened Feb. 2002, last activity Aug. 2012; $705 charged off Jan. 2014. Contacted lender in 2014 and 2015; denies opened account; admits liability for repayment; no payments as of Aug. 2015 (1.a). $466 collection debt $454 credit card account delinquent Apr. 2012; for collection Nov. 2012; $466 balance Jul. 2015. Contacted lender in May 2015, debt with new collection agency; believes ex-partner opened account without his knowledge; admits repayment liability; no payments as of Aug. 2015 (1.b). $552 collection debt $552 medical debt delinquent May 2013; for collection Sep. 2013; unpaid as of Nov. 2013. Admits debt; no payments as of Aug. 2015 (1.c). $1,490 past-due loan Joint $28,050 vehicle loan opened Apr. 2009; $596 monthly payment; first delinquent Jan. 2013; 60 days past due for $1,490 on $16,570 balance as of Jan. 2014; car sold at auction, $3,102 charged off; $3,059 balance as of Jul. 2015. Disputes balance, admits repossession; no payments as of Aug. 2015 (1.d). $6,078 collection debt $4,713 high credit delinquent as of Jul. 2011; purchased by collection agency Sep. 2012; $6,078 balance reported Jan. 2014, $4,713 balance reported Aug. 2015. No knowledge of debt; no payments as of Aug. 2015 (1.e). $5,422 collection debt Individual installment loan opened Jun. 2010; last payment Apr. 2011; first delinquent Jun. 2011, $5,422 charged off Sep. 2011. Denies took out loan; no knowledge of debt; no payments as of Aug. 2015 (1.f). $3,320 collection debt Individual revolving charge opened May 2010; first delinquent Nov. 2011; $3,320 charged off Dec. 2013; unpaid as of Aug. 2015. Denies opened credit card account; no knowledge of debt; no payments as of Aug. 2015 (1.g). $4,603 collection debt Joint auto loan opened Mar. 2011, $451 monthly payments; first delinquency Mar. 2013; $6,341 charged off Jul. 2013; $4,603 reported balance as of Dec. 2013; $3,227 reported balance as of Jul. 2015. Admits fell behind on payments; car repossessed; no payments as of Aug. 2015 (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant has approximately $21,464 in delinquent debt, with some debts incurred knowingly; The applicant has not taken affirmative steps to challenge his liability for repayment of debts; The applicant has not resolved any of the past-due accounts.
Why the Applicant Was Denied
- The applicant has approximately $21,464 in delinquent debt, with some debts incurred knowingly.
- The applicant has not taken affirmative steps to challenge his liability for repayment of debts.
- The applicant has not resolved any of the past-due accounts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
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 issuedApr 1, 2015
- Answer filedApr 27, 2015
- Hearing heldAug 18, 2015Applicant elected to proceed without a witness.
- Decision dateJan 14, 2016
Cite For
- Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance
- Consideration of Debts Incurred by Cohabitant in Security Clearance Decisions