Summary
The applicant, a 48-year-old defense contractor employee, sought to retain a SECRET security clearance under Guideline F concerning financial considerations. The applicant's financial difficulties stemmed from a history of unemployment and underemployment, leading to significant delinquent debts and a Chapter 7 bankruptcy in 1998. Despite being gainfully employed since 2003, the applicant failed to address his financial obligations, resulting in a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: automobile loan opened Jan. 2000 (1.a). $15,090 repossessed $14,073 “charged off” & transferred; unpaid (1.b). medical $63 to collection Sep. 2001; unpaid (1.c). credit card opened Sep. 2001 $1,982 $1,059 “charged off”; unpaid (1.d). credit card opened Feb. 2000 $1,455 $1,158 “charged off”; unpaid (1.e). credit card opened Dec. 2001 $1,964 “charged off”; unpaid (1.f). duplicate of 1.b. opened Dec. 2002 $12,145 transferred from other creditor; unpaid (1.g). home loan opened Apr. 1999 $194,341 foreclosed in 2002 (1.h). church child day care $402 to collection Feb. 2002; unpaid (1.i). medical $165 to collection Jan. 2006; unpaid (1.j). pay day cash advance collection agency $595 to collection Aug. 2006; unpaid (1.k). insurance $71 to collection Oct. 2002; unpaid (1.l). telephone bill $90 to collection Nov. 2005; unpaid (1.m). electric bill $389 to collection Jul. 2006; unpaid (1.n). apartment rent collection agency $6,993 to collection Dec. 2001; unpaid (1.o). duplicate of 1.o. $6,592 transferred from other creditor; unpaid (1.p). telephone bill collection agency $471 to collection Oct. 2005; unpaid (1.q). electric bill $470 to collection May 2007; unpaid (1.r). university collection agency $322 to collection Oct. 2001; unpaid (1.s). duplicate of 1.n. $319 transferred from other creditor Oct. 2001; unpaid (1.t). computer company bill collection agency $255 to collection Jun. 2007; unpaid (1.u). medical bill $240 to collection Apr. 2004; unpaid (1.v). medical bill $226 to collection Apr. 2003; unpaid (1.w). telephone bill collection agency $209 to collection Jan. 2004; disputed & unpaid (1.x). duplicate of 1.x. $188 to collection Nov. 2001, & transferred to other creditor; unpaid (1.y). gas bill collection agency $107 to collection Aug. 2003; unpaid (1.z). cable bill collection agency $51 to collection Sep. 2005; unpaid (1.aa). medical bill $50 to collection Aug. 2002; unpaid (1.bb).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant failed to demonstrate a willingness to address his delinquent debts despite having the financial means to do so; The applicant's inaction towards his financial obligations raised concerns about his reliability and trustworthiness; The applicant's decision to ignore debts until they fall off his credit report indicated a lack of good judgment.
Why the Applicant Was Denied
- The applicant failed to demonstrate a willingness to address his delinquent debts despite having the financial means to do so.
- The applicant's inaction towards his financial obligations raised concerns about his reliability and trustworthiness.
- The applicant's decision to ignore debts until they fall off his credit report indicated a lack of good judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's ongoing refusal to address financial delinquencies raised concerns about his current reliability.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant acted irresponsibly by not resolving debts despite being gainfully employed.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Indications That the Problem Is Being ResolvedThe applicant's budget counseling did not demonstrate a good-faith effort to resolve debts.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve DebtsThere was no credible evidence of a good-faith effort to repay overdue creditors.
Key Rule Quoted
“"A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence."”
Procedural Posture
- SOR issuedJan 22, 2008
- Answer filedJan 29, 2008
- Hearing heldMay 6, 2008
- Decision dateJun 24, 2008
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Financial Delinquencies on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts to Resolve Debts in Security Clearance Cases