Summary
The applicant, a 35-year-old manager for a defense contractor, faced security clearance denial under Guideline F due to significant financial irresponsibility, including multiple debts totaling approximately $19,570. Despite beginning a second job to address his debts, the judge found insufficient evidence of financial stability or a credible plan for debt resolution, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $7,190 in collection debt placed by phone companies (1.a). $354 in collection debt placed by a cable/Internet provider (1.b). charged-off debts totaling $11,012 (1.c). $7,500 car loan debt (1.d). $1,844 payday loan (1.e). $150 credit card debt (1.f). $1,948 cell phone debt (1.g). $1,652 wireless phone service collection debt (1.h). $1,460 wireless phone service collection debt (1.i). $1,322 wireless phone service collection debt (1.j). $793 debt (1.k). $624 fitness membership debt (1.l). $256 cellular phone collection debt (1.m). $195 cellular phone collection debt (1.n). $105 fitness membership debt (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant had multiple delinquent debts totaling approximately $19,570, indicating financial irresponsibility; The applicant's financial issues were ongoing, with insufficient evidence of a credible plan to resolve them; The applicant's recent efforts to improve his financial situation were deemed too early to conclude that his financial problems were resolved.
Why the Applicant Was Denied
- The applicant had multiple delinquent debts totaling approximately $19,570, indicating financial irresponsibility.
- The applicant's financial issues were ongoing, with insufficient evidence of a credible plan to resolve them.
- The applicant's recent efforts to improve his financial situation were deemed too early to conclude that his financial problems were resolved.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The security clearance adjudication is not aimed at collecting an applicant’s personal debts. Rather, it involves an evaluation of an applicant’s judgment, reliability, and trustworthiness in light of the security guidelines in the Directive.”
Procedural Posture
- SOR issuedFeb 26, 2016
- Answer filedMar 4, 2016
- Hearing heldMay 18, 2016Applicant waived right to 15 days advance notice.
- Decision dateJan 27, 2017
Cite For
- Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Debt Resolution Plans
- Evaluation of Judgment and Reliability in Security Clearance Decisions