Summary
A 37-year-old defense contractor and former U.S. Army service member was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from 13 delinquent debts totaling over $12,000, which included various collection accounts for telephone, satellite television, utility, and other services, as well as several charged-off debts. These issues raised disqualifying conditions related to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
The applicant acknowledged the debts and stated he had initiated a repayment plan. However, he failed to provide evidence of payments or demonstrate that his financial issues were under control. While mitigating conditions were considered, such as the debts not being recent or the applicant having initiated a good-faith effort to resolve them, these were not sufficient.
Ultimately, the applicant's financial problems were deemed too recent and significant to satisfy the mitigating conditions. The decision concluded that granting a security clearance was not consistent with national interest, leading to the denial.
Why the Applicant Was Denied
- Applicant admitted to owing 13 delinquent debts totaling over $12,000, indicating a history of financial mismanagement.
- The applicant failed to provide evidence of payments on his debts or demonstrate that his financial issues were under control.
- The applicant's financial problems were too recent and significant to satisfy mitigating conditions.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial problems were too recent.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlNo evidence of unexpected expenses or factors negating financial mismanagement.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsNo proof of payments made under the debt repayment plan.
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 issuedMar 16, 2008
- Answer filedApr 10, 2008Applicant requested a decision without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateSep 25, 2008
Cite For
- Financial Mismanagement Under Guideline F
- Criteria for Evaluating Financial Responsibility
- Impact of Recent Financial Issues on Security Clearance Eligibility