Summary
A 40-year-old equipment specialist and Desert Storm veteran was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant had 23 delinquent accounts totaling approximately $16,625. These included multiple medical debts, telephone and cable bills, mail order catalogue accounts, overdrawn checking accounts, and two automobile repossession deficiency balances. Additionally, two loans were charged off as bad debts.
The Statement of Reasons detailed these financial obligations, which spanned from June 2001 to August 2007. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, indicating a pattern of financial irresponsibility and an inability or unwillingness to satisfy debts. While mitigating conditions FC MC 20(b) and FC MC 20(d) were applied, acknowledging that some financial problems were caused by circumstances beyond the applicant's control and that the applicant had received financial counseling, these were insufficient to overcome the concerns.
The denial was based on the applicant's failure to establish a plan to resolve the delinquent accounts, despite being employed full-time since 2006. Although personal circumstances exacerbated his financial problems, the applicant continued to incur additional debts without taking responsible action to address them.
Why the Applicant Was Denied
- The applicant has 23 delinquent accounts totaling approximately $16,625, indicating financial irresponsibility.
- Despite being employed full-time since 2006, the applicant has not established a plan to resolve his delinquent accounts.
- The applicant's financial problems were exacerbated by personal circumstances, but he continued to incur additional debts without taking responsible action.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's medical issues, divorce, and custody battle contributed to his financial problems.
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made a good-faith effort to pay one specific debt, but this was insufficient to mitigate overall concerns.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 31, 2008
- Answer filedJan 23, 2009
- Hearing heldMar 4, 2009
- Decision dateApr 9, 2009
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Lack of a Repayment Plan as a Security Concern