Summary
A 54-year-old defense contractor with a bachelor's degree was denied a security clearance under Guideline F (Financial Considerations) due to multiple delinquent debts totaling approximately $42,000. The Statement of Reasons detailed nine specific debts.
Of these, two debts were resolved: a $2,499 consumer loan judgment and an $8,878 credit card debt. Two other debts were deemed under control: an $8,262 consumer debt with a series of payments made, and a $10,499 consumer debt for which a repayment arrangement was established, with three payments confirmed. However, five debts remained unresolved: a $1,253 credit card debt, a $4,053 credit card debt, a $639 consumer debt, a $2,432 consumer debt, and a $3,570 consumer debt toward which only one $25 payment was made.
The denial was based on the applicant's multiple unresolved delinquent debts and his failure to establish a clear plan for managing his financial obligations. The decision noted that the financial difficulties were partly self-imposed, rather than due to circumstances beyond his control.
Why the Applicant Was Denied
- The applicant has multiple unresolved delinquent debts totaling approximately $42,000.
- The applicant failed to establish a clear plan to manage and resolve his financial obligations.
- The applicant's financial difficulties were partly self-imposed and not due to circumstances beyond his control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's financial difficulties were partly self-imposed.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant has not received recent financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's limited payments on several debts are insufficient to support a finding of good-faith effort.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedSep 2, 2010
- Answer filedSep 28, 2010
- Hearing heldMay 10, 2011Originally scheduled for January 26, 2011, but rescheduled multiple times.
- Decision dateNot specified
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Self-imposed Financial Difficulties on Security Clearance Eligibility
- Insufficient Evidence of Good-faith Efforts to Resolve Debts