Summary
A 31-year-old U.S. Army veteran and simulation technician was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues exceeding $50,000. These issues included multiple charged-off accounts and vehicle repossessions. Specific allegations detailed in the Statement of Reasons included debts to a school, several medical accounts, cable and telephone collection accounts, a collection account possibly for college books, and three video store collection accounts.
Further financial concerns involved a collection account from a voluntary repossession of a Ford truck, a credit union charged-off account due to a $100 checking account overdraft, and another vehicle repossession stemming from engine problems. A $7,704 collection account and a credit card collection account were also cited.
Despite the applicant's mitigating circumstances, such as periods of unemployment and medical issues, the judge found that the financial difficulties were recent and numerous. The applicant failed to demonstrate a plan to address his delinquent debts or make payments to creditors, ultimately raising significant concerns about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant has unresolved financial issues totaling over $50,000, including multiple charged-off accounts and vehicle repossessions.
- The applicant failed to demonstrate a plan to address his delinquent debts or to make payments to creditors.
- The applicant's financial difficulties are recent and numerous, raising concerns about his reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial difficulties are recent and numerous.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, he has not taken sufficient action to address his debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant's previous counseling has not effectively addressed his financial issues.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not made payments on his delinquent obligations.
- AG ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key rule quoted
“The issue is not simply whether all Applicant’s debts have been paid – they have not – it is whether his financial circumstances raise concerns about his fitness to hold a security clearance.”
Procedural posture
- SOR issuedSep 26, 2012
- Answer filedOct 19, 2012
- Hearing heldApr 23, 2013via video teleconference
- Decision dateMay 24, 2013
Cite for
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Consideration of the Whole-person Concept in Financial Cases
- Impact of Financial Irresponsibility on Security Clearance Eligibility