Summary
The applicant, a 44-year-old defense contractor, faced security clearance denial under Guideline F (Financial Considerations) due to significant unresolved debts totaling approximately $55,975. Despite acknowledging some debts, the applicant failed to provide sufficient evidence of resolution or financial responsibility, leading to concerns about reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted that he was indebted for a past-due medical debt in the amount of $9,586. He stated in his e-QIP that this 2007 debt was concerning, “Medical bills from recent surgery and the recent job loss of my spouse.” He further stated, “Currently paying them down with installments.” (Item 3 at Section 26.) No further information was provided. This debt is not resolved (1.a). Applicant admitted that he was indebted for a past-due medical debt in the amount of $1,359. No further information was provided. This debt is not resolved (1.b). Applicant admitted that he was indebted for student loans in the amount of $45,030. However, he stated in his answer (Item 2), “I admit owing the stated amount. I deny that this account remains delinquent. The status is now current and up to date, with no missed or delinquent payments.” No further information was provided by Applicant. The most recent credit report in the record, dated July 15, 2015, shows at least one past-due student loan in the amount of $22,067. (Item 3 at 4.) Applicant did not present sufficient evidence to show this debt is being resolved (1.c).
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(d). The decision turned on the following: The applicant has over $55,000 in past-due debts, which have been due for several years; The applicant did not provide evidence of efforts to resolve his financial issues or submit a budget; The applicant's financial difficulties have not been mitigated, raising questions about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has over $55,000 in past-due debts, which have been due for several years.
- The applicant did not provide evidence of efforts to resolve his financial issues or submit a budget.
- The applicant's financial difficulties have not been mitigated, raising questions about his reliability and trustworthiness.
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 Infrequent, or Unlikely to RecurThe applicant's financial difficulties have been ongoing for several years.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of responsible actions taken to resolve debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not submit evidence supporting his claims of resolving debts.
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 issuedAug 1, 2015
- Answer filedAug 24, 2015Applicant requested a decision without a hearing.
- Hearing held—Decision made without a hearing.
- Decision dateSep 26, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Providing Evidence of Financial Responsibility
- Impact of Ongoing Financial Difficulties on Security Clearance Eligibility