Summary
A 38-year-old government contractor and former U.S. Marine was denied a security clearance under Guideline F, Financial Considerations, due to unresolved debts totaling approximately $36,519. The Statement of Reasons cited several specific financial obligations, including a $48 medical debt, a $962 bank collection debt, a $1,972 telecommunications debt, a $666 bank collection debt, a $9,478 mortgage debt, and a $405 collection debt.
The denial was based on the applicant's failure to adequately address or resolve eight of his eleven debts, which amounted to about $35,000. Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
While mitigating conditions under AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were considered, the applicant did not provide sufficient evidence of a good-faith effort to resolve the majority of his financial obligations. This lack of demonstrated effort raised concerns regarding his reliability and trustworthiness, ultimately leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant had 11 debts totaling about $36,519, with eight debts totaling about $35,000 not adequately addressed or resolved.
- The applicant did not provide evidence of a good-faith effort to resolve the majority of his debts, which raised 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 ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial problems initially resulted from his 2004 divorce and unemployment.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made a $250 payment on one debt and is current on child support.
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant contested responsibility for certain debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the Applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedApr 16, 2009
- Answer filedMay 22, 2009
- Hearing heldJul 23, 2009
- Decision dateAug 20, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Financial Issues on Security Clearance Eligibility
- Mitigating Conditions Related to Financial Difficulties and Their Application in Security Clearance Cases