Summary
A 29-year-old defense contractor, with a high school diploma and one year of college, was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts totaling approximately $26,000. Despite consistent employment since 2011, the applicant failed to responsibly address these financial obligations.
The Statement of Reasons detailed nine delinquent accounts. These included a repossessed vehicle debt of approximately $23,157, multiple collection accounts for credit cards, cell phone bills, cable services, an overdraft fee, and a power bill, ranging from approximately $137 to $1,055. The applicant admitted to seven of these debts, with some having fallen off his credit report without payment.
The denial was based on the applicant's admitted delinquent debts, his failure to resolve them, and his poor judgment, exemplified by his belief that he could purchase a house despite these outstanding financial issues. Disqualifying conditions under AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c) were raised, while mitigating condition AG ¶ 20(b) was applied.
Why the Applicant Was Denied
- The applicant admitted to having seven delinquent debts totaling approximately $26,000, demonstrating a lack of financial responsibility.
- The applicant failed to take action to resolve his debts, allowing them to fall off his credit report without payment.
- The applicant's belief that he could purchase a house despite unresolved debts indicated poor judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not demonstrate that his financial problems were largely beyond his control or that he acted responsibly.
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedJul 8, 2016
- Answer filedOct 6, 2016
- Hearing heldJan 18, 2017convened as scheduled
- Decision dateJul 5, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Responsible Financial Behavior as a Disqualifying Factor
- Irrational Belief Regarding Financial Eligibility Impacting Security Clearance Decision