Summary
A 45-year-old employee of a Department of Defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed 18 delinquent accounts totaling approximately $65,791. These included various medical accounts ranging from $25 to $726, several credit card accounts, and other debts such as a $1,231 storage company account, a $1,623 computer electronics store account, and a $174 account owed to a county clerk’s office. The largest debts were a $15,059 credit card account, a $14,299 credit card account, and a $20,614 account, all of which were charged off or placed for collection between 2006 and 2010.
The applicant acknowledged his debts, attributing them to a failed business and personal circumstances. However, the denial was based on his failure to demonstrate any resolution or proactive management of these financial obligations. Specifically, he did not provide evidence of payments made towards any delinquent debts or formal disputes against debts he denied.
The decision concluded that the applicant's 18 delinquent accounts, totaling approximately $65,791, indicated an inability to manage financial obligations. This raised doubts about his reliability, trustworthiness, and ability to protect classified information, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has 18 delinquent accounts totaling approximately $65,791, indicating an inability to manage financial obligations.
- The applicant did not provide evidence of payments made towards any delinquent debts or formal disputes against debts he denies.
- The applicant's financial issues raise doubts about his reliability, trustworthiness, and ability to protect classified information.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial problems were partially caused by the loss of his business.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not taken action towards paying any of his delinquent accounts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant did not formally dispute any of the debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedApr 11, 2011
- Answer filedMay 10, 2011Requested decision on written record.
- Hearing held—Decision based on written record.
- Decision dateAug 11, 2011
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Whole-person Factors in Financial Cases