Summary
A 37-year-old security officer was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties and unresolved debts. The Statement of Reasons detailed numerous delinquent accounts, including medical collections of $212 and $76, cell phone debt of $631, and credit card accounts totaling $494, $978, and $4,006. Other significant debts included a $1,039 collection account, a $706 charged-off account, an $8,001 personal loan in collection, and a $1,658 judgment for a personal loan. Additionally, the applicant owed $16,800 from a truck repossession and had several other collection accounts totaling $877, $226, $245, and $560.
The decision cited disqualifying conditions related to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions were considered, such as the debts not being recent and the applicant having initiated efforts to resolve them, these were insufficient to overcome the concerns.
The denial was based on the applicant's long history of financial irresponsibility, including two Chapter 7 bankruptcy discharges, and numerous unresolved delinquent accounts totaling approximately $36,509. The judge also questioned the applicant's judgment in purchasing a home while carrying significant unresolved debts, ultimately finding insufficient evidence of financial stability or responsible management of finances.
Why the Applicant Was Denied
- Applicant has a long history of financial irresponsibility, including two Chapter 7 bankruptcy discharges.
- Applicant has numerous unresolved delinquent accounts totaling approximately $36,509.
- Applicant's decision to purchase a home while having significant unresolved debts raises questions about his judgment.
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 ControlApplicant experienced periods of unemployment but did not act responsibly with his finances thereafter.
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue CreditorsPartial credit for entering into a repayment agreement, but insufficient evidence of consistent 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 issuedJun 4, 2009
- Answer filedJul 31, 2009
- Hearing heldDec 1, 2009
- Decision dateFeb 4, 2010Record held open until this date for additional documents.
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Financial Cases