Summary
A 58-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to five delinquent debts totaling approximately $18,500. The Statement of Reasons (SOR) detailed a past-due mortgage of $14,135, which was foreclosed in June 2013 and sold in August 2013, with the applicant later informed the account was closed and no money was owed. However, four other debts remained unresolved: a $1,457 credit card last paid in December 2006, an $1,180 cell phone debt last paid in December 2007, a $1,045 cell phone debt last paid in December 2006, and a $700 credit card last paid in November 2006, which the applicant did not recall.
Disqualifying conditions included AG ¶ 19(a) and AG ¶ 19(c), while mitigating conditions AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered.
The denial was based on the applicant's failure to provide evidence of financial counseling or a plan to address the four outstanding debts. The decision noted that these unresolved debts indicated ongoing financial irresponsibility, and the applicant did not demonstrate that his financial issues were under control or that he had made a good-faith effort to repay his creditors.
Why the Applicant Was Denied
- The applicant did not provide evidence of financial counseling or a plan to address his delinquent debts.
- Four of the five debts remained unresolved, indicating ongoing financial irresponsibility.
- The applicant failed to demonstrate that his financial issues were under control or that he had made a good-faith effort to repay creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to establish that he made a good-faith effort to resolve his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed one debt but provided no substantiating documentation.
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 issuedDec 9, 2015
- Answer filedApr 6, 2016Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateMay 25, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Insufficient Evidence of Mitigation for Financial Delinquencies