Summary
A 48-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved delinquent debts totaling over $57,000. The applicant admitted to four specific debts, all originating around 2007, which remained unresolved at the time of the decision.
These debts included a bank debt of $16,575, a credit card debt of $3,001, another bank debt of $12,942, and a credit card debt to a collection agent for $24,731. The applicant attributed some of these delinquencies to a $4,000 annual salary cut, noting that attempts to renegotiate payment plans were unsuccessful or that full payment was demanded. For one debt, a collection agency offered a discounted lump sum payment of $3,500-$4,000, which the applicant stated he was financially unable to pay.
The denial was based on the applicant's admission of these substantial, long-standing debts and a lack of evidence demonstrating any efforts to resolve them or seek financial counseling. The judge concluded that the applicant failed to mitigate these financial concerns, raising questions about his reliability and trustworthiness, and that his financial difficulties showed no signs of being under control.
Why the Applicant Was Denied
- The applicant admitted to over $57,000 in delinquent debts, which have remained unresolved since 2007.
- The applicant did not provide evidence of any attempts to resolve his financial issues or seek financial counseling.
- The applicant's financial difficulties were ongoing and did not demonstrate any signs of being under control.
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 RecurThe applicant's financial difficulties have been ongoing since 2007.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide evidence of responsible actions taken to address his debts.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not show any attempts to resolve his debts since 2007.
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 issuedJul 31, 2015
- Answer filedAug 29, 2015Applicant requested a decision without a hearing.
- Decision dateNov 9, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Efforts to Mitigate Financial Problems
- Consideration of the Whole-person Concept in Security Clearance Decisions