Summary
A 38-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant admitted to owing two significant debts: approximately $11,982 to the Defense Finance and Accounting Service (DFAS) and $575 to a collection agency for a past-due account. While the applicant disputed the collection agency debt and was awaiting information, neither debt was resolved at the time of the decision.
The judge determined that the applicant's financial irresponsibility was recent and voluntary. Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
Despite the consideration of several mitigating conditions, the applicant failed to provide evidence of any payment arrangements or efforts to resolve his debts. Furthermore, he did not submit character references or evidence of good judgment. Consequently, the judge found substantial doubts about the applicant's reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to owing two significant debts, which were unresolved at the time of the decision.
- The applicant did not provide evidence of any payment arrangements or efforts to resolve his debts.
- The applicant failed to submit any character references or evidence of good judgment.
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 Long Ago or InfrequentlyThe applicant's financial irresponsibility was recent and voluntary.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial issues were a result of his voluntary decision to leave the National Guard.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate any efforts to resolve his debts.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThe applicant's financial situation was not stable and unresolved.
- AG ¶ 20(e)rejectedDisputed DebtsThe applicant did not provide evidence to support his dispute of the 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 issuedSep 30, 2015
- Answer filedJan 15, 2016Date on Answer is likely erroneous.
- Hearing held—Applicant requested decision on the written record.
- Decision dateMay 31, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Good-faith Efforts to Resolve Debts
- Consideration of the Whole-person Concept in Security Clearance Evaluations