Summary
A 30-year-old married defense contractor was denied a security clearance due to significant financial issues under Guideline F (Financial Considerations). The applicant admitted to approximately $30,000 in past due debts, which had been outstanding for several years. Specific admitted debts included $8,510 for a vehicle repossession, $2,042 to one loan company, $3,396 to another, at least $627 to a third loan company, at least $233 to a bank, $6,689 to a collection agency, at least $28 to a bank, and $5,673 to a fourth loan company. The applicant denied debts of $131 to a collection agency, $3,539 to a department store, and $10,746 to a credit union for an automobile loan.
The denial was based on the applicant's failure to demonstrate a good-faith effort to resolve these debts or provide evidence of financial rehabilitation. Disqualifying conditions under Guideline F, specifically concerning the inability or unwillingness to satisfy debts and a history of not meeting financial obligations, were raised.
While mitigating conditions related to the circumstances of the indebtedness were considered, they were not sufficient to overcome the concerns. The decision highlighted the potential for pressure, coercion, exploitation, or duress stemming from the applicant's financial situation, ultimately leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has approximately $30,000 in past due debts, all of which have been due for several years.
- The applicant did not demonstrate a good-faith effort to pay off his creditors or provide evidence of financial rehabilitation.
- There is a potential for pressure, coercion, exploitation, or duress due to the applicant's financial situation.
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 have persisted for several years.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not provide evidence of circumstances beyond his control.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Under ControlThe applicant has not shown any progress in resolving his debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has no track record of making payments.
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 issuedMar 9, 2009
- Answer filedMar 27, 2009
- Hearing held—Decision made without a hearing.
- Decision dateSep 18, 2009
Cite For
- Financial Overextension as a Disqualifying Condition Under Guideline F
- Lack of Good-faith Effort to Resolve Debts as a Basis for Denial
- Whole Person Concept Applied in Evaluating Financial Considerations