Summary
A 41-year-old Department of Defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial instability. The applicant faced 15 delinquent accounts totaling approximately $30,254, which included multiple collection accounts, returned checks, charged-off debts, and state and federal tax liens dating back to 2001.
Specific allegations included a $555 medical account from May 2007, a $39 returned check from January 2007, and a $482 insurance account from January 2007. Earlier issues involved a $1,966 charged-off account from January 2006, a $7,543 charged-off automobile loan from June 2004, and federal tax liens of $5,125 from April 2003 and $12,196 from February 2001.
Despite some debts being resolved, the applicant's financial problems persisted, marked by unresolved obligations and a negative monthly balance. The denial was based on the applicant's inability to satisfy debts and a lack of sufficient evidence of recent financial counseling or a concrete plan to resolve outstanding financial issues.
Why the Applicant Was Denied
- The applicant had 15 delinquent accounts totaling approximately $30,254, indicating an inability to satisfy debts.
- The applicant's financial problems continued, with unresolved debts and a negative monthly balance.
- The applicant did not provide sufficient evidence of recent financial counseling or a plan to resolve outstanding debts.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedHistory of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant experienced job loss and a period of unemployment.
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made some payments towards certain 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 issuedFeb 8, 2008
- Answer filedApr 11, 2008
- Hearing heldAug 5, 2008Originally scheduled for July 9, 2008, but rescheduled at applicant's request.
- Decision dateSep 5, 2008
Cite For
- Financial Instability as a Disqualifying Factor Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Mitigating Conditions Related to Financial Difficulties