Summary
A 41-year-old naturalized U.S. citizen and project manager was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from unresolved financial delinquencies totaling $9,784, specifically a $1,582 judgment from 2008 and an $8,202 credit card collection debt. These issues raised concerns under Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).
While the applicant opened new credit accounts and maintained timely payments on them, this was not sufficient to mitigate the existing concerns. The applicant admitted to the outstanding judgment and collection debts but failed to provide evidence of their resolution.
Despite being notified of the security concerns, the applicant did not take significant actions to address the debts. The explanation provided for this inaction was deemed insufficient, leading to doubts about the applicant's reliability and judgment. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- Applicant admitted to owing a $1,582 judgment debt and an $8,202 collection debt without providing evidence of resolution.
- Applicant failed to take significant actions to address the debts after being notified of the security concerns.
- The applicant's explanation for inaction was deemed insufficient, raising doubts about his reliability and 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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not act responsibly by ignoring the judgment debt.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Resolved or Is Under ControlNo evidence of counseling or resolution of debts was presented.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not demonstrate a good-faith effort to address the debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtNo evidence was provided to dispute the debts.
Key Rule Quoted
“The security clearance adjudication is not aimed at collecting an applicant’s personal debts. Rather, it involves an evaluation of an applicant’s judgment, reliability, and trustworthiness in light of the security guidelines in the Directive.”
Procedural Posture
- SOR issuedDec 7, 2015
- Answer filedMar 8, 2016
- Hearing heldSep 29, 2016
- Decision dateMay 25, 2017
Cite For
- Evaluation of Financial Delinquencies Under Guideline F
- Importance of Demonstrating Good-faith Efforts to Resolve Debts
- Consideration of the Whole-person Concept in Security Clearance Decisions