Summary
The applicant, a 30-year-old technician with a history of military service, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to significant delinquent debts totaling over $85,000, including 12 past-due student loans. Despite providing explanations for his past conduct, he failed to adequately address his financial obligations, leading to the denial of his clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant completed a Public Trust Position Application in 2005 and an e-QIP in 2010, failing to list ten accounts totaling approximately $8,000, which were delinquent at the time of the applications (2.a). Applicant's explanations concerning the completion of his 2005 Public Trust Position Application and his 2010 Electronic Questionnaires for Investigations Processing (e-QIP) adequately address the personal conduct security concerns (2.b). Credit card account placed for collection, for money Applicant may have used in his failed business (1.a). Collection agency collecting for unpaid rent after he was evicted from his apartment (1.b). Eye clinic debt, which his insurance failed to pay in 2006 (1.c). Telephone service account placed for collection. He asserts he cancelled the service before being deployed (1.d). Cable account placed for collection (1.e). Telephone account placed for collection. This was a business WiFi account (1.f). Cable account placed for collection (1.g). Electric utility account charged off. This was unrelated to the business (1.h). Sallie Mae charged-off student loan of $26,325. As of September 2010 the amount past due was $2,449 (1.i). Sallie Mae charged-off student loan of $27,865. As of September 2010 the amount past due was $2,590 (1.j). Sallie Mae charged-off student loan of $38,627. As of September 2010 the amount past due was $3,593 (1.k). Student loan placed for collection (1.l). Student loan placed for collection (1.m). Student loan placed for collection (1.n). Student loan placed for collection (1.o). Student loan placed for collection (1.p). Student loan placed for collection (1.q). Student loan placed for collection (1.r). Student loan placed for collection (1.s). Balance due following the repossession of his 2003 BMW automobile (1.t). Balance due following the repossession of his 2001 Ford pick up (1.u). Student loan placed for collection (1.v). Advertising sign purchased for his payday loan company (1.w). Mail order CD purchase account placed for collection (1.x).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: Applicant has a total of approximately $85,000 in delinquent debt, including over $37,000 in student loans; He failed to demonstrate a reasonable plan to address his financial obligations or to show good-faith efforts to repay his debts; The applicant's financial problems were ongoing and not under control, which raised concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant has a total of approximately $85,000 in delinquent debt, including over $37,000 in student loans.
- He failed to demonstrate a reasonable plan to address his financial obligations or to show good-faith efforts to repay his debts.
- The applicant's financial problems were ongoing and not under control, which raised 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
Key Rule Quoted
“An applicant is not required to establish that he has paid off each and every debt listed in the SOR. All that is required is for him to demonstrate he has established a plan to resolve his delinquent debt and has taken significant action to implement that plan.”
Procedural Posture
- SOR issuedSep 28, 2010
- Answer filedUndated
- Hearing heldDec 2, 2010
- Decision dateApr 29, 2011
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Failure to Establish a Credible Plan to Resolve Delinquent Debts
- The Importance of Demonstrating Good-faith Efforts to Repay Debts in Security Clearance Cases