Summary
A 55-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons detailed several allegations, including a credit card debt of $473 that was over 120 days past due, a collection account of $22,533 from a 2004 automobile repossession, and another collection account of $4,975 that was alleged in a 2006 Statement of Reasons issued by the Army. Additionally, there were delinquent accounts payable to creditors with similar names.
The decision cited Disqualifying Conditions 19(a) and 19(c). While Mitigating Conditions 20(a), 20(b), 20(c), 20(d), and 20(e) were considered, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's history of multiple delinquent accounts totaling approximately $35,000. The applicant failed to take action to resolve these debts after being notified of security concerns in 2006, and payments made did not significantly reduce the overall debt, with some amounts even increasing.
Why the Applicant Was Denied
- Applicant has a history of financial irresponsibility with multiple delinquent accounts totaling approximately $35,000.
- Applicant failed to take action to resolve his delinquent accounts after being notified of security concerns in 2006.
- Payments made by the applicant have not significantly reduced his debts, and some amounts owed have increased.
Conditions Referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- DC 19(c)raisedA History of Not Meeting Financial Obligations
- MC 20(a)rejectedThe Behavior Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and have not been resolved.
- MC 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were not due to circumstances beyond his control.
- MC 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant discontinued credit counseling services.
- MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's payment efforts have not significantly mitigated his debts.
- MC 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide evidence to support his dispute of one debt.
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 issuedJan 11, 2010
- Answer filedFeb 16, 2010Applicant requested a decision without a hearing.
- Hearing heldApr 13, 2010
- Decision dateJun 17, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Mitigate Financial Irresponsibility Despite Some Payments Made
- Impact of Past Financial Conduct on Current Security Clearance Eligibility