Summary
A 33-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties and unpaid debts. The Statement of Reasons detailed several outstanding obligations, including $842 in bank overdraft fees, $320 owed to a store, a $1,500 joint debt for furniture, and a $971 joint cell phone account debt. Additionally, the applicant had two student loan debts totaling $16,796 and $16,496, respectively, and a $240 payday loan incurred in 2007.
Disqualifying conditions included a pattern of financial irresponsibility and an inability to satisfy debts. While the applicant participated in a student loan rehabilitation program, mitigating conditions were applied for good-faith efforts to resolve some issues and the debts not being recent.
Ultimately, the clearance was denied because the applicant demonstrated an unwillingness or inability to meet financial obligations dating back to at least 2006. Delinquent debts remained unpaid, and the applicant had not established a budget or sought financial counseling. These factors indicated that the applicant's financial problems were not under control, raising doubts about his reliability and judgment.
Why the Applicant Was Denied
- Applicant has a history of being unwilling or unable to meet financial obligations dating back to at least 2006.
- Delinquent debts remain unpaid, and the applicant has not established a budget or sought financial counseling.
- The applicant's financial problems are not under control, raising concerns about his reliability and judgment.
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 Largely Beyond the Person's ControlThe applicant's ex-wife did not pay debts she agreed to pay, but he did not act responsibly regarding his delinquent debts.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant is participating in a rehabilitation program for his student loans and is making monthly 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 issuedOct 8, 2009
- Answer filedJan 20, 2010
- Hearing heldApr 28, 2010
- Decision dateMay 21, 2010
Cite For
- Financial Management Issues Under Guideline F
- Impact of Unpaid Debts on Security Clearance Eligibility
- Consideration of Mitigating Conditions Related to Financial Difficulties