Summary
A 41-year-old Information Systems Specialist and former Marine was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts totaling over $76,700. The Statement of Reasons detailed multiple outstanding obligations, including $44,833 in defaulted student loans, a $20,000 defaulted car loan, and various credit card debts of $1,970 and $973. Other debts included a $1,602 collection account, a $376 medical debt, a $330 phone bill, and an unknown $346 debt, possibly an electric bill.
Disqualifying conditions were raised under Adjudicative Guidelines Paragraphs 19(a) and 19(c). While mitigating conditions under Paragraphs 20(b), 20(c), and 20(d) were considered, they were ultimately insufficient to overcome the concerns.
The denial was based on the applicant's failure to resolve over $76,700 in delinquent debts, which remained unpaid. The applicant did not initiate action to address these debts until his security clearance became a concern. Furthermore, he had not received financial counseling and had not made payments on his debt consolidation plan, indicating a lack of responsible financial management.
Why the Applicant Was Denied
- Applicant has over $76,700 in delinquent debts that remain unpaid.
- Applicant did not take action to resolve debts until his security clearance became an issue.
- Applicant has not received financial counseling and has not made payments on his debt consolidation plan.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlApplicant experienced unemployment and family medical issues.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemApplicant has not received financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant has not made payments on the debt consolidation plan.
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 issuedMay 15, 2009
- Answer filedJun 9, 2009
- Hearing heldSep 2, 2009
- Decision dateSep 21, 2009
Cite For
- Significant History of Unpaid Debts Under Guideline F
- Failure to Demonstrate Financial Responsibility
- Impact of Financial Issues on Security Clearance Eligibility