Summary
The applicant, a 34-year-old refueler employed by a defense contractor, faced security concerns under Guideline F (Financial Considerations) due to numerous delinquent debts totaling approximately $27,297. Despite his honorable military service and current employment, the applicant failed to demonstrate responsible management of his financial obligations, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: car loan charged off in August 2012 for $7,175 (1.a). unsecured loan charged off in May 2010 for $3,121 (1.b). unsecured loan charged off in June 2010 for $2,692 (1.c). cellphone bill charged off in September 2013 for $870 (1.d). credit-card account charged off in November 2009 for $430 (1.e). telephone bill charged off in November 2010 for $430 (1.f). past-due debt for $35, for overpayment while on active duty (1.g). judgment filed in October 2010 for $10,701 (1.h). judgment filed in December 2012 for $1,064 (1.i). telecommunications debt for $263, placed for collection in March 2012 (1.j). collection account for $216 opened in July 2013 (1.k). speeding ticket placed for collection in August 2012 for $300 (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has numerous delinquent debts totaling approximately $27,297, indicating an inability to manage financial obligations; He did not take significant steps to resolve his debts or establish a financial plan after his divorce, which occurred over four years ago; The applicant's financial issues were not mitigated by any evidence of proactive measures to address his debts.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling approximately $27,297, indicating an inability to manage financial obligations.
- He did not take significant steps to resolve his debts or establish a financial plan after his divorce, which occurred over four years ago.
- The applicant's financial issues were not mitigated by any evidence of proactive measures to address his debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile some conditions were beyond his control, the applicant did not act responsibly toward his creditors.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant's financial issues are not under control, and he has not sought financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not taken significant active measures to resolve his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant admitted to the debts and provided no basis to dispute them.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedNov 26, 2014
- Answer filedDec 15, 2014
- Hearing heldApr 19, 2016
- Decision dateJul 26, 2016
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Proactive Measures to Resolve Delinquent Debts
- Impact of Personal Circumstances on Financial Management and Security Clearance Eligibility