Summary
A 38-year-old male applicant was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debt totaling approximately $14,000 and a lack of repayment efforts. The Statement of Reasons detailed several financial issues, including a credit card debt that resulted in a judgment, a second delinquent credit card debt submitted for collection, and a third credit card debt reported as charged off.
Further allegations included a second judgment for $5,353, stemming from energy-efficient windows installed after the applicant lost his job with a telephone company, and a $153 collection account from a salary overpayment received after his termination from the same company. Disqualifying conditions 19(a) and 19(c) were raised, while mitigating conditions 20(a), 20(b), 20(c), and 20(d) were applied.
Despite having a bachelor's degree and a pending job offer, the judge found that the applicant had made no payments on any of the debts and had not taken effective steps to resolve them. The applicant's financial problems began with the loss of his long-term job, and his current income was deemed insufficient to cover his debts, leading to the denial of the clearance.
Why the Applicant Was Denied
- The applicant has approximately $14,000 in delinquent debt, with no payments made on any of the debts.
- The applicant's financial problems began with the loss of his long-term job, and he has not taken effective steps to resolve his debts.
- The applicant's income is insufficient to cover his debts, even with a pending job offer.
Conditions Referenced
- DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- DC 19(c)appliedA History of Not Meeting Financial Obligations
- MC 20(b)raisedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant lost his job due to downsizing.
- MC 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- MC 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“No one has a right to a security clearance and the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedApr 19, 2010
- Answer filedApr 29, 2010
- Hearing heldAug 18, 2010
- Decision dateNov 8, 2010
Cite For
- Financial Considerations Under Guideline F
- Impact of Delinquent Debt on Security Clearance Eligibility
- Burden of Proof in Security Clearance Cases