Summary
A 41-year-old married father of four was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial delinquencies. Despite a stable income exceeding $115,000 annually since 2005, the applicant faced allegations concerning multiple unpaid debts. These included a $1,878 debt, a $677 collection account, a charged-off credit card debt of approximately $1,834, and several other collection accounts ranging from $141 to approximately $597.
Additional allegations included a $206 medical debt, a $308 delinquent utility bill, a $400 credit card debt 120 days past due, and two bad debts of $4,460 and $1,468. The applicant also owed $118 to a municipal garbage collection facility and was 120 days past due on a home equity account with a $38,000 balance. Furthermore, after recurring monthly expenses, the applicant had a net negative remainder of approximately $1,450.
The denial was based on the applicant's failure to acknowledge responsibility for multiple debts, which raised concerns about his reliability and judgment. He did not demonstrate a proactive approach to resolving his financial issues, including not informing creditors of his improved financial situation, and had not received financial counseling.
Why the applicant was denied
- The applicant failed to acknowledge responsibility for multiple debts, which raised concerns about his reliability and judgment.
- He did not demonstrate a proactive approach to resolving his financial issues, including not informing creditors of his improved financial situation.
- The applicant has not received financial counseling, indicating a lack of understanding of his financial responsibilities.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's initial financial difficulties were due to unemployment, he did not act responsibly in addressing his debts once employed.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not initiate any efforts to repay his debts or inform creditors of his improved financial situation.
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 issuedNov 10, 2008
- Answer filedDec 5, 2008
- Hearing heldFeb 4, 2009Applicant testified pro se.
- Decision dateMar 2, 2009
Cite for
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Failure to Demonstrate a Proactive Approach to Financial Responsibilities
- Lack of Financial Counseling as a Factor in Security Clearance Decisions