Summary
A 47-year-old defense contractor and former Navy service member was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues totaling over $93,000 across 14 delinquent accounts. These debts included a $15,734 judgment from an automobile repossession in 2005, multiple credit card accounts charged off or placed for collection ranging from $1,960 to $12,542, and other collection accounts for a bank, telephone services, cable equipment, and a business-related purchase. The earliest reported delinquency dated back to 2001.
The applicant acknowledged some of the debts but failed to demonstrate a good-faith effort to resolve them. Disqualifying conditions related to an inability to meet financial obligations and a history of not meeting financial obligations were raised. While mitigating conditions such as the debt not being recent, the circumstances being largely beyond the applicant's control, and the applicant having initiated a good-faith effort to resolve the debt were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's persistent financial issues since 2001, with no substantial efforts to resolve the debts. The applicant's approach to debt resolution was deemed passive, relying on the expiration of reporting periods rather than active repayment, leading to concerns about reliability and judgment.
Why the Applicant Was Denied
- The applicant has 14 delinquent accounts totaling approximately $93,097.06, indicating an inability to meet financial obligations.
- The applicant's financial issues have persisted since 2001, with no substantial efforts to resolve debts.
- The applicant's approach to debt resolution was passive, relying on the expiration of reporting periods rather than active repayment.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedHistory of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant experienced sporadic employment, but neglected debts during periods of employment.
- FC MC 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyMost delinquent accounts remain unresolved, indicating ongoing financial issues.
- FC MC 20(c)rejectedReceived Counseling for Financial ProblemsThe applicant has not received financial counseling.
- FC MC 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not made regular payments towards debts.
- FC MC 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide sufficient evidence to dispute the legitimacy of debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedMar 17, 2009
- Answer filedApr 6, 2009
- Hearing heldJul 15, 2009
- Decision dateAug 31, 2009
Cite For
- Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Financial Evaluations