Summary
The applicant, a 31-year-old aircraft worker, faced security clearance denial under Guideline F due to over $40,000 in delinquent debt to nine creditors. Despite resolving one account, the judge found insufficient evidence of financial responsibility or good-faith efforts to address the remaining debts, leading to a denial of eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $470 represents a line of credit. The last action taken on the account was in March 2008. The account was transferred for collection in February 2013. Unresolved (1.a). $9,213 represents a loan. The last action on the delinquent account was in April 2008. On April 25, 2013, the collection agency for the original creditor thanked Applicant by letter for his last payment of $1,300. The agency considered the account as paid-in-full with a zero balance. Resolved (1.b). $383 represents an unknown finance loan. The last activity on the delinquent account was September 2007. Unresolved (1.c). $16,829 represents a loan that was transferred to a collection agency. The last activity on the delinquent account was November 2007. Unresolved (1.d). $200 represents an unknown account that was transferred to the same collection agency between July 2010 and April 2012. Unresolved (1.e). $300 represents an unknown account that was transferred to the same collection agency between July 2010 and April 2012. Unresolved (1.f). $205 represents an unknown account that was transferred to the same collection agency between July 2010 and April 2012. Unresolved (1.g). $100 represents an unknown account that was transferred to the same collection agency between July 2010 and April 2012. Unresolved (1.h). $12,483 represents an installment auto loan that was opened in December 2004. The last activity on the account was July 2007. The car was repossessed by the credit union. Unresolved (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant accumulated over $40,000 in delinquent debt to nine creditors; Only one of the nine delinquent accounts was resolved, which was insufficient to mitigate concerns; Applicant did not provide evidence of good-faith efforts to repay or resolve the majority of his debts.
Why the Applicant Was Denied
- Applicant accumulated over $40,000 in delinquent debt to nine creditors.
- Only one of the nine delinquent accounts was resolved, which was insufficient to mitigate concerns.
- Applicant did not provide evidence of good-faith efforts to repay or resolve the majority of his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant did not provide specific evidence of financial counseling.
- AG ¶ 20(d)rejectedA Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsReliance on the statute of limitations does not constitute a good-faith effort.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide a reasonable basis or documented proof to dispute the debts.
Key Rule Quoted
“The applicant has the ultimate burden of persuasion of establishing that it is clearly consistent with the national interest to grant him a security clearance.”
Procedural Posture
- SOR issuedSep 5, 2014
- Answer filedJan 8, 2015Applicant requested decision on the record.
- Hearing held—No hearing; case decided on the record.
- Decision dateJan 8, 2015
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Good-faith Efforts to Resolve Debts Not Established
- Impact of Unresolved Delinquent Debts on Security Clearance Eligibility