Summary
A 44-year-old logistics management specialist, employed by a Department of Defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed eight specific delinquent accounts, including credit cards charged off between 2002 and 2006, accounts placed for collection between 2002 and 2008, and a $15,045 debt from a voluntary car repossession in 2003. The total amount of these alleged debts was approximately $66,454.
While some debts were resolved, the applicant still had approximately $38,546 in unresolved delinquent debt at the close of the record. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, indicating a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. Mitigating conditions FC MC 20(b) and FC MC 20(d) were applied, acknowledging some efforts to resolve debts and that the issues were not recent.
However, the denial was based on the applicant's poor financial management decisions, such as prioritizing 401(k) contributions over debt resolution, and a lack of good-faith effort to resolve delinquent accounts, instead waiting for them to expire from his credit report. These factors raised concerns about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a significant amount of unresolved delinquent debt totaling approximately $38,546 at the close of the record.
- The applicant's financial issues were exacerbated by poor financial management decisions, including prioritizing contributions to a 401(k) over debt resolution.
- The applicant did not demonstrate a good-faith effort to resolve his delinquent accounts, opting instead to wait for them to drop off his credit report.
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's wife's job loss and health issues contributed to financial difficulties.
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant resolved some debts, but many remain unresolved.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 2, 2008
- Answer filedAug 3, 2008
- Hearing heldMar 4, 2009Record held open until March 18, 2009.
- Decision dateMar 31, 2009
Cite For
- Financial Management and Reliability Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Mitigating Factors in Financial Issues