Summary
The applicant, a 37-year-old network administrator with a history of financial difficulties, faced security concerns under Guideline F due to substantial delinquent debts totaling over $62,000. Despite having a good income, he failed to demonstrate any efforts to resolve these debts or submit a repayment plan, leading to the denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A department store credit card balance for $568 (1.b). A credit card debt for $3,038 (1.c). $607 owed on a credit card (1.d). Applicant owes $7,112 on a credit card (1.e). A debt on a credit card for $5,669 (1.f). Applicant owes $8 for parking tickets (1.g). Applicant owes $87 for parking tickets (1.h). Applicant owes $71 for medical treatments (1.i). Applicant owes $1,674 for medical treatments (1.j). Applicant owes $16,682 for a repossessed vehicle (1.k). Applicant owes $19,753 for a repossessed vehicle (1.l). Applicant owes $5,000 for a personal loan (1.m). Applicant owes $1,557 on a telephone bill (1.n). Applicant owes $466 to a creditor (1.o). Applicant owes $503 on a department store credit card (1.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has 15 unresolved delinquent debts totaling over $62,000, with no payments made in the past four years; He failed to submit a repayment plan or any documentation to address his debts after being given the opportunity to do so; His history of financial irresponsibility, including a previous bankruptcy, raises concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has 15 unresolved delinquent debts totaling over $62,000, with no payments made in the past four years.
- He failed to submit a repayment plan or any documentation to address his debts after being given the opportunity to do so.
- His history of financial irresponsibility, including a previous bankruptcy, raises concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's delinquent debt is current and shows a repeated pattern of incurring debt without repayment.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's unemployment periods were short and not the cause of his debt problems.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not made any good-faith effort to resolve his delinquent debts.
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 issuedSep 22, 2008
- Answer filedSep 29, 2008
- Hearing heldFeb 3, 2009Applicant requested to keep the record open until February 17, 2009.
- Decision dateApr 16, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility