Summary
A 53-year-old machinist employed by a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns stemming from numerous delinquent debts totaling approximately $17,500. These debts included a $13,930 deficiency from a car repossession, medical debt, an unpaid electric bill, and multiple unpaid or partially paid telephone, cell phone, and cable bills. One cell phone debt was settled.
The Statement of Reasons cited several disqualifying conditions related to the applicant's financial history. While various mitigating conditions were considered, they were ultimately deemed insufficient to overcome the security concerns.
The denial was based on the applicant's admission of the delinquent debts and a failure to demonstrate a clear plan for resolution. The applicant did not provide evidence of responsible financial conduct, nor did he seek financial counseling. Furthermore, he did not establish that the circumstances contributing to his financial problems were beyond his control.
Why the Applicant Was Denied
- The applicant admitted to numerous delinquent debts totaling about $17,500, including a significant deficiency from a car repossession.
- The applicant failed to demonstrate a clear plan to resolve his financial issues or to provide evidence of responsible conduct regarding his debts.
- The applicant did not seek or receive financial counseling, nor did he establish that the conditions leading to his financial problems were beyond his control.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One’s Means
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant settled one debt and made small payments on others.
- AG ¶ 20(a)rejectedBehavior Occurred so Long Ago or Infrequently
- AG ¶ 20(b)rejectedConditions Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Counseling for the Problem
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due Debt
Key Rule Quoted
“"A security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. Rather, a security clearance adjudication is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness in order to make a decision about an applicant’s security eligibility."”
Procedural Posture
- SOR issuedSep 21, 2010
- Answer filedOct 26, 2010
- Hearing heldMar 14, 2011rescheduled from March 2, 2011
- Decision dateMay 12, 2011
Cite For
- Evaluation of Financial Considerations Under Guideline F
- Criteria for Establishing Mitigating Conditions Related to Financial Issues
- Importance of Demonstrating Responsible Conduct in Financial Matters for Security Clearance Eligibility