Summary
A 28-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to multiple delinquent debts exceeding one million dollars. The Statement of Reasons detailed several specific financial concerns. These included an unpaid $213 cable/internet bill, a $14,000 mortgage payment assistance debt on which the applicant was making bi-weekly payments of $120, and a $39,612 mortgage debt where only one payment was made under a loan modification.
Additional debts included a $4,687 bank debt settled for $3,625 in September 2009, a $332 credit union debt that was current as of March 22, 2010, and a $997 student loan debt, for which the applicant was a co-signer, that was current as of June 3, 2010. However, the applicant was unaware of the source of several other charged-off telephone debts totaling $874 and $244, admitting he had not investigated them.
Despite some efforts to address certain financial issues, the judge found that the applicant had not sufficiently mitigated the overall financial concerns. The denial was based on the applicant's multiple unresolved delinquent debts, a lack of demonstrated financial stability, insufficient good-faith efforts to resolve all debts, and a failure to provide evidence disputing certain listed debts.
Why the Applicant Was Denied
- The applicant has multiple unresolved delinquent debts totaling over one million dollars.
- The applicant did not demonstrate a sufficient track record of financial stability or a good-faith effort to resolve all debts.
- The applicant failed to provide evidence disputing certain debts listed in the Statement of Reasons.
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 financial difficulties were influenced by a nationwide recession and a period of unemployment.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not established a consistent effort to resolve all debts.
- AG ¶ 20(e)rejectedDispute of Legitimacy of Past-due DebtThe applicant did not provide evidence disputing certain debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 19, 2010
- Answer filedUndated
- Hearing heldJun 3, 2010
- Decision dateAug 10, 2010
Cite For
- Evaluation of Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of External Factors Affecting Financial Stability