Summary
The applicant, a 48-year-old information assurance analyst, faced security concerns under Guideline F (Financial Considerations) due to numerous delinquent debts totaling approximately $30,000. Despite some mitigating circumstances, the applicant's financial irresponsibility and failure to resolve debts led to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: judgments filed in 2015 for $3,096 (1.a). judgments filed in 2015 for $2,031 (1.b). judgments filed in 2015 for $1,707 (1.c). medical debt for $111 (1.d). department store debt, charged off for $1,023 (1.e). department store debt, charged off for $1,851 (1.f). credit-card accounts, placed for collection of $3,105 (1.g). credit-card accounts, placed for collection of $1,689 (1.h). credit-card accounts, placed for collection of $609 (1.i). credit-card accounts, placed for collection of $902 (1.j). mortgage loan in foreclosure for $241,400 (1.k). military credit-card account, charged off for $2,744 (1.l). department store debts, charged off for $3,104 (1.m). department store debts, charged off for $2,031 (1.n). debts charged off for $901 (1.o). debts charged off for $884 (1.p). furniture store account, charged off for $698 (1.q). credit-card account, placed for collection of $3,399 (1.r).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c), AG ¶ 20(e). The decision turned on the following: The applicant has numerous delinquent debts totaling about $30,000, indicating an inability to manage financial obligations; The applicant failed to provide evidence of efforts to resolve most of the debts or to seek financial counseling; The applicant's financial issues were primarily self-inflicted, stemming from a reduction in military pay and subsequent employment challenges.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling about $30,000, indicating an inability to manage financial obligations.
- The applicant failed to provide evidence of efforts to resolve most of the debts or to seek financial counseling.
- The applicant's financial issues were primarily self-inflicted, stemming from a reduction in military pay and subsequent employment challenges.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some conditions were beyond the applicant's control, the primary cause was self-inflicted.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsEstablished for the military credit card and mortgage loan, but not for other debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant has not sought or received financial counseling.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not investigate or dispute several debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedDec 9, 2015
- Answer filedMar 24, 2016
- Hearing heldJun 9, 2016
- Decision dateSep 21, 2016
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Self-inflicted Financial Issues on Security Clearance Eligibility
- Requirements for Demonstrating Mitigating Conditions in Financial Cases