Summary
The applicant, a 37-year-old federal contractor, faced security concerns under Guideline F due to multiple delinquent debts totaling over $19,000. Despite attributing his financial difficulties to a past period of unemployment, he failed to demonstrate responsible actions to resolve his debts, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt in SOR ¶ 1.a ($9,199) is the deficiency amount for a repossessed vehicle (1.a). The debt in SOR ¶ 1.b ($1,003) is a credit card debt that was defaulted on in 2012 or 2013 (1.b). Applicant testified that he resolved the debt in SOR ¶ 1.c ($398) for a delinquent cable bill, which he disputed, and it was removed from his credit report (1.c). He stated that he paid the debt in SOR ¶ 1.d (medical $182), but did not provide supporting documents (1.d). The debt in SOR ¶ 1.e ($8,734) is a car repossession deficiency debt that is unpaid and unresolved (1.e). The debt in SOR ¶ 1.f ($666) is a credit card debt. Applicant has not contracted the creditor, and the debt is unpaid and unresolved (1.f). Applicant indicated this debt is a duplicate of SOR ¶ 1.b (1.g).
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(c). The decision turned on the following: Applicant failed to provide evidence of resolving delinquent debts; Applicant admitted to not intending to pay the debts and disputed them without substantiation; Applicant did not take action to address his financial issues until after receiving the SOR.
Why the Applicant Was Denied
- Applicant failed to provide evidence of resolving delinquent debts.
- Applicant admitted to not intending to pay the debts and disputed them without substantiation.
- Applicant did not take action to address his financial issues until after receiving the SOR.
Conditions Referenced
- F.19(a)appliedInability or Unwillingness to Satisfy Debts
- F.19(c)appliedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant experienced a period of unemployment.
- F.20(c)appliedReceived or Is Receiving Counseling for the ProblemApplicant received financial counseling from a credit repair company.
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 issuedJun 10, 2016
- Answer filedJun 28, 2016
- Hearing heldFeb 28, 2017
- Decision dateMar 23, 2017
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Demonstrating Responsible Actions to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility