Summary
The applicant, a 66-year-old defense contractor with a history of financial difficulties, faced security concerns under Guideline F due to multiple delinquent debts totaling approximately $13,920. Despite claiming medical issues and unemployment as contributing factors, the applicant failed to provide sufficient evidence of efforts to resolve these debts, leading to a denial of security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a (consumer charged-off account $4,992): Applicant admitted this was an account he opened, but he claimed he cancelled his membership. No documentation was provided. The date of last activity was September 2008. This debt is unresolved (1.a). SOR ¶ 1.b (delinquent mortgage $7,528): Applicant’s July 2015 credit report shows a balance owed of $181,511 on this mortgage and a past-due amount of $7,528. The date of last activity was February 2015. Applicant failed to provide documentation showing contact with the creditor, refinancing plans, or payment. This debt is unresolved (1.b). SOR ¶ 1.c (collection accounts for $529): Applicant claims he is working with a collection agency to resolve these collection accounts. He did not provide documentation showing contact with the collection service or any attempt to pay or settle these debts. These debts are unresolved (1.c). SOR ¶ 1.d (collection accounts for $445): Applicant claims he is working with a collection agency to resolve these collection accounts. He did not provide documentation showing contact with the collection service or any attempt to pay or settle these debts. These debts are unresolved (1.d). SOR ¶ 1.e (collection accounts for $244): Applicant claims he is working with a collection agency to resolve these collection accounts. He did not provide documentation showing contact with the collection service or any attempt to pay or settle these debts. These debts are unresolved (1.e). SOR ¶ 1.f (collection accounts for $77): Applicant claims he is working with a collection agency to resolve these collection accounts. He did not provide documentation showing contact with the collection service or any attempt to pay or settle these debts. These debts are unresolved (1.f). SOR ¶ 1.g (collection accounts for $54): Applicant claims he is working with a collection agency to resolve these collection accounts. He did not provide documentation showing contact with the collection service or any attempt to pay or settle these debts. These debts are unresolved (1.g). SOR ¶ 1.h (collection accounts for $51): Applicant claims he is working with a collection agency to resolve these collection accounts. He did not provide documentation showing contact with the collection service or any attempt to pay or settle these debts. These debts are unresolved (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(a), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant has multiple unresolved delinquent debts totaling approximately $13,920; Applicant did not provide documentation showing efforts to contact creditors or resolve debts; There is no evidence of financial counseling or a budget provided by the applicant.
Why the Applicant Was Denied
- Applicant has multiple unresolved delinquent debts totaling approximately $13,920.
- Applicant did not provide documentation showing efforts to contact creditors or resolve debts.
- There is no evidence of financial counseling or a budget provided by the applicant.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant experienced medical difficulties and unemployment.
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(c)rejectedReceived Counseling for the Problem
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Creditors
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 issuedFeb 24, 2016
- Answer filedMar 16, 2016
- Hearing held—Decided on the written record.
- Decision dateFeb 17, 2017
Cite For
- Failure to Provide Evidence of Financial Stability Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Medical Issues as Mitigating Factors in Financial Cases