Summary
A 29-year-old single male and former Marine Corps member was denied a security clearance under Guideline F, Financial Considerations, due to significant past-due debts totaling over $26,000. The Statement of Reasons detailed nine specific debts, including $335 to a medical creditor since September 2005, $4,708 to a collection agency for a financial institution debt, and $4,033 and $9,775 for two repossessed automobiles owed to finance agencies.
Additional debts included $263 to a collection agency for a cable company, $1,177 for a military member relief society, $143 and $392 to collection agencies for financial and telephone companies respectively, and $6,176 to a bank since June 2001. Disqualifying conditions under Guideline F were raised, while mitigating conditions were considered.
The denial was based on the applicant's failure to demonstrate a good-faith effort to resolve his debts or provide evidence of financial improvement. The judge found that the applicant had not presented a plan to pay his creditors or shown any payments made towards his debts, and his financial difficulties were recent and not under control, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has over $26,000 in past-due debts, all of which have been due and owing for several years.
- The applicant did not provide evidence of a plan to pay his creditors or any payments made towards his debts.
- The applicant's financial difficulties are recent and not under control, raising 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(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence of responsible actions taken to address his financial issues.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Under ControlThe applicant's debts are not under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Pay Off CreditorsThe applicant has not initiated any payments towards his 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 issuedJul 15, 2009
- Answer filedAug 5, 2009
- Hearing held—Decision made without a hearing.
- Decision dateDec 28, 2009
Cite For
- Financial Overextension as a Disqualifying Condition Under Guideline F
- Lack of Evidence of Good-faith Efforts to Resolve Financial Issues
- Recent Financial Difficulties Impacting Security Clearance Eligibility