Summary
A 32-year-old defense contractor and former U.S. Navy service member was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from 11 delinquent debts totaling approximately $35,000. These included two credit card accounts, each for $7,525, a personal loan for $768, and seven collection accounts ranging from $447 to $5,000.
While the applicant acknowledged the debts and resolved one, he did not provide sufficient evidence to mitigate the security concern. The applicant's financial problems were largely beyond his control, but he failed to act responsibly under those circumstances by not addressing the remaining obligations.
Ultimately, the applicant did not meet the burden of persuasion for clearance eligibility, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant did not present sufficient evidence to mitigate the security concern stemming from his financial history.
- The applicant only resolved one of the eleven delinquent debts and provided no evidence of addressing the others.
- The applicant's financial problems were largely beyond his control, but he failed to act responsibly under those circumstances.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's financial problems stemmed from his involuntary discharge from the Navy and subsequent family medical issues.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not demonstrate that the majority of his debts were being addressed.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant only resolved one debt and did not show efforts to address the others.
Key Rule Quoted
“A security clearance adjudication is not a proceeding aimed at collecting an applicant's debts. Rather, it is a proceeding aimed at evaluating an applicant's judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedFeb 24, 2016
- Answer filedMar 18, 2016Requested decision based on written record without a hearing.
- Hearing held—No hearing; decision based on written record.
- Decision dateApr 26, 2017
Cite For
- Evaluation of Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Circumstances Beyond an Applicant's Control in Financial Matters