Summary
The applicant, a 43-year-old engineering technician and Navy retiree, faced security clearance denial under Guideline F due to significant unpaid debts totaling approximately $22,000, including charged-off accounts and collections. Despite some payments made on certain debts, the applicant failed to provide sufficient evidence of a credible repayment plan or financial stability, leading to concerns about reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $703 past due on a charged-off account (1.a). $222 charged-off account (1.b). $2,858 credit card collection account (1.c). $809 credit card collection account (1.d). $15,586 collection account on a 2003 vehicle repossession (1.e).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c), AG ¶ 20(e). The decision turned on the following: Applicant has two charged-off accounts and three collection accounts totaling approximately $22,000, with significant amounts remaining unpaid; Applicant failed to demonstrate a credible plan to resolve his delinquent debts or provide evidence of timely payments on multiple accounts.
Why the Applicant Was Denied
- Applicant has two charged-off accounts and three collection accounts totaling approximately $22,000, with significant amounts remaining unpaid.
- Applicant failed to demonstrate a credible plan to resolve his delinquent debts or provide evidence of timely payments on multiple accounts.
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 RecurApplicant's financial problems are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlInsufficient evidence to show that circumstances beyond his control significantly impacted his financial situation.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsMitigating condition applies to some debts that were settled or are being paid.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling provided.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant admitted to the debts without providing evidence of disputes.
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 issuedNov 18, 2010
- Answer filedDec 9, 2010Applicant elected to proceed without a hearing.
- Hearing held—No hearing; decision made based on written submissions.
- Decision dateApr 28, 2011
Cite For
- Denial of Security Clearance Due to Ongoing Financial Issues Under Guideline F
- Insufficient Evidence of Financial Stability and Repayment Plans
- Consideration of Mitigating Conditions in Financial Cases