Summary
A 33-year-old electronic technologist with a military background was denied a security clearance under Guideline F, Financial Considerations, due to significant and ongoing financial issues. The applicant had one charged-off account and 13 unpaid debts, collectively totaling approximately $28,000. These financial problems originated in 2003 and had not been resolved.
The Statement of Reasons detailed numerous collection accounts, including those for a federal credit union, telephone service, a computer purchase, credit cards, a bank account, a student loan, a signature loan, a dentist bill, a school account, a gas utility, and cable service. Additionally, a child support judgment from 2005 was filed with the Office of Recovery Services.
Despite the application of mitigating conditions, the judge found that the applicant failed to demonstrate sufficient efforts to address or resolve these financial concerns. Consequently, the security clearance was denied, as the applicant did not rebut or mitigate the security concerns related to financial considerations.
Why the Applicant Was Denied
- Applicant has one charged-off account and 13 unpaid accounts totaling approximately $28,000.
- Applicant failed to rebut or mitigate the security concerns under financial considerations.
- The applicant's financial problems began in 2003 and have continued without resolution.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some financial issues stemmed from divorce and medical expenses, they were not recent enough to mitigate ongoing financial irresponsibility.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant made minimal payments that were insufficient to demonstrate a good-faith effort.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtApplicant did not provide documented proof to substantiate disputes regarding debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances so as to meet his financial obligations.”
Procedural Posture
- SOR issuedSep 13, 2010
- Answer filedOct 4, 2010Applicant elected to proceed without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateJan 31, 2011
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility