Summary
A 42-year-old federal contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of numerous delinquent debts and financial irresponsibility. The Statement of Reasons detailed multiple outstanding obligations, including a $252 credit card account referred for collection in November 2006, a $625 credit card account charged off in October 2007, and a $1,500 personal loan charged off in June 2008.
Further allegations included $17,741 in delinquent student loans referred for collection in September 2009, an auto loan charged off for $21,159, and a $1,142 delinquent cell phone bill from January 2006. The applicant also had various other delinquent credit card accounts, medical bills ranging from $39 to $605, and a $249 bad check.
Despite some mitigating circumstances, the judge found insufficient evidence of responsible financial management or a proactive approach to resolving these debts. The denial was based on the applicant's inability or unwillingness to satisfy financial obligations, the unresolved nature of the problems, and the determination that actions taken to address debts were insufficient and primarily motivated by security clearance concerns rather than a genuine sense of obligation.
Why the Applicant Was Denied
- The applicant had numerous delinquent debts, indicating an inability or unwillingness to satisfy financial obligations.
- The applicant's financial problems were not resolved and did not occur under circumstances making them unlikely to recur.
- The applicant's actions to address his debts were deemed insufficient and motivated by concern for his security clearance rather than a genuine sense of obligation.
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(a)rejectedBehavior Happened so Long Ago or Infrequently
- AG ¶ 20(b)rejectedConditions Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Counseling for the Problem
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)notedReasonable Basis to Dispute the Legitimacy of the Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJan 3, 2013
- Answer filedJan 24, 2013
- Hearing heldApr 24, 2013
- Decision dateMay 24, 2013
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Proactive Debt Management Leading to Denial
- The Importance of Demonstrating Responsible Financial Behavior in Security Clearance Evaluations