Summary
A 35-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts exceeding $40,000. The applicant acknowledged several past-due credit card debts, including one for $10,100 and another for $4,958, for which he claimed to be making monthly payments but provided no supporting documentation. He also admitted to an $18,591 judgment from a bank dating back to approximately 2009, which he attributed to job loss. While he asserted this judgment was related to one of the credit card debts and that payments had reduced the amount, he failed to provide evidence to substantiate this claim.
Additionally, the applicant had a past-due debt of $147, which he stated would be paid by the end of 2015, but no further information was provided. One debt of $6,276 was found to be resolved, as it was listed as a "paid collection."
The denial was based on the applicant's substantial unresolved debts, which indicated financial irresponsibility. He failed to provide evidence of mitigation efforts since 2009, and the judge was unable to assess his credibility due to his decision to proceed without a hearing.
Why the Applicant Was Denied
- Applicant has over $40,000 in unresolved debts, indicating financial irresponsibility.
- Applicant did not provide evidence of efforts to mitigate his financial issues since 2009.
- The judge could not evaluate the applicant's credibility due to his choice for a decision without a hearing.
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 so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial difficulties have persisted for several years.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not provide evidence of responsible actions taken to address his debts.
- AG ¶ 20(d)rejectedIndividual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant's statements lacked supporting documentation.
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 issuedFeb 5, 2015
- Answer filedApr 24, 2015Applicant requested a decision without a hearing.
- Hearing held—Decision made without a hearing.
- Decision dateNov 30, 2016
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Debt Mitigation Efforts
- The Importance of Supporting Documentation in Financial Cases