Summary
A 50-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant delinquent debts totaling $21,590. The Statement of Reasons alleged a lengthy history of unresolved debt, raising disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c).
While the applicant admitted responsibility for the debts and expressed an intent to repay them, he provided no evidence of repayment progress. The judge noted that his financial problems were ongoing and that he had made no effective effort to voluntarily address any of the listed debts.
Although mitigating conditions AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, the judge found insufficient evidence of responsible financial management or concrete steps toward resolving the outstanding obligations. Consequently, the security clearance application was denied.
Why the Applicant Was Denied
- Applicant has a lengthy history of significant delinquent debt that he continues to be unable or unwilling to resolve.
- He admitted that all of the delinquent debts alleged in the SOR were valid debts that he was responsible for and intended to repay, but provided no evidence of repayment progress.
- His financial problems are ongoing, and he made no effective effort to voluntarily address any of his SOR-listed debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemApplicant participated in one online financial counseling course, but subsequent inaction demonstrated that his financial problems are not under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant's only payments toward his delinquent debts resulted from involuntary wage garnishment actions.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtHe did not provide any reasonable basis to dispute the legitimacy of the SOR-alleged debts.
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 issuedMar 12, 2016
- Answer filedApr 21, 2016
- Hearing heldAug 15, 2016Record left open until 08/29/2016 for additional evidence.
- Decision dateMar 1, 2017
Cite For
- Denial of Security Clearance Due to Ongoing Financial Irresponsibility
- Insufficient Evidence of Debt Resolution Efforts Under Guideline F
- Impact of Financial Issues on Reliability and Trustworthiness for Security Clearance