Summary
The applicant, a 44-year-old retired Army major, faced security concerns under Guideline F due to unresolved financial issues, including multiple charged-off credit card debts and a delinquent loan. Despite some claims of payments and mitigating circumstances related to his divorce, the judge found insufficient evidence to support his financial responsibility, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant opened a credit-card account in 1999. The creditor closed the account in 2011 and reported it as charged off in the amount of $16,612 (1.b). Applicant opened another credit-card account in 1999. It was closed in 2009, and the original creditor charged off the account. Another creditor purchased the debt and placed the account for collection in the amount of $14,678 (1.c). Applicant opened a credit-card account in 1996. It was closed in 2009, and the creditor charged it off in the amount of $5,471 (1.d). Applicant opened a credit-card account in 2009. It was closed in 2013, and the creditor charged off the account in the amount of $3,673 (1.e). Applicant opened a credit-card account in 1994. It was closed in 2009, and the creditor charged off the account in the amount of $2,643 (1.f). Applicant opened a credit-card account in 1995. It was closed in 2014, and the creditor charged off the account in the amount of $1,065 (1.g). Applicant opened another credit-card account in 1994. It was closed in 2009, and the creditor charged off the account in the amount of $1,035 (1.h). Applicant opened a credit-card account in 2015. It was closed in 2016, and the creditor charged off the account in the amount of $795 (1.i). Applicant owes $645 for a loan account that the creditor placed for collection (1.j). Applicant opened an electric-utility account in 2009 and closed it in 2011. The creditor sent the account to collections in the amount of $318 (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant has multiple unresolved debts, including charged-off credit cards and a delinquent loan; The applicant failed to provide sufficient evidence of financial responsibility or intent to resolve debts; The applicant did not receive financial counseling, and his financial problems remain unresolved over eight years after his divorce.
Why the Applicant Was Denied
- The applicant has multiple unresolved debts, including charged-off credit cards and a delinquent loan.
- The applicant failed to provide sufficient evidence of financial responsibility or intent to resolve debts.
- The applicant did not receive financial counseling, and his financial problems remain unresolved over eight years after his divorce.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
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 filedJul 12, 2016
- Hearing held—Decision made on the record without a hearing.
- Decision dateJan 27, 2017
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations in Security Clearance Cases