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Summary

The applicant, a 29-year-old federal contractor with a military background, faced security concerns under Guideline F due to unresolved financial delinquencies. Despite acknowledging his debts and attempting to make payments, he failed to provide sufficient evidence of responsible financial management or resolution of his debts, leading to the denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debts in SOR ¶ 1.a ($200) are medical debts. Applicant believed these debts are from one to four years old and were charges for both him and his family that were not covered by insurance. They are unpaid (1.a). The debts in SOR ¶ 1.b ($964) are medical debts. Applicant believed these debts are from one to four years old and were charges for both him and his family that were not covered by insurance. They are unpaid (1.b). The debts in SOR ¶ 1.c ($186) are medical debts. Applicant believed these debts are from one to four years old and were charges for both him and his family that were not covered by insurance. They are unpaid (1.c). The debts in SOR ¶ 1.d ($4,585) are credit card debts. Applicant testified he had these debts when he was discharged from the military. He thought his wife paid them. He was unaware of them until he was interviewed by a government investigator in February 2015. He did not provide proof that the debts are paid or resolved (1.d). The debts in SOR ¶ 1.e ($1,558) are credit card debts. Applicant testified he had these debts when he was discharged from the military. He thought his wife paid them. He was unaware of them until he was interviewed by a government investigator in February 2015. He did not provide proof that the debts are paid or resolved. His April 2016 credit shows that the account in SOR ¶ 1.e is in dispute (1.e). The debts in SOR ¶ 1.f ($1,218) are for appliances that were purchased in 2012. Applicant stopped making payments on the accounts in 2013 when he had car problems. He testified he paid the debts two or three months ago using a loan from his pension plan. He stated he would provide supporting documents to show the debts are paid. He did not (1.f). The debts in SOR ¶ 1.g ($1,025) are for appliances that were purchased in 2012. Applicant stopped making payments on the accounts in 2013 when he had car problems. He testified he paid the debts two or three months ago using a loan from his pension plan. He stated he would provide supporting documents to show the debts are paid. He did not (1.g). The debts in SOR ¶ 1.h ($14,418) are for a vehicle that was repossessed. Applicant testified that he made a payment arrangement with the collection company that holds the debt to pay $50 a month, and he has been making payments for at least a year. He stated that he gives his grandmother the money and she makes the payments. He does not know the current balance of the debt (1.h). The debts in SOR ¶ 1.i ($1,925) are unspecified. Applicant stated he does not recognize the debt in SOR ¶ 1.i. He indicated he attempted to contact the creditor, but was unsuccessful. He has not taken any other action to dispute or resolve the debt (1.i).

The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(c). The judge applied mitigating conditions F.20(b), F.20(e). The decision turned on the following: Applicant has numerous unpaid or unresolved debts, including medical and credit card debts; He failed to provide evidence of responsible actions taken to address his financial obligations; The applicant did not participate in financial counseling or demonstrate a reliable track record of resolving debts.

Why the Applicant Was Denied

• Applicant has numerous unpaid or unresolved debts, including medical and credit card debts.
• He failed to provide evidence of responsible actions taken to address his financial obligations.
• The applicant did not participate in financial counseling or demonstrate a reliable track record of resolving debts.

Conditions Referenced

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

• SOR issuedJun 13, 2016
• Answer filedJul 5, 2016
• Hearing heldDec 6, 2016Record held open until 12/20/2016 for additional evidence.
• Decision dateJan 23, 2017

Cite For

• Failure to Mitigate Financial Considerations Under Guideline F
• Importance of Providing Evidence of Debt Resolution
• Impact of Financial Irresponsibility on Security Clearance Eligibility