Summary
A 48-year-old information technology professional was denied a security clearance under Guideline F (Financial Considerations) due to approximately $60,800 in unresolved financial issues. The applicant attributed his financial difficulties to temporary employment and medical issues.
The Statement of Reasons detailed numerous debts, including $7,410 in disputed back income taxes from 1997-2000, and multiple credit card and communications debts, many of which the applicant disputed as duplicates or incorrect. Other debts included a $50 medical debt the creditor had no record of, a $467 bad check from 2004, and a $562 storage debt. A $782 judgment was vacated due to inadequate service. One credit card debt of $1,274 had a $500 settlement agreement.
The denial was based on the substantial and long-standing debt, the applicant's failure to provide a documented plan for resolution, and a lack of consistent effort to address his financial situation. Financial counseling was initiated only after the Statement of Reasons was issued, indicating a reactive rather than proactive approach to debt management.
Why the Applicant Was Denied
- The applicant has a substantial debt load totaling approximately $60,800, with many debts remaining unpaid for years.
- The applicant failed to provide a documented plan to resolve his debts or evidence of consistent efforts to address his financial situation.
- The applicant's financial counseling was initiated only after receiving the Statement of Reasons, indicating a lack of proactive measures to manage his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's medical issues affected his financial status.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant sought financial counseling, but it did not result in a plan to satisfy his debts.
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed several debts, leading to some being deleted from his credit report.
Key Rule Quoted
“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedJun 15, 2009
- Answer filedJan 14, 2010Notarized Answer submitted.
- Hearing heldApr 8, 2010Hearing convened as scheduled.
- Decision dateApr 30, 2010
Cite For
- Insufficient Evidence of a Plan to Resolve Financial Obligations Under Guideline F
- Impact of Medical Issues on Financial Stability as a Mitigating Factor
- The Timing of Financial Counseling in Relation to Security Clearance Proceedings